QUESTIONS & ANSWERS
ABOUT YOUR CTA
EMPLOYEES' RETIREMENT BENEFITS PLAN
The following Q&As
have been prepared to provide summary answer to questions you might have about
the California Teachers Association Employees’ Retirement Benefits Plan
(“Plan”) and to guide you to sections of the Summary Plan Description
("SPD") that contain more information about your question.
These Q&As do not
provide official answers to questions. The SPD summarizes the provisions of the
Plan. Like the SPD, if these Q&As differ from the official Plan
document, the official Plan document will control.
Most questions do not
have a simple answer; therefore, only questions directed to the Plan
Administration Office, and answered by the Board of Trustees in writing, can
result in binding answers, as outlined in the SPD.
All references in these
Q&As to "employer" mean "Participating Employers of the
Plan." A list of those employers (as of the date the SPD is published) is
found in the SPD.
The SPD contains
numerous references to the Plan Office (or Plan Administration Office) which
is: BeneSys, Inc. and the phone numbers are (833) 265-2277 or (925) 208-2277.
You are encouraged to
read the SPD to find the answers to any questions you may have. If you do not
find the answer to your question in either these Q&As or the SPD, please
send your question to the Plan Office or Joint Board of Trustees in writing.
VESTING
Q: When do I become vested in the Plan?
A: Generally, you are credited with one Year
of Vesting Service for each calendar year during which you earn at least 1,000
Hours of Service. If you are paid on a semi-monthly basis, you are credited
with 95 Hours for each payroll period. If you are paid on a monthly basis, you
are credited with 190 Hours for each month. Once you accumulate five (5) Years
of Vesting Service, you are Vested.
Please see SPD page 2
("Vesting and Breaks in Service") and SPD Section II on pages 9-10.
Q: If I am hired
mid-year, do I lose credit for the time worked in the calendar year because I
didn't earn 1000 Hours of Service in that year?
A: You may earn partial credits, however, if
you work less than 501 hours in a calendar year, you will incur a one-year
break in service. You will lose your accrued years of vesting service and all
other rights under the Plan (and the Prior Plan) if you have five (5)
consecutive one-year breaks-in-service before you become vested.
Please see SPD page 2
("Vesting and Breaks in Service") and, for the rules regarding
credited benefit service, please see SPD Section IV.A.2 on page 13.
Q: Does anything else
affect whether I am vested?
A: Certain specific circumstances may also
affect your vesting service credit, e.g., back pay awards, military duty,
family or medical leave, illness and/or other paid and unpaid leaves. Contac
the Plan’s Administration Office for details.
Q: Whom do I contact to
obtain the date I'll be vested in the Plan?
A: Contact the Plan Administration Office: BeneSys Administrators
7180
Koll Center Parkway, Suite 200
Pleasanton,
CA 94566
Toll
Free: 833-265-2277
Phone:
925-208-2277
Fax:
925-395-4101
RETIREMENT BENEFITS
Q: How do I calculate my
retirement benefit?
A: Generally, the basic amount of your
monthly benefit at or after age 55 is determined by multiplying your “Years of
Credited Benefit Service” times 3% of your “Monthly Compensation” as those
terms are defined in the Plan.
Please see SPD, Section
IV, on pages 12-17. Only the Plan Administration Office can give you an
official calculation on your benefit. Contact the Plan Administration Office at
the address listed above for more information.
Q: Are years of "credited benefit
service" (used in calculating benefit amounts) the same as years of "vesting
service"?
A: No.
Please compare SPD Section II on pages 9-10 with
SPD Section IV.A.2 on pages 13-14.
Q: How long must I work at a particular
compensation level for it to qualify as my highest "Monthly
Compensation"?
A: It depends on whether you are a salaried or hourly employee.
Please see SPD page 3 ("Retirement
Benefits") and SPD Section IV.A.1 on pages 12-13.
Q: Assume that, as a
regular employee, I take a temporary position at a higher rate of pay and later
return to my regular position. At retirement, if the pay rate for that
temporary position turns out to be the highest I ever received during my CTA
career, would the temporary position pay rate be my "highest Monthly
Compensation" and used in calculating the amount of my retirement benefit?
A: If your employment status changed from
part-time or temporary status to full-time status at any time during the
60-month period prior to your retirement, your Monthly Compensation will be
adjusted to reflect your part-time or temporary status.
Q: Does the employer
contribute to my 401(k) plan count as compensation?
A: No, only your employee contributions to
your 401(k) plan are counted as compensation under this Plan.
Please see SPD Section
IV.A.1(c) on page 13.
Q: Can I take a cash,
lump sum payment in lieu of monthly payments?
A: No, all benefits are paid in a
monthly annuity payable for your lifetime, and, depending on the form of
benefit you elect, your designated beneficiary’s lifetime.
Please see SPD Sections
VI.A and VI.B on pages 18-19.
Q: When I decide to
retire, is there any advantage to putting off receiving the benefit?
A: If you stop working and delay receiving
Plan benefits, that could affect the calculation of your benefit amount.
