The SCERA Pension Plan is a 401(a) qualified defined benefit plan funded by three sources: the employee, employer, and investment earnings of the retirement fund.
An employee's pre-tax contribution is a percentage of the employee's gross pay.
The funds in your defined benefit retirement plan are invested by SCERA on a pooled basis, which means that you, as an individual are not affected by investment performance.
A defined benefit plan promises the member with a guaranteed lifetime benefit* as well as certain benefits for designated beneficiaries upon the member's death.
This differs from a defined contribution plan such as a 457 or 401(k) plan, in which you make the investment decisions and bear the associated risks. In those types of plans, your benefit payments stop when the money in your individual account is exhausted.
*Certain eligibility rules apply.