A
B
C
D
E
F
I
L
N
P
R
S
U
V
A
Accumulated Contributions
Legacy Plan
Your contributions to ERFC Legacy,
including any costs paid by you for the purchase of service
credit, plus the applicable interest paid
on all such amounts.
ERFC 2001 Tier 1 and Tier 2 Plans
Your contributions to ERFC
2001, plus the applicable interest paid
on all such amounts.
This includes any additional amounts
credited through a contribution
match as of June 30, 2004, to
members who completed at least 12
months of service before July 1, 2004,
as provided by Section 1.01(b) of the
Plan Document in effect at that time,
and in accordance with regulations
adopted by the Trustees pursuant
to that section. Note that the
contribution match was terminated
effective June 30, 2004, and that all
ERFC 2001 members with at least
12 months of Credited Service before
July 1, 2004, received a final match.
Actuarial Equivalent
A benefit of equal Reserve Value.
Additional Temporary Benefit
Legacy Plan
A temporary ERFC
Legacy benefit payment
amount that supplements your ERFC
Legacy benefit
payments until you become eligible for full
Social
Security. Also called the “Social
Security Offset Benefit.”
Alternative “Guarantee”
Benefit
Legacy Plan
On July 1, 1988,
changes were
implemented in the
calculation
formulas to be used
in subsequent
ERFC Legacy benefit
plans.
ERFC Legacy members
who were employed by
FCPS on July
1, 1988, and who had
earned service
credit prior to that
date, may elect to
receive an
alternative benefit
amount
to be paid upon
reaching the age of
eligibility for full
Social Security
benefits. These
alternative benefits
are called
“guarantees” because
they
are calculated to
preserve the income
levels that the
affected
ERFC Legacy members
could have
reasonably
expected to earn
under the earlier
plan formulas.
B
Beneficiary
In the event you should die before
receiving benefits equal to your accumulated contributions, ERFC
will refund any remaining balance in
your account, with interest, to your surviving spouse or your named
beneficiary(ies). It’s very important to name your beneficiary from day
one, so ERFC can refund any remaining accumulated contributions in
your account to the beneficiary you choose. You may designate your beneficiary
online
through ERFCDirect or by using
the paper form ERFC
1.
Please Note:
Beneficiary designations submitted
in writing using form ERFC 1
must be notarized.
Benefit Restoration Plan (BRP)
An excess benefit plan, conducted
through a non-qualified arrangement
within the meaning of Section
415(m) of the Internal Revenue
Code, that restores the portion of the
total benefits due to you that
would otherwise be lost by
application of the limitation on
annual benefits, under Section 415(b)
of the Internal Revenue Code, as
applicable to governmental plans.
C
Cost-of-Living Adjustment
(COLA)
Legacy Plan
An annual percentage increase granted
to all ERFC retirees, starting on
March 31 following the calendar year
in which they retired. The first
COLA paid after retirement equals
1.49 percent of the ERFC Legacy benefit payment. Thereafter, a minimum 3
percent COLA will be factored into
the benefit annually on
March 31.
ERFC 2001 Tier 1 Plan
An annual percentage increase granted to all ERFC retirees, starting on March 31
following the calendar year in which they retired. Under the ERFC 2001 Tier
1schedule, the first COLA paid after retirement equals 1.49 percent of the ERFC
2001
Tier 1 benefit payment. Thereafter, a minimum 3 percent COLA will be factored into
the benefit annually on March 31.
ERFC 2001 Tier 2 Plan
An annual percentage increase granted to all ERFC retirees, starting on March 31
following the calendar year in which they retired. Under the ERFC 2001 Tier 2
schedule, the first COLA paid after retirement equals approximately half of the full COLA
amount, capped at 2 percent. Thereafter, the full COLA will equal 100 percent of the
Consumer Price Index for all Urban Consumers (CPI-U) for the Washington, D.C., metropolitan
area for the period ending in November of each year, capped at 4 percent.
Creditable Virginia Service
Legacy Plan
Creditable Virginia Service is a factor
used exclusively for calculating the
VRS Adjustment. It includes service
for which you have been credited, or would have been eligible for credit
under VRS, plus all ERFC Legacy service credit purchased after
January
1, 1989. Most service credit purchased
prior to January 1, 1989 will not be
included in your Creditable Virginia
Service.
