Post Employment Program (PEP)

The Post Employment Program (PEP) provides employees who are ending employment with the County with the opportunity to save money on taxes. To qualify for this program, the employee must have at least 5 years of service in a regular position and be a member of one of the following bargaining units:  Management, Unrepresented, Confidential, LIUNA, SEIU, RCDDAA, and LEMU.  When the employee separates from the County, their leave balances are contributed to the Post Employment Program.  Instead of having the amounts paid directly to the employee and taxed at the higher supplemental rate, these funds are deposited into a tax-deferred account for the employee.  For specific guidelines related to your bargaining unit, please click on the link below.

LIUNA and SEIU employees must have at least 5 years of service and retire to participate in this plan.

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Post Employment Program

The Post Employment Program (PEP) gives employees a unique way to save taxes on their leave balance payouts. Participation in the PEP program is required.

Post Employment Program (PEP) for LIUNA and SEIU employees consists of the VEBA Health Savings Plan which is a health reimbursement plan that provides participants with post-employment health expense reimbursement that may be used for qualified medical, dental, or vision out-of-pocket expenses. This plan reimburses you for any medically necessary health care expenses that you, your spouse, or your eligible dependents incur that are not reimbursable by insurance. Eligible expenses are governed by the IRS Code Section 213(d) and are outlined in IRS Publication 502. Contributions, investment earnings, and distributions from the VEBA Health Savings Plan are exempt from state and federal income taxes, and exempt from social security and medicare taxes (and are not counted toward social security earnings).

Post Employment Program (PEP) for Management, Confidential, Unrepresented, DDAA, and LEMU employees consists of two options the Special Pay Plan and the VEBA Health Savings Plan. The Special Pay Plan which is a qualified 401(a) plan that provides participants with an opportunity to contribute their eligible leave balances into a retirement plan that provides tax shelter on contributions and income earnings until the participant withdraws the funds in lump-sum or periodic payments. The VEBA Health Savings Plan is a health reimbursement plan that provides participants with post-employment health expense reimbursement that may be used for qualified medical, dental, or vision out-of-pocket expenses. Contributions, investment earnings, and distributions from the VEBA Health Savings Plan are exempt from state and federal income taxes, and exempt from social security and medicare taxes (and are not counted toward social security earnings).

Who is Eligible?
Your leave payout will be contributed to the Post Employment Program (PEP) if you meet the following eligibility criteria:
  • LIUNA and SEIU - At least five years of service with the County of Riverside in a regular position and retiring.
  • Management, Confidential, Unrepresented, DDAA, and LEMU - At least five years of service with the County of Riverside in a regular position.
Leave balances subject to the Post Employment Program (PEP):
  • LIUNA and SEIU - Vacation Leave, Extra (or “X”) Vacation, Annual Leave, and Sick Leave. Compensatory Leave and Holiday Leave may not be contributed to the PEP and will be paid out to employees as cash, or if you wish to defer taxes on this leave payout, you may elect to defer this payout to the 457 Deferred Compensation Plan, subject to the maximum limits set by the IRS
  • Management, Confidential, Unrepresented, DDAA, and LEMU - Vacation Leave, Holiday Leave, Annual Leave, Extra (or “X”) Vacation Leave, and Sick Leave. Compensatory Leave may not be contributed to the PEP and will be paid out to employees as cash. If you wish to defer taxes on this leave payout, you may elect to defer this payout to the 457 Deferred Compensation Plan, subject to the maximum limits set by the IRS.
Forms you will need to complete:
You will need to complete the Post Employment Program Election Forms. Contact your Department Human Resources Representative to obtain these forms.
Where to get additional information:
Retirement Preparation and Post Employment Program Workshops are available to assist you in understanding the Post Employment Program. The workshops are for all employees in a regular position who plan to retire within the next year. A County of Riverside Retirement Specialist will meet with small groups of employees, bargaining unit specific, and provide them with important retirement benefit information. This is a terrific opportunity to obtain answers to your basic retirement questions. Topics include an overview of leave accrual payouts, pre-retirement cash-outs, CalPERS retirement allowance estimate request, CalPERS service retirement election application, cost of living adjustments, healthcare options, VEBA Health Savings Plan, 457(b) Deferred Compensation Plan, and the 401(a) Money Purchase Plan.
If you are interested in attending a live workshop in your area to learn about your retirement plan options, you must enroll online at COR Learning Center Keep in mind that these meetings are bargaining unit specific; please be sure to enroll in the workshop pertaining to your specific bargaining unit.

Download the PEP brochure for Management, Confidential, Unrepresented, DDAA and LEMU employees

Download the PEP brochure for LIUNA and SEIU employees

Find a Retirement Planning Workshop to attend in my area COR Learning Center

Download the LIUNA/SEIU PEP Changes Notice