LACERS Retirement Options: Payments, Refund and Buyback

Updated October 2, 2026. Quick answer: A LACERS retiree chooses between a Cash Refund Annuity and a slightly larger Life Annuity, and a retiree with an eligible spouse or domestic partner gets a 50% lifetime Continuance funded in part by member contributions. A larger Continuance cuts the monthly allowance, and the cut is permanent even if the partner dies first or the marriage ends. A member who leaves can keep contributions on deposit or take a refund that gives up other Plan benefits. Tier 1 and Tier 3 differ on final compensation, retirement factors and the COLA cap (3% versus 2%).

More on public pension systems, topic by topic: LACERS service credit purchases, LACERS early service retirement and LACERS retirement payment options.

Los Angeles sworn fire and police members belong to a separate city system with its own rules: LAFPP retirement decisions.

Which Los Angeles system this page covers

This page covers LACERS, the Los Angeles City Employees’ Retirement System, whose Tier 1 plan description names its sponsor as “Employer Sponsoring the Plan: City of Los Angeles”. It is a different system from LACERA, the “Los Angeles County Employees Retirement Association”, which that document mentions only as a partner in a health reciprocity arrangement. LACERA has its own page at LACERA retirement decisions (a different Los Angeles County system). Nothing here describes CalPERS or any other California system.

LACERS has two tiers in the documents read. The Tier 1 plan description says “All City employees who become Members of the Plan on or before February 20, 2016, shall be Members of Tier 1.” Where the two tiers differ, this page states each tier’s rule with its own source and does not blend them.

The statements added below set the plan descriptions beside the Los Angeles Administrative Code, Division 4, Chapter 10, as restated by Ordinance No. 182629 for Tier 1 and as added by Ordinance 15-1423 for Tier 3. Later ordinances were not read because the official online code could not be retrieved, so check a current amendment before relying on any rule here.

The date rule has exceptions. Ordinance 15-1423 says: “Effective February 21,2016, and ongoing, every employee shall become a member of Tier 3 of the Retirement System on the first day of employment in a position with the City in which he or she is not excluded from membership pursuant to the provisions of Subsection (c) of this section, unless he or she qualifies for Tier 1 membership pursuant to the exceptions to Tier 1 membership set forth in Subsection (b).” It also says: “A former Tier 1 member who returns to membership in the Retirement System on or after February 21,2016, shall return to membership in Tier 1 if he or she has pre- February 21,2016, contributions that remain on deposit with the Retirement Fund on the date he or she begins City service in a position in which he or she again becomes eligible for membership in the Retirement System.” And: “Former members may not qualify to return to Tier 1 membership under this paragraph by making back contributions or redeposits of contributions after re-entry into City service.”

The first decision: Cash Refund Annuity or Life Annuity

Both plan descriptions open the payment-option section with the same instruction: “ALL RETIREES MUST CHOOSE ONE OF THE FOLLOWING”. For the Cash Refund Annuity, Tier 1 says “any unused contributions remaining after your death will be paid to your beneficiary”, and Tier 3 uses the same words. For the Life Annuity, Tier 1 says “you will receive a slightly larger monthly Retirement Allowance”, but “you give up the right to have any unused contributions refunded to a beneficiary”. It adds: “No contributions will be refunded when you and any eligible Survivors die.” The Tier 3 description is identical in substance.

The instruction to choose is the plan description’s. Section 4.1016 says: “Any member or the survivor of a deceased member who is eligible for a retirement allowance under the provisions of this Article may, in lieu of the annuity payment calculated on the basis of the refund of unused contributions, elect to receive an annuity payable only during the life or lives of the persons covered by the option with no payment due upon the death of the last survivor on account of unused contributions.” And Section 4.1010(c)(2) says: “Upon the death of a retired member or upon the death of all of the member’s survivors to whom a retirement allowance was paid, the unused contributions and any accrued but unpaid retirement allowance due the retiree shall be paid in the same manner as that provided in Subsection (a)(1) of this section for the payment of the accumulated contributions of a member who dies before retirement,” In the code, then, the refund annuity is the baseline and the life annuity is an election in lieu of it.

