Ask Benny
Ask Benny
Introducing Ben E. Fits, aka Benny, our latest advice column dedicated to retirement benefits!
This feature is designed to be an invaluable resource for our members, offering guidance on general pension-related queries, retirement benefits, beneficiaries, and retirement planning.
Note: Please include your name and the best contact number, so we can review your information and provide you with the most accurate response.
If you have a general question, email Ask Benny!
For questions specific to your personal situation, please go to Contact Us.
Dear Benny
What does my plan mean and how do I know which one I'm in?
Your plan defines your retirement benefit. For example, if you are Plan J, your retirement benefit is determined by multiplying your years of service and final average salary by 2.7 percent.
Dear Benny
When is the best time to retire?
There isn’t universally a perfect time to retire; it’s ultimately a personal decision for each member to make. Many individuals opt to retire in March or before April 1st simply to qualify for the Cost-of-Living Adjustment (COLA) for that year.
Dear Benny
I’m a new County of Orange government employee, and heard about the pension plan offered here. Could you explain what a pension plan is and how it differs from a 401 (k)?
Let’s demystify the jargon and break down the difference between a Defined Benefit Plan (DB or pension) and a Defined Contribution Plan (DC) in the simplest way.
Dear Benny
I read that the COLA is based on the CPI from the prior year, and the COLA is set for 3.5%. However, it said that the COLA will actually only be 3% with the remaining 0.5% going into the retiree's COLA bank. Why isn't the full 3.5% given to recipients?
The 3% limit is outlined in Government Code section 31870.1
In short, a COLA Bank is a reserve where any amount exceeding the 3 percent limit in COLA adjustments is saved for later use.