Actuarial valuation: a mathematical estimate of a pension plan’s financial standing at a specific point in time

Annuity: a series of retirement payments that come from your contributions and interest for a specified period of time (number of years, lifetime, etc.)

Beneficiary: a person that you name in writing to receive certain benefits provided by your plan upon your death

COLA: “Cost-of-living adjustment;” based on the Consumer Price Index — maximum annual COLA adjustment for OCERS retirees is 3% per the Retirement Board

Consumer Price Index: “CPI;” measure of the rate of changes in prices that’s used by pension funds to measure inflation

Deferred Reciprocal Retirement: eligibility to receive benefits if you terminate OCERS employment, leave your member contributions on deposit with OCERS, and transfer to another reciprocal system within six months of your termination

Deferred Regular Retirement: eligibility to receive benefits if you leave your member contributions on deposit with OCERS and terminate employment other than by retirement

Defined Benefit Plan: OCERS pension plan designed to pay each member a lifetime benefit based on: benefit formula, a member’s age at retirement, member’s length of service, and final average salary

Disability Retirement: payable retirement allowance if you become permanently physically or mentally incapacitated from substantially performing the usual duties of a permanent assignment in your job classification

Eligible Child (Children): your unmarried child/children under the age of 18; or unmarried, under the age of 22, and a full-time student

• Includes adopted children, or stepchildren living with the member at the time of death due to disability

Eligible Spouse: the person to whom you are legally married

• Includes Qualified Domestic Partner

Final Average Salary: measure of your level of earnings based on your average salary for a specified period of time used to calculate your monthly retirement allowance

• Includes base salary, uniform allowance, shift differentials, bilingual pay, etc.

General Members: all members not in a Safety classification

Legacy Member: OCERS-covered employee who was an active member prior to January 1, 2013

OR: deferred member of OCERS prior to January 1, 2013 who returns to the same employer

OR: deferred reciprocal member of another system prior to January 1, 2013 who became an active member of OCERS within six months of deferring membership in the reciprocal system

Nonservice-Connected Disability: an injury or disease that is permanently incapacitating (i.e., prevents you from performing the usual duties of your job) but not caused by your employment

• Members must have five or more years of service credit to apply for Nonservice-Connected Disability retirement benefits with OCERS

OCERS: Orange County Employees Retirement System; referred to as the “System”

Pensionable Compensation: your base pay and regularly recurring pay items for special skills or shifts; one of the factors used in calculating your monthly retirement allowance

• Applicable to PEPRA plans T and U

PEPRA: California Public Employees’ Pension Reform Act that took effect on January 1, 2013; changes the way OCERS’ retirement benefits are applies and places compensation limits on certain members

Qualified Domestic Partner: person that the member is in a registered domestic partnership with the California Secretary of State in accordance with Family Code Section 297

Reciprocity: ability for your benefits to be coordinated if you transfer from one covered retirement system to another that enables you to preserve and enhance your total system benefits — certain restrictions apply

Service-Connected Disability: an injury or disease that is permanently incapacitating (i.e., prevents you from performing the usual duties of your job) and caused by your employment

• Members may apply for Service-Connected Disability retirement benefits with OCERS

Service Credit: hours worked under membership with OCERS converted to years for your contributions and credit in the Retirement System

Service Retirement Allowance: amount of money you receive when you retire based on your benefit formula, years of service credit, final average salary, and age at retirement

STAR COLA: “Supplemental Targeted Adjustment for Retirees Cost-of-Living Adjustment;” paid to certain retirees and survivors who have lost more than 20% of their original benefit’s purchasing power due to inflation — amount must be approved each year by the Board of Retirement

Summary Plan Description (SPD): general description of the retirement plan provisions provided by OCERS to members and beneficiaries

Survivor Benefits: payable to your eligible spouse/qualified domestic partner or eligible children after your death

Unmodified Option: retirement option that provides you with the maximum retirement allowance available and a continuation benefit to your eligible spouse, qualified domestic partner, or eligible children upon your death