Credited Service
Legacy Plan
A factor used to calculate your
ERFC Legacy benefit, which includes all
periods of eligible FCPS employment
for which you have made ERFC contributions, any credited
pre-1973
service, Purchased Service Credit,
accumulated Unused Sick Leave, and
Military Service Credit. (Although federal law would permit FCPS to
require payment of your Member contributions as a condition of
receiving Military Service Credit, the Plan grants credit for
qualified service without requiring payment.)
Please Note: You may not be “re-credited”
for any period of service for which
you have received a refund of ERFC contributions.
ERFC 2001 Tier 1 and Tier 2 Plans
Includes all periods of eligible FCPS employment for which you have
made ERFC contributions, accumulated Unused Sick Leave (effective July 1, 2024), and Military Service Credit to the extent
required under federal law. (Although federal law would permit FCPS
to require payment of your Member contributions as a condition of
receiving Military Service Credit, the Plan grants credit for
qualified service without requiring payment.)
D
Death-in-Service Benefits
Legacy Plan
Benefits payable to a designated
beneficiary, if a vested ERFC Legacy member dies while in FCPS Eligible
Employment, or while on an
approved leave from such a position.
The types and amounts of benefits
depend on the member’s relationship
to the beneficiary. If the death-in-
service is determined to be work
related, the five-year Vesting Service
requirement is waived.
ERFC 2001 Tier 1 and Tier 2 Plans
Benefits payable to an eligible Named Beneficiary, if a vested ERFC 2001 member dies while in
FCPS Eligible Employment, or while on an approved leave from such a position. The types and
amounts of benefits depend on the member’s relationship to the beneficiary.
Deferred Retirement Option Program (DROP)
Legacy Plan
DROP is effective July 1, 2024. Under DROP, if you’re eligible for an unreduced retirement, you can continue to work full time for FCPS and receive a salary for a maximum of five years. Once you enter DROP, you’ll no longer contribute to or earn additional years of service for your ERFC pension. Your monthly ERFC pension benefits will go to an interest-bearing DROP account that’s payable to you at the end of the DROP period. When you exit DROP, you’ll receive the funds in your DROP account and your monthly ERFC pension will start going to you via direct deposit. For all the details, visit the DROP webpage.
With defined benefit plans (also called pensions), a set
formula is established and used to
compute your retirement benefit,
based upon your compensation level
and length of service. ERFC Legacy and
ERFC 2001 together constitute a
defined benefit retirement plan,
qualified under Section 401(a) of the
Internal Revenue Code.
Legacy Plan
In the event a severe injury or illness permanently impedes the
performance of FCPS employment
duties, a fully vested ERFC Legacy member
may be determined eligible for a
disability retirement under the ERFC Legacy benefits structure. Contact ERFC
directly for the application materials
necessary to process and verify any
request for a disability retirement.
E
Early Service Reduction Factors
Legacy Plan
Early service reduction factors are
used to determine a benefit schedule
of equivalent total value when you
elect to begin drawing benefits before
you are eligible for a full service
retirement. See the Table of Early
Service Reduction Factors detailed in the
back of the ERFC Legacy
handbook.
The periods of paid employment and approved leave with pay, in specific FCPS
positions, throughout which contributions are paid to ERFC. “Eligible” FCPS
positions include all full-time, monthly paid teachers and related educational
personnel, instructional assistants, administrative, technical and support staff
employees.
F
Your salary for the 12 months immediately preceding
termination of Eligible Employment.
Final Average Compensation
(FAC)
Legacy Plan
The average of your three
highest consecutive years of salary
during Eligible Employment, as
defined by the Board of Trustees
in uniform and nondiscriminatory
regulations.
ERFC 2001 Tier 1 Plan
The average of your three highest consecutive years of salary during Eligible Employment,
as defined by the Board of Trustees in uniform and nondiscriminatory regulations.
ERFC 2001 Tier 2 Plan
The average of your five highest consecutive years of salary during Eligible Employment,
as defined by the Board of Trustees in uniform and nondiscriminatory regulations.
Full Service Benefit
The Legacy Plan
Under the ERFC Legacy benefit structure,
you are entitled to Full Service
Benefits when you reach age 55 years
or older with 25 or more years of
Credited Service, OR at age 65 with
5 or more years of Vesting Service.
