The Internal Revenue Code (IRC) Section 415 imposes a ceiling on benefits that can be paid by a state or local government defined benefit plan such as FCERA. Benefits are limited to an absolute dollar amount that is indexed annually to account for inflation. For 2018, the dollar limit is $220,000 at age 62. Under age 62, the limit is lower for General members and for some Safety members not meeting the IRC definition of “Safety.”
The County of Fresno has created a Replacement Benefit Program for County employees who are subject to the limitations of IRC §415. Under the Replacement Benefit Program, your retirement benefit check will be issued by the County of Fresno once the annual maximum payable by FCERA is reached. Payment by FCERA resumes at the beginning of the following year. The County of Fresno is the only FCERA plan sponsor that has established a Replacement Benefit Program for its retired employees. The Replacement Benefit Plan is not available to any members enrolled in Tier V.