The plan descriptions print no percentage for how much larger the Life Annuity is, only the word “slightly”. The decision is therefore a trade between a somewhat higher check for life and a possible refund of unused contributions to a beneficiary. For the broader trade between a single-life payment and one that continues to a survivor, see single-life versus joint-and-survivor pension.

Survivor continuance: what it pays and who qualifies

The second decision depends on whether there is an eligible spouse or domestic partner. Both tiers describe a built-in benefit: “Part of your contributions pay for a 50% Continuance of your Retirement Allowance to your eligible Survivor.” For a retiree with an eligible partner the Tier 1 text sets “a lifetime monthly Continuance benefit to your eligible Spouse/Domestic Partner equal to 50% of your Retirement Allowance”, and Tier 3 says the same.

The optional continuance is not limited to a larger percentage. Section 4.1015(a) says: “(2) Lesser Percent (%) Continuance. Any other optional allowance which the retiree may elect to receive and which shall be authorized by the Board, payable throughout the balance of his or her life, with the provision that, upon his or her death, a specified percentage of such optional allowance selected by the retiree shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) his or her minor children, in the event there be no surviving spouse; or (iii) his or her dependent parents, in the event there be no surviving spouse or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years.” It also says: “In order for the person who is the retiree’s spouse or domestic partner at the time of retirement to be eligible to receive the continuance provided in this section, this person must be the surviving spouse or surviving domestic partner of the retiree at the time of his or her death.”

Eligibility is date-driven. The LACERS survivor page lists three tests for a spouse: “Married to the Member at least one year prior to the date of retirement”; “Married to the Member on the date of their retirement”; and “Married to the Member on the date of their death”. For a domestic partner it says “The domestic partnership must have been registered either with the State of California or with LACERS at least one year prior to the date of retirement”.

On how a domestic partnership is established, Section 4.1009 says: “Where a Declaration of Domestic Partnership is required to be on file with the Board for at least one (1) year, the Board may establish an earlier filing date than the actual date that the parties filed their Declaration of Domestic Partnership with the Board upon sufficient proof that the parties have an Affidavit or Declaration of Domestic Partnership on file earlier with the Personnel Department.” Section 4.1012 says: “The domestic partner of a retired member provided that at the time of the member’s retirement their domestic partnership had been established for at least one (1) year, and further provided that said domestic partner is either the surviving domestic partner or surviving spouse of the retired member at the time of his or her death.” The code also counts a State filing. Section 4.1001 defines a domestic partner as a person “who has formed a valid domestic partnership by filing a Declaration of Domestic Partnership with the Retirement System, as authorized in Section 4.1009 herein, or with the State of California, as authorized in Family Code Section 298.5,” or a person in a substantially equivalent union validly formed in another jurisdiction.

A computed example from an assumed $2,000 monthly allowance, not a LACERS figure: a Continuance equal to 50% of the allowance is 2,000 multiplied by 50%, a computed $1,000 a month for the survivor. A second computed example from the Tier 1 plan description’s own sample allowance of $1,749.60 (shown below): 50% of $1,749.60 is a computed $874.80. The plan descriptions give no table of reduction percentages for larger Continuances, so that figure has to come from LACERS.

What is permanent, and what can still change

The finality rule is stated in both tiers. Tier 3 reads: “You may provide a larger Continuance, but your monthly Retirement Allowance will be reduced to pay for the increased Continuance.” It then covers the two situations a reader might hope would reset it: “the reduction of your allowance is permanent and cannot be undone even if your Spouse/Domestic Partner dies before you do, or if your marriage or domestic partnership is terminated”. Tier 1 has the same rule.

A member with no eligible partner has separate choices. Tier 1: “You can choose to receive a slightly larger monthly allowance or a refund of the part of your contributions that would have funded your Continuance benefit.” A member may also name someone else for “a monthly Continuance that will be paid upon your death to anyone you select for that person’s lifetime”. The plan description adds that “This Continuance is funded solely by a reduction of your monthly allowance amount.” It also warns: “Internal Revenue Code provisions may limit the percentage of Continuance you may leave to a non-spouse.”

