CONNECT with the CityLeaving City Employment
As you plan for your transition to leave City employment, the following information is available to assist you through the process. If you are retiring, or need help determining if your eligible to retire, San Diego City Employee's Retirement System (SDCERS) offers retirement planning tools and resources to help you with your benefit decisions.
Below is information on when your benefit coverage will end, along with non-health benefit conversion options.
When Flexible Benefits Will End
Health, Dental and/or Vision Insurance
Coverage will continue through the end of the month in which your last day of active employment occurred. Please pay careful attention to your last day of active employment, as this will impact your benefits coverage. See the three examples below:
| Last Day of Active Employment | Separation Date | Benefits End Date |
|---|---|---|
| Oct. 30 | Oct. 31 | Oct. 31 |
| Oct. 31 | Nov. 1 | Oct. 31 |
| Nov. 1 | Nov. 2 | Nov. 30 |
The prepayment of health insurance premiums will be adjusted on your final paycheck.
For information on your rights to continue health coverage for you and your dependents, please refer to the City's COBRA webpage. Note, due to the timing of when your separation is entered in the City's payroll system and when information is sent to Health Equity/WageWorks, the City's COBRA administrator, it may take between three to four weeks for you to receive your COBRA election packet. You will have 60 days from the date the COBRA packet is mailed to enroll in COBRA coverage.
Life Insurance (Basic and Supplemental)
If you are enrolled in the City's Group Life insurance policies through The Hartford. The City's plans offer Conversion or Portability options for you and your dependents. Conversion and portability are not available for Accidental Death & Dismemberment (AD&D) coverage.
You will receive a Notice of Continuation of Coverage to complete and return directly to the life insurance carrier within 31 days from the date your coverage ends.
Flexible Spending Accounts (FSA) Reimbursements
Dependent/Child Care (DCC) - contributions accrue until you separate employment. You are eligible to receive up to the accrued amount by submitting claims to WageWorks, the City's FSA administrator. Claims may be submitted within 30 days of separation for services received and paid for prior to separation.
Dental/Medical/Vision (DMV) - the full annual allotment is available until separation. Healthcare expenses can be paid for through your last day of work with the WageWorks-issued debit card. Any claims may be submitted within 30 days of separation for services and/or supplies received prior to separation.
If you do not submit claims within the 30-day period, any funds remaining in your DCC or DMV accounts will be forfeited.
Employee Retirement/Savings Plans
San Diego Employees' Retirement System (SDCERS)
If you are an SDCERS member planning on retiring, you should visit the SDCERS website at www.sdcers.org six months in advance, create a secure Member Portal account, and use the Benefits Calculator to review benefit estimates. Six months before you are eligible to retire, your Member Portal account will include Online Applications to start the retirement process. Once you submit your initial application online, you will be contacted to schedule your personal counseling appointment. During your appointment, the retirement counselor will answer your questions and provide you with a final summary of your selections. Your application is not complete until you sign and submit your final application provided by your counselor. Pre-retirement webinars are offered monthly and are open to all SDCERS members at any age. For questions, call 619-525-3600.
If you are an SDCERS member and terminate prior to being eligible for retirement, your options vary depending on whether you are vested and if you are a General Member, Safety Member or Elected Officer. You will be sent a Termination Packet with your options approximately four weeks after you leave employment. For information regarding the City's defined benefit (pension) plan, please visit www.sdcers.org.
Mandatory Defined Contribution Plans
Supplemental Pension Savings Plan (SPSP and SPSP-H)
When You Can Access Your Funds
Once you are no longer a City employee (retirees hired as provisional are considered termed employees for distribution purposes), you can have access to your SPSP or SPSP-H account. Note, however, that due to the timing of your separation and when electronic files are sent to Principal, it may take between two to four weeks for Principal to have your separation documented in their system.
For More Information
Please contact the Principal at 1-800-547-7754 to request a distribution, for a breakdown of pre-tax and post-tax balances, for more information regarding rollovers, or for any questions regarding your account.
When You Can Access Your Funds
Once you are no longer a City employee (retirees hired as provisional are considered termed employees for distribution purposes), you can have access to your 401(a) account. Note, however, that due to the timing of your separation and when electronic files are sent to Principal, it may take between two to four weeks for Principal to have your separation documented in their system.
For More Information
Please contact the Principal at 1-800-547-7754 to request a distribution, for a breakdown of pre-tax and post-tax balances, for more information regarding rollovers, or for any questions regarding your account.
Voluntary Defined Contribution Plans
When You Can Access Your Funds
Once you are no longer a City employee (retirees hired as provisional are considered termed employees for distribution purposes), you can have access to your 401(k) account. Note, however, that due to the timing of your separation and when electronic files are sent to Principal, it may take between two to four weeks for Principal to have your separation documented in their system.
