All permanent employees automatically become members of the San Luis Obispo County Pension Trust (SLOCPT) effective with their first day of employment. Becoming a Member of SLOCPT is a valuable component of the employees' compensation package.
SLOCPT is an independent pension trust and is known as a “defined benefit plan” under section 401(a) of the Internal Revenue Code. SLOCPT guarantees a lifetime monthly retirement benefit to eligible Members based on a set formula, which includes years of service (pension trust service credit), age at retirement, and average monthly final compensation.
Funding for SLOCPT comes from Member contributions, employer appropriations, and most importantly investment earnings on those funds. Members make bi-weekly, pre-tax contributions to SLOCPT through automatic payroll deductions. Contribution rates are determined by age of entry into SLOCPT, employer, tier placement, and bargaining unit. Accumulated contributions are held to fund future retirement benefits and are not available for withdrawal unless a member separates from employment.
More information can be found here.