Naming a person carries a risk. If that person dies first, “Your Retirement Allowance will not be increased”, “You will not be allowed to name another beneficiary to receive a Continuance”, and “No Continuance payment will be made upon your death”. Tier 3 says the same three things.

The pages read do not state whether the Cash Refund or Life Annuity choice can be reversed after retirement begins, so confirm that with LACERS before signing.

Applying for retirement, and the deadlines

Tier 1: “You must file your application for Service Retirement benefits at least 30 days, and no more than 60 days, before your desired effective retirement date.” Tier 3 uses the same 30 to 60 day window. Both describe a waiver: “The 30 to 60 day filing requirement may be waived during a declared fiscal emergency or whenever a Member has received a layoff notice.”

The waiver is narrower than that sentence suggests. For Tier 1, Section 4.1005(d) says: “(1) In the event a member has been notified by the City that he or she will be laid off, an application that is filed less than thirty (30) days in advance shall be accepted provided it is filed with the Board while the member is still employed, specifies a retirement date prior to the member’s termination, and shall not be effective earlier than the date on which it is filed.” It also says: “(2) So long as the Resolution of Fiscal Emergency adopted by the City Council on May 18, 2009 (Council file No. 09-0600-S8) has been extended in successive periods of ninety (90) days each by written notification from the Mayor to LACERS and continues in effect, as amended or revised from time to time, and the Mayor determines that the City’s fiscal condition so warrants, an application less than thirty (30) days in advance shall be accepted provided it shall not be effective earlier than the date on which it is filed.” For Tier 3, Section 4.1080.5 says: “The application shall be filed not less than thirty (30) or more than sixty (60) days prior to the requested retirement date, except that in the event a member has been notified by the City that he or she will be laid off, the application may be filed less than thirty (30) days in advance and shall be accepted, provided it is filed with the Board while the member is still employed and specifies a retirement date prior to the member’s termination.”

For a member who left and is claiming a deferred retirement, timing matters more. The Tier 1 description warns: “Be sure to apply on or before the date you first become eligible to retire or you will lose benefits for which you were otherwise eligible.” It also says “Deferred Service Retirements are not retroactive to your first date of eligibility.”

How Tier 1 and Tier 3 differ

The two plan descriptions share their payment options but not their benefit math. For final compensation, Tier 1 reads “the monthly average of the last 12 months of compensation earned by your classification”, while Tier 3 reads “during the last 36 months of service or any other 36 consecutive months of service that you designate”.

What counts as pay is narrower than a plan description’s “compensation”. For Tier 1, Section 4.1001(b) says: “The final compensation of every member shall be calculated upon an annual compensation earnable of the member during his or her last twelve (12) months of service or during any other twelve (12) consecutive months of service which he or she shall designate.” It continues: “Compensation which is to be included in Final Compensation shall be limited to base salary and regularly assigned bonuses or premium pay.” And: “Compensation which shall not be included in the calculation of Final Compensation shall include, but not be limited to, overtime, daily and other non-regularly assigned bonuses, reimbursements, car allowances, uniform allowances, payments in lieu of benefits or cash-out of benefits and other forms of compensation.”

For Tier 3, Section 4.1080.1(b) says: “In calculating final compensation for the purposes of this article, compensation shall be limited to items of compensation designated as base salary by an applicable City ordinance or memorandum of understanding, and any items of compensation that are designated as pension based in an applicable memorandum of understanding or City ordinance.” It adds: “All other items of compensation shall be excluded from the calculation of final compensation.”

Tier 1 states “Retirement Factor of 2.16%” and Tier 3 states “Retirement Factor is 1.5%”, “Retirement Factor is 2.0%” and “Retirement Factor is 2.1%”. Tier 3 also states a ceiling: “RETIREMENT ALLOWANCE SHALL NOT EXCEED 80% OF FINAL COMPENSATION”. The reduction factors for retiring below age 55 are in an appendix table in each plan description, subject to change by ordinance.

The age reduction is not limited to retiring below age 55. For Tier 1, Section 4.1005(b) says: “(b) Early Retirement. A member shall be eligible to retire with