Please see SPD pages 4-5
("Important Information to Avoid Loss of Benefits" especially item
5), SPD Sections IV.A and IV.B on pages 12-16, and SPD Section VIII.A on pages 21-22.
Q: If I retire after age 50 but before age 60,
how is my benefit calculated?
A: If you are employed by a participating
employer at the time of retirement, your benefit would be reduced based on the
following percentages:
|
Age at Retirement
|
Percentage of Accrued
Benefit for Benefits Earned Prior to 1/1/21
|
Percentage of Accrued Benefit
for Benefits Earned Starting 1/1/21
|
|
50
|
66%
|
44%
|
|
51
|
72%
|
47%
|
|
52
|
78%
|
51%
|
|
53
|
85%
|
55%
|
|
54
|
92%
|
60%
|
|
55
|
100%
|
65%
|
|
56
|
100%
|
70%
|
|
57
|
100%
|
77%
|
|
58
|
100%
|
84%
|
|
59
|
100%
|
91%
|
|
60 and older
|
100%
|
100%
|
If you are not employed
by a participating employer at the time of your retirement, your benefit would
be reduced based on the following percentages:
|
Age at Retirement
|
Percentage of Accrued
Benefit for Benefits Earned Prior to 1/1/21
|
Percentage of Accrued
Benefit for Benefits Earned Starting 1/1/21
|
|
50
|
64%
|
27%
|
|
51
|
69%
|
29%
|
|
52
|
74%
|
31%
|
|
53
|
79%
|
34%
|
|
54
|
84%
|
37%
|
|
55
|
89%
|
40%
|
|
56
|
91%
|
43%
|
|
57
|
93%
|
47%
|
|
58
|
95%
|
51%
|
|
59
|
98%
|
56%
|
|
60
|
100%
|
61%
|
|
61
|
100%
|
67%
|
|
62
|
100%
|
74%
|
|
63
|
100%
|
82%
|
|
64
|
100%
|
90%
|
|
65 and older
|
100%
|
100%
|
Please see SPD Section IV.B on pages 15-16.
Q: After I retire, when
can I expect my first check?
A: Your benefit payments will commence as
soon as administratively feasible after the effective date of your retirement,
and payments are always made the last day of the month for the current month.
Example: May benefit is
paid on May 31.
The effective date of
your retirement will be the latest of: (1) the day after your last day of
employment; (2) the date your retirement application is filed; or (3) the later
retirement date you specify on your retirement application.
Please see SPD Section
III on pages 10-12.
DISABILITY BENEFITS
Q: Is there any
provision for disability retirement benefits?
A: Yes, if you are a vested member and
qualify as a disabled member within the meaning of the Plan, you have two
choices. You could delay taking your retirement benefits and (in most cases)
continue to accrue additional Years of Credited Benefit Service until they
start. However, before you choose to delay the start of your retirement benefit
payments beyond 12 months, you should contact the CTA Employees' Health and
Welfare Benefits Trust because delaying retirement benefit payments could
adversely affect your eligibility for retiree health benefits from that trust.
Or, you could take an immediate Disability Benefit even if you have not yet
reached age 50.
Please see SPD Section
III.B on page 11 and Section VIII on pages 21-22.
BREAKS IN SERVICE
Q: If I am vested in my
benefit under the Plan, can I have a break-in-service that would cause me to lose my vesting?
A: No, if you are a vested member, you cannot
lose your vested benefits from a break in service.
Please see SPD Section
II.B on page 10, SPD Section IX on page 22, and SPD Sections X.A-C on pages 22-23.
PLAN BENEFIT OPTIONS
Q: Does the plan have
provisions for Domestic Partners?
A: Yes, if you are not legally married but
you have a domestic partner, he or she will be treated as if he or she were
your legally married spouse to the extent described in the Plan and permitted
by law, if you file a completed Domestic Partner Affidavit with the Plan’s
Administration Office. Contac the Plan Administration Office to obtain a copy
of the required Affidavit.
Please see SPD Sections
VI.A-D on pages 18-19 and SPD Section VII on pages 20-21.
Q: I am not married - is
there an option where I can designate my child to receive my benefits upon my
death?
A: For an unmarried participant, there will
only be a death benefit payable if the member made Member-Required
Contributions as defined in the Plan. If you validly designated your child as
your beneficiary when you retired and elected a joint and contingent annuity
form of benefit, payments will be made to your child in accordance with your
elected form of benefit upon your death.
Please see SPD pages 3-4
("Death Benefits"), SPD Sections VI.B.1-3 on pages 18-19, and SPD
Section VII on pages 20-21.
GENERAL QUESTIONS
Q: Who do I contact with questions about my
pension?
A: Contact the Plan Administrator: BeneSys
Administrators
7180
Koll Center Parkway, Suite 200
Pleasanton,
CA 94566
Toll
Free: 833-265-2277
Phone:
925-208-2277
Fax:
925-395-4101
Mailing Address: PO
Box 154
San
Ramon, CA 94583
To find the Q&A’s
about the changes to the California Teachers Association Employees’ Retirement
Benefits Plan under the rehabilitation plan please see the “Trust Bulletin Board”
in the Documents tab of the participant website.
Updated 7/2/2021