For More Information
Please contact the Principal at 1-800-547-7754 to request a distribution, for more information regarding rollovers or for any questions regarding your account.
When You Can Access Your Funds
Once you are no longer a City employee (retirees hired as provisional are considered termed employees for distribution purposes), you may begin distributions at will, at any age, without penalty. This is due to the fact that plan participants must only be “separated from service” (retired or terminated) to begin distributions of their account. In other words, 457 plan distributions are “service-based” and not subject to age restrictions. Note, however, that due to the timing of your separation and when electronic files are sent to CalPERS/Voya, it may take between two to four weeks for CalPERS/Voya to have your separation documented in their system.
Distribution Options
You may leave your money in your CalPERS 457 Plan account for as long as you want; there is no minimum account balance. Distributions may be taken in any fashion a person chooses: full or partial lump sum or systematic (monthly/quarterly/semi-annual/annual) withdrawals, which may be changed, stopped and/or restarted until funds are depleted. Distributions from your CalPERS 457 Plan account are subject to mandatory 20% Federal and appropriate State withholding taxes, with documentation sent annually for tax return preparation. There is no early withdrawal penalty associated with the CalPERS 457 Plan; as long as you have separated from City service, you may withdraw funds at any age without an additional tax penalty.
Rollover Options
Assets in the plan may be rolled over to either another employer plan (if allowed by the new plan) or an Individual Retirement Account (IRA) after separation. Pre-tax funds may be rolled over to the City of San Diego 401(k) Plan. When received by the new plan, the funds assume the new plan's rules (for example, early withdrawal penalties apply if funds are withdrawn from an IRA before age 59½). Transfers from the 457 plan are reportable to the IRS but not taxable in the year of transfer.
Future Considerations
No future contributions may be made after leaving City employment. There is no Required Minimum Distribution (RMD) necessary until age 70½ years of age. The IRS mandates the beginning of the Required Minimum Distribution.
For More Information
Please contact the CalPERS Information Line at 1-800-260-0659 (press 2 for a Participant Service Representative) to request a distribution, for more information regarding rollovers or any questions regarding your account.
Post-employment Health Benefits
Options A and B are defined benefit-style retiree health plans for eligible employees hired prior to July 1, 2005. Benefit Outsourcing Solutions administers the reimbursements for Option A & B plans. Once you retire from City and receive your first pension payment, your information will be sent to the administrator and then you will be able to register your account at SDRetireeHealth.com. You can also reach the health service center at (855)-380-5898, open on regular business days from 5:00 a.m. to 3:00 p.m. (PST), or via email at info@SDRetireeHealth.com. Please Note: If you contact the administrator before receiving your first pension payment, your account will not be setup yet. You must wait until after your first pension payment to setup an account online.
Eligible employees who were hired prior to July 1, 2005, and who elected Option C, will receive an allocation to their Option C account when they meet the applicable age and years of service requirements. You will get funded when you turn 55 if you have 20 years of service or until 62 years of age if you have less than 20 years. For safety employees, you will get funded at 50 years with 20 years of service or 55 years with 10 years of service. You will receive an enrollment packet from your trust account administrator within 60 days of funding. Please contact the Risk Management Department Savings Section at 619-236-6600 if you have not received your packet within 60 days.
The Option C trust account administrators are as follows:
- For unrepresented/unclassified employees and deferred vested employees: Voya Financial Health Account Solutions 1-833-232-4673 www.voya.com/ws/myhra (select "access your account")
- For represented employees other than Local 145 members: HealthInvest HRA (Gallagher) 1-844-342-5505
- For Local 145 members: IAFF Medical Expense Reimbursement Plan (administered by Vimly Benefit Solutions) 1-425-367-0743
If you were contributing to a retiree medical trust (RMT), upon separation you are now eligible to submit claims for qualified health care expenses or monthly premiums. There is no minimum retirement age. Full distributions are not available.
The RMT administrators are as follows:
- Eligible non-safety employees hired on/after July 1, 2009: Voya Financial Health Account Solutions 1-833-232-4673, https://www.voya.com/ws/myHRA.
- Local 911: HealthInvest HRA (Gallagher), 844-342-5505
- Local 145: IAFF Medical Expense Reimbursement Plan(administered by Vimly Benefit Solutions), 425-367-0743
Other Benefits
The City’s free U-Pass through MTS will deactivate upon separation. Employees enrolled in the monthly COASTER will be able to utilize their pass through the end of the month that they separate employment.
Notes
- The above is provided as general information. Any differences between the content of this overview and the plan documents, the plan documents will prevail.
- Specific questions regarding your pension (if eligible) should be referred to SDCERS.
- For specific 457(b), 401(k), 401(a) and SPSP/SPSP-H eligibility questions, contact the City's Risk Management Department Employee Savings Section at 619-236-6600.
- Any tax questions should be referred to a qualified tax advisor.