In September 2012, the California Public Employees' Pension Reform Act (AB 340) was signed into law by Governor Brown. As mandated by AB 340, the EBMUD Retirement Ordinance has been amended to add a new tier, which will be applicable to all new employees hired for the first time into a public employees retirement plan, on or after January 1, 2013.
The EBMUD Retirement Plan (2013 Tier) for new members:
- is a defined benefit plan with a maximum benefit formula of 2.5 percent at 67;
- limits the amount of pensionable compensation for determining a pension benefit to the Social Security wage base period based on the highest average compensation for a period of 36-consecutive months;
- requires that new employees pay at least 50 percent of the normal cost of the defined benefit plan, pre-tax.
The EBMUD Retirement Plan for existing members (including those with eligible reciprocal service):
- continues a defined benefit plan based on age at retirement, years of service, the average of highest 24-consecutive months of salary and the benefit formula of 2.6 percent at age 62;
- continues contributions of 7.83 percent of salary (pre-tax);
- allows retirement eligibility at age 54 with a minimum of five years of service.
Upon retirement, all retirees are eligible for the health insurance benefit up to $550 a month for retirees with spouse/financially dependent domestic partner, or up to $450 for single retirees or a surviving spouse or domestic partner. Members receive a prorated subsidy equal to 25 percent of the maximum health insurance benefit for every 5 years of retirement service credit (5 years = 25%, 10 years = 50%, 15 years = 75% and 20+ years = 100%).
If you have any questions about the EBMUD Retirement Plan, please call Human Resources' Employee Services Division at (510) 287-0752.
The EBMUD Retirement Plan has reciprocity with CALPERS agencies, under which retirement benefits from one agency may be based upon salary earned in another.
Employees may voluntarily participate in 401k and 457 plans, and a 401(a) plan available to some employees.