Glossary
All terms and definitions governing the AC Transit Employees’ Retirement Plan items are as defined in the Retirement Plan document.
In the event of a discrepancy in definition or description, the version in the Retirement Plan document shall prevail.
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Participant
A Participant is any employee who is eligible to earn a benefit under the Retirement Plan, and any former employee, beneficiary, or alternate payee who is receiving or is eligible to receive a Benefit under the Retirement Plan.
Beneficiary
A Beneficiary is an individual designated by a Participant to receive benefits in the event of a participant’s death.
Employee
An Employee is any employee of the Alameda-Contra Costa Transit District subject to the Retirement Plan.
Retiree
A Retiree is any Vested Participant who has elected a retirement date and for whom the Retirement Board has approved terms of their retirement.
Retirement Formula
A retirement formula is the mathematical equation used to determine retirement benefits.
Typical retirement formulas have three components that, when multiplied, amount to the retirement benefit.
Retirement Benefit = Age Factor x Pensionable Compensation x Years of Service
Age Factor
Age factor is used to determine retirement benefit amounts. It varies across tiers and representation categories; and depends on the age of the Participant.
Pensionable Compensation
Pensionable compensation is the amount of earnings that apply to the calculation of retirement benefit. While related to earnings and salary, they are not equal.
Years of Service
Years of Service means the number of pensionable years of employment. While related to years of employment, they are not equal.
Retirement Plan
The Retirement Plan is the AC Transit Employees’ Retirement Plan, the retirement system for the Alameda-Contra Costa Transit District.
Retirement Plan also refers to the document governing the operations of the AC Transit Employees’ Retirement Plan.
The Retirement Plan is a Defined Benefit plan where vested Participants receive a monthly retirement benefit upon retirement until death.
Defined Benefit Plan
In contrast to Defined Contribution plans, where participants deposit funds periodically and are able to withdraw them at any time (through with a tax penalty if done before or after a certain age); Defined Benefit plans require contributions while employed and provide a retirement benefit for life once retired.
Retirement Type
Under the Retirement Plan, there are several retirement types. Qualification for a retirement type is subject to approval by the Retirement Board.
Service Retirement
This is the most common retirement type and is available for any Participant who is vested and attains retirement age.
Occupational Disability Retirement
This is a retirement type where the Participant is permanently unable to perform job duties within the District.
Total and Permanent Disability Retirement
This is a retirement type where the Participant is permanently unable to perform any job duties for wages or profit.
Vested/Vesting
Being vested refers to the fact that a Participant is eligible for a retirement benefit.
Vesting happens after a pre-determined number of years of service (not years of employment) under the Retirement Plan.
Term-Vested
Term-Vesting happens when Participants have acquired sufficient Years of Service for retirement but end employment with the Alameda-Contra Costa Transit District before retirement age. Term-Vested Participants remain eligible for a retirement benefit once they attain retirement age.
Pensionable Earnings Code
Retirement Compensable Earnings Codes