Welcome to LACERS!
Contact Us Homepage
Important Information Regarding Your Retirement Benefits


If You Plan on Transferring or Promoting to DWP – Reciprocity Has Been Suspended between LACERS and WPERP

On December 10, 2013, the City of Los Angeles adopted an ordinance suspending reciprocity, effective January 1, 2014, between the Los Angeles City Employees’ Retirement System (LACERS) and the Water and Power Employees Retirement Plan (WPERP).

Please contact LACERS to explore how your retirement benefits may be impacted if you transfer or promote to DWP.

What is the current reciprocity agreement?
The current agreement between the City of Los Angeles and the Department of Water and Power (DWP) allows Members to move from either agency within a specific timeframe allowing portability of some retirement benefits.

Transfers or Promotions Prior to January 1, 2014

  1. What happens to my LACERS Retirement Contributions and Service if I become a WPERP Member prior to January 1, 2014?
    Your Contributions and Service will automatically transfer to WPERP, unless you choose otherwise by making a “negative election” at WPERP.   

    1. If you are a Tier 1 Member, and your Contributions and Service automatically transfer, you may lose any future right to LACERS Tier 1 Membership.

    2. You may keep your Contributions and Service with LACERS if you make a negative election. If you leave on a transfer, you have seven months to make a negative election. If you are on a protective leave, you have 30 days after the end of your protective leave to make a negative election.

Transfers or Promotions On or After January 1, 2014

  1. What happens to my LACERS Retirement Contributions, Service, and retirement eligibility, if I become a WPERP Member?
    Your LACERS Retirement Contributions and Service stay on deposit with LACERS until you leave City service through resignation, termination, or retirement.  When you retire, your years of Service with both agencies may be combined for eligibility purposes only, and you will receive a benefit from each plan based on the Service and final average salary earned at each plan.
     
  2. If I am an Active Member of LACERS and transfer or promote to DWP on or after January 1, 2014, do I become a Tier 2 Member of WPERP?
    To determine your Tier status in WPERP, please contact WPERP.
     
  3. What happens if I become a LACERS Member again?
    Your Service, Contributions, and interest earned while working for DWP will stay on deposit at WPERP.  If you did not transfer your LACERS funds to WPERP, you will return to the same benefit tier that you belonged to when you left.  If you were a Tier 1 Member and transferred your LACERS funds to WPERP, you will return as a Tier 2 Member.
     
  4. As a WPERP Member, can I purchase my LACERS Service Credit and apply it toward my WPERP retirement?
    To determine your Service Credit purchase options, please contact the WPERP. If you are currently a Tier 1 Member of LACERS, and are eligible to purchase your LACERS Service Credit at WPERP, making that purchase may cause you to lose any future right to LACERS Tier 1 Membership.
     
  5. What happens if I leave my Retirement Contributions on account at LACERS?
    If you leave your Retirement Contributions and Service on deposit with LACERS, at the time of retirement, your years of Service with both agencies may be combined for retirement eligibility purposes only, and, when eligible, you will receive a benefit from each plan based on the Service and final average salary earned at each plan.
     
  6. LACERS Members are eligible to receive a partial health subsidy if they have at least 10 years of Service at the time of retirement.
    1. If I have less than 10 years of Service with LACERS, what happens?
      You will not be eligible for a LACERS health subsidy.
       
    2. If I have more than 10 years of Service, what happens?
      You may receive a health subsidy based on the number of whole years accrued at LACERS. If, as a Retiree, you are receiving a LACERS health subsidy (for use solely with LACERS Retiree health plans or Medical Premium Reimbursement Program) and a WPERP health subsidy (for use solely with a DWP Retiree health plan), the combined amount of both subsidies cannot exceed the amount of LACERS’ maximum health subsidy.
       
    3. How is my LACERS health subsidy calculated?
      Tier 1 Members: You will receive 40% of the maximum subsidy with 10 years of Service, plus 4% of the maximum subsidy for each additional whole year of Service Credit, not to exceed 100% of the maximum subsidy.

      Tier 2 Members: You will receive 40% of the maximum subsidy with 10 years of Service Credit, plus 3% of the maximum subsidy for each additional whole year of Service Credit, not to exceed 100% of the maximum subsidy.
       

Glossary of LACERS terms


Member Contributions – Money recorded in an individual account to partially fund your retirement. At LACERS, your Contributions earn interest based on the average rate of a five-year U.S. Treasury Note. Interest is credited to your account on a monthly basis.

Negative Election – A choice you make to keep your funds and service at LACERS in the event you transfer or promote to DWP. For instance, if you are a Tier 1 Member, a Negative Election allows you to retain rights to Tier 1 status at LACERS should you become a LACERS Member again.

Reciprocity – An agreement among certain California public retirement systems allowing Members to move from one public employer to another within a specific timeframe allowing some portability of retirement benefits.

Service – Only those periods during which you were a Member of the Plan and 1) received compensation from the City as an employee, or; 2) received temporary disability Workers’ Compensation benefits and also paid Contributions to the Plan.

Service Credit – Accounts for the hours you worked and made your Member Contribution to LACERS. Full-time employees receive 0.03835 years of Service Credit each pay period. The Service Credit for part-time employees is prorated for each pay period based on the actual hours worked divided by 80 hours.

Please contact LACERS to explore how your retirement benefits may be impacted if you transfer or promote to DWP.

If you have further questions regarding changes to LACERS reciprocity with WPERP, please call (800) 779-8328 or email at lacers.services@lacers.org