What is the effect of the requirement that ARC purchases be made with before-tax dollars?
Like your regular, payroll-deducted retirement contributions, ARC contributions must be made with before-tax dollars. The effect is that the funds you pay for ARC will not be subject to income tax withholding when paid to SamCERA and your gross taxable income will be reduced by the amount of your ARC contributions. As with your regular SamCERA retirement benefit, your ARC benefit will be subject to income taxation when paid by SamCERA to you in retirement.
