FAQs

Frequently Asked Questions (FAQ)

Is this retirement plan the same as the deferred comp? And whats the difference between this retirement plan and a 401 (k) or other retirement plans?

The ACERA plan is not associated with the deferred compensation plan offered through the County. A 401(k) and a 457 plan (deferred comp) is a defined contribution plan, which means you receive a retirement allowance based upon the amount of money you contributed, any interest earned and any employer matching funds. The benefit lasts so long as the funds in your account are available. The ACERA retirement plan, is a "defined benefit" plan which provides a retirement benefit for life, regardless of the amount of money you contributed. The following chart illustrates the differences.

	Defined benefit plan (ACERA, PERS, ’37 Act Counties)	Defined Contribution Plan (401(k), 457 — deferred comp.)
Payments depend on…	Your age, service and salary	The amount in your account
The performance of the stock and bond markets	Has no effect on the amount of money you receive when you retire.	Affects your investment earnings and thus the size of your account balance
Payments last…	For your lifetime (and possibly for your beneficiary’s)	Until the money in your account is gone
If the cost of living increases…	You may be eligible for a cost of living increase	Your dollars don’t go as far