Administrative Employee Retirement

CalPERS 2% at 55 Plan

Employees are eligible for CalPERS service retirement at age 50  with five years of service credit.  A PERS disability retiree need not be 50 years old, but must have five years of service. 

Administrative employees working 20 or more hours per week are covered by the California Public Employees' Retirement System (CalPERS) 2% at 55 Plan (single highest year salary formula).

CalPERS is a defined benefit plan with a normal retirement age of 55. Retirement benefits are based upon the employee's age and years of CalPERS service credit at the time of retirement.

VTA pays both the employee and employer contributions to PERS. The employee contribution is 7% of salary.  The employer's contribution varies each year based upon an annual actuarial valuation of the plan.

SEIU, TAEA, and Non-Rep employees hired before January 9, 2012 pay 1% of salary toward the required employee contribution to PERS effective 1/9/12 (1/27/12 pay date) and 3% of salary toward the required employee contribution to PERS effective 12/24/12. (1/11/13 pay date).

SEIU, TAEA, and Non-Rep employees hired on or after January 9, 2012 pay 6% of salary toward the required employee contribution to PERS effective 1/9/12 (1/27/12 pay date) and 7% of salary toward the required employee contribution to PERS effective 12/24/12 (1/11/13 pay date).

For more detailed information regarding CalPERS retirement benefits, visit their web site at www.calpers.ca.gov.

Retiree Medical Plans

To qualify for the Defined Benefit Retiree Medical plan, employees must not have elected to participate in the Defined Contribution Retiree Health Savings Plan.

Defined Contribution Retiree Health Savings Plan

Retiree Health Savings Plan for TAEA, Non-Rep, and SEIU Employees

If hired (or re-hired) on or after 1/1/12, TAEA, SEIU and Non-Represented employees may elect to enroll in a Defined Contribution Retiree Health Savings Plan, paid for by the employer, in lieu of the defined benefit retiree medical plan.

Employees must make a one-time irrevocable election within 30 days after the conclusion of the probationary period.

VTA will contribute $400 per month toward the cost of medical expenses in retirement, starting January 2012.  Employer contributions will increase by 2% each January thereafter.

Employer contributions vest as follows:

•  50% after 5 years of employment
•  60% after 6 years of employment
•  70% after 7 years of employment
•  80% after 8 years of employment
•  90% after 9 years of employment
•  100% after 10 years of employment

Vested contributions become the property of the employee in accordance with the besting schedule and according to applicable State and Federal law.  When an employee participates in the Defined Contribution Retiree Health Savings Plan but does not vest in full, any non-vested contributions and their earning revert to VTA.

An employee is entitled to the vested portion of the Retiree Health Savings Plan upon separation from employment (even if not retired upon separation).  Funds may be used for health expenses as allowed by the IRS, including insurance premiums and reimbursement of most medical expenses tax free.

Retirees covered under the Defined Contribution Retiree Health Savings Plan are not eligibile to purchase retiree medical coverage through VTA.

Defined Benefit Retiree Medical Plan

To be eligible for retiree medical coverage, administrative employees must retire directly from VTA, be age 50, and meet the minimum days of service requirement.

SEIU represented employees hired before 5/15/06 - 5 years (1,305 days)

SEIU represented employees hired on or after 5/15/06 - 8 yrs (2,088 days)

TAEA represented employees hired before 12/5/06 - 5 years (1,305 days)

TAEA represented employees hired on or after 12/5/06 - 8 yrs (2,088 days)

Non-represented employees hired before 2/11/08 - 5 years (1,305 days)

Non-represented employees hired between 2/11/08 & 10/31/09 - 8 yrs (2,088 days)

Non-represented employees hired on or after 11/1/2009 - 15 yrs (3,915 days)

AFSCME represented employees hired before 8/10/07 - 5 years (1,305 days)

AFSCME represented employees hired between 8/10/07 & 12/31/09 - 8 yrs (2,088 days)

AFSCME represented employees hired on or after 1/1/10 -15 yrs (3,915 days)

Spouses and registered domestic partners may continue under the retiree's medical plan at the retiree's expense.  A surviving spouse or registered domestic partner of a retiree may continue to pay for medical coverage through VTA after the death of the retiree as long as the surviving spouse or registered domestic partner was enrolled at the time of the retiree's death.

Retirees covered under the Defined Contribution Retiree Health Savings Plan are not eligibile to purchase retiree medical coverage through VTA.

Medical Premium Contributions

For those retiring before January 2, 2006, VTA contributes the cost of the premium up to the Kaiser single rate.  The retiree pays any premium in excess of the Kaiser single monthly premium.  Those retiring on or after January 2, 2006, must pay $25 toward their monthly premium, plus any premium in excess of the single Kaiser monthly premium.  Retirees pay the full cost of premium for their spouse or other eligible dependents. 

Medical Plans

• Valley Health Plan HMO
• Valley Health Plan Medicare Plan
  (www.valleyhealthplan.org)
  
  
• Kaiser Permanente HMO
• Kaiser Senior Advantage Medicare Plan
• Kaiser Out-of-Area Medicare Plan (northern California only)(www.kaiserpermanente.org)
  
  
• United Health Care of California HMO
• United Health Care-Choice Plus
• United Health Care Secure Horizons (Medicare Plan)
• United Health Care Senior Supplement (Medicare Plan)
  (www.uhc.com)

Transit Passes

VTA retirees, spouses, surviving spouses of retirees, and dependent children of retirees are eligible for transit passes, at no cost to the retiree, for use over VTA lines, including VTA paratransit services.