Interest is credited each fiscal year on
all amounts that have been on deposit
with ERFC for the full fiscal year.
The current rate is 4 percent. Based on ERFC’s financial standings,
the Board of Trustees may adopt a
different rate for a particular year.
L
Level Lifetime Benefit (LLB)
Legacy Plan
Under the Level Lifetime Benefit
(LLB), you receive a level
monthly ERFC Legacy benefit amount. The LLB is of equivalent
actuarial value to the other payment
types, but with a present value (in
actuarial terms) at least equal to your balance of Accumulated
Contributions at the time of
retirement.
N
Nominated Beneficiary (Survivor)
The person you name to receive your ERFC pension benefit after your death. Your selection of a
survivor is optional and is limited to one of the following:
- Your surviving spouse
- A former spouse
- A dependent child who is physically or mentally incompetent as determined by a court, or
otherwise verified by ERFC
- Another person, 40 years of age or older, for whom you have provided more than 50 percent
support for
at least one year immediately prior to your retirement from FCPS
P
Purchased Service Credit
Legacy Plan
ERFC permits members under the ERFC Legacy benefit structure to purchase service credit for
periods of prior Eligible Employment that do not otherwise qualify for retirement or pension benefits.
Although you may not purchase credit to attain vesting, service credit may be purchased, within eligibility
conditions, to help qualify for full or reduced service retirement benefits sooner than anticipated.
R
Reduced Service (Early Service)
Benefit
Legacy Plan
An option under the ERFC Legacy benefit
structure that allows a fully vested
member to retire up to 10 years prior
to reaching the eligible age for a
full service retirement. The amount
of the monthly benefit is reduced because payments are initiated earlier
and distributed over a longer period
of time.
The present value of all payments to
be made on account of any benefit,
using such reasonable rates of interest
and tables of experience as the Board
of Trustees shall adopt from time to time after consulting with the
actuary.
S
Social Security Offset Benefit
Legacy Plan
An ERFC Legacy benefit amount that
supplements your ERFC Legacy benefit temporarily, if elected, from the date
you retire until
you become eligible for full Social
Security benefits. Also called the
“Additional Temporary Benefit.”
Survivor (Nominated Beneficiary)
The person you name to receive your ERFC pension benefit after your death. Your selection of a
survivor is optional and is limited to one of the following:
- Your surviving spouse
- A former spouse
- A dependent child who is physically or mentally incompetent as determined by a court, or
otherwise verified by ERFC
- Another person, 40 years of age or older, for whom you have provided more than 50 percent
support for
at least one year immediately prior to your retirement from FCPS
U
Legacy Plan
Sick leave you earned prior to the effective date of
retirement for which you have received neither sick pay during
employment nor payment following
employment termination. Unused
Sick Leave will not be counted as
Credited Service for the purpose of
determining retirement eligibility but only for the purpose of increasing
the amount of your benefit under the ERFC Legacy plan structure. See Chapter 3 of the ERFC Legacy
handbook for additional information on the applications of unused sick leave.
ERFC 2001 Tier 1 and Tier 2 Plans
Sick leave you earned prior to the effective date of
retirement for which you have received neither sick pay during
employment nor payment following
employment termination. Unused
Sick Leave will not be counted as
Credited Service for the purpose of
determining retirement eligibility but (effective July 1, 2024) only for the purpose of increasing
the amount of your benefit under the ERFC 2001 plan structure.
V
The period of time in your FCPS
career in which you are earning
the right to receive a retirement
benefit from ERFC. You are
considered “fully vested” after you have completed five years of Vesting
Service, working in an eligible
position with FCPS as a contributory
member of ERFC. Also includes
Military Service Credit for such
periods of time for which a member
is entitled to credit under federal
law. As long as you are a fully vested
member, you can earn the right to
receive a retirement benefit, even if
you leave FCPS employment before
you are eligible to retire.
Legacy Plan
The VRS Adjustment is a factor in
the ERFC Legacy benefit formula used to
adjust the level of ERFC Legacy benefits
necessary to provide an appropriate
supplement to the corresponding
amount of benefits you can expect to
earn from the Virginia Retirement
System (VRS).
VRS Average Final
Compensation
Legacy Plan
The “average final compensation”
used in calculating your VRS
benefits pursuant to applicable
provisions of the Virginia Code.