To All StanCERA Active and Deferred Members Regarding the Alameda Decision:
In late July, the California State Supreme Court handed down its decision in now what is commonly referred to as the “Alameda Decision”. Essentially, the Court has disallowed the use of elements of pay associated with “on-call” duty to be used in the calculation of a member’s final average compensation at retirement. As such, StanCERA will no longer be accepting member contributions on pay elements associated with on-call duty beginning with the first full payroll period in September. The Decision affects all StanCERA members who were active at any point in time between January 1, 2013 and August 31, 2020 and who had on-call pay elements reported in their salary to StanCERA during that period. Accordingly, from this point forward, we will no longer be using these elements in the calculation of final average compensation which ultimately determines a member’s retirement benefit or benefit estimate.
It is also anticipated that StanCERA will be refunding active member contributions made to StanCERA on on-call pay elements between January 1, 2013 and August 31, 2020. The timing of the refunds most likely will not be made until early 2021 and should include refundable interest earnings earned on those contributions through June 30, 2020.
Thank you in advance for your patience in this matter. Please refer back to StanCERA’s website at www.stancera.org for additional information should it become available.
Rick Santos, CFA, ASA, MAAA
Executive Director, StanCERA
In late July, the California State Supreme Court issued its decision in a case generally referred to as the “Alameda Decision”. The case combined several outstanding issues brought by various labor associations around the State regarding the inclusion of certain types of pay elements in the calculation of final average salary. Final average salary ultimately determines the size of a member’s retirement benefit and, the larger the final average salary, the larger the retirement benefit. The issue at hand here is whether these pay elements should have been included in the calculation of final average salary at retirement for certain StanCERA members.
Due to the recent COVID-19 outbreak, StanCERA will be implementing limited service protocol 17th for our members. Beginning March 17 , StanCERA will no longer be allowing customer access onsite. This means that one-on-one counseling sessions will not be available, and you will not have the ability to interact with StanCERA staff or drop off forms and applications in person at our counter. This does NOT mean that StanCERA is ceasing business.
Documents may be submitted via U.S. Mail, email (email@example.com) or dropped off in the lobby at 832 12th Street and will be processed by StanCERA Staff.