“Alameda” Decision Update
November 16, 2022
Active and Deferred Members affected by the “Alameda” decision:
- Contribution and Interest refund and
rollover checks on Alameda pay items for Active and Deferred
members will start to be received the week of November 21,
2022 to each member’s address of record, and will be
processed via hard copy checks to the member directly.
- If a member selected the rollover option, the check is made out to their institution of choice (in the member’s name); so members will need to deliver the checks to their rollover institution along with any required forms their provider may require.
- If an Active or Deferred member did not return their Election Refund form per instructions provided in the letter, these members are receiving a refund by default per details provided in the letter previously sent to all impacted members.
- Proper taxes will be withheld from refunds (not rollovers).
- Members issued a refund or rollover from OCERS will be issued a 1099R for 2022 with the amount of the refund or rollover issued.
- Active members, with a refund less than $75, will be receiving their refunds from their employers by December 31, 2022. The refund dates will vary depending on their employer.
Recently Retired Members (Retired between August 1, 2020 and present) affected by the Alameda decision:
- If a member retired after August 1, 2020, their benefit has already been reduced for the Alameda pay items prior to receiving their first benefit payment and they will not need a recalculation; however they may be due a refund.
- As of November 14, 2022, OCERS has mailed a letter along with a refund form to these recently Retired members (Retired members who have no recalculations due on their accounts) who have refunds greater than $200.00. They will be provided the ability to request a rollover or a direct refund with the form included with this letter.
- Members with refunds for $200 or less will receive a refund. No taxes will be withheld on these refunds per IRS rules.
- Members will be issued a 1099R for 2022 with the amount of the refund or rollover issued.
Retired Members (Retired prior to August 1, 2020) affected by the Alameda decision:
- The benefit recalculation process has started for retired members affected by the Alameda decision who require a recalculation. This process is anticipated to continue throughout the remainder of the year and the following year (2023).
- There are more than 600 members in this category who OCERS is working to recalculate.
- Each of these members will receive a letter prior to their benefit being reduced with their revised benefit amount and if they have a contribution and interest refund or a benefit overpayment due.
- Quarterly update letters will be mailed to each member’s address of record.
- OCERS is working on these recalculations starting from the members with the highest estimated benefit reduction to the members with the lowest benefit reduction. This process started in September of 2022 and will take until at least the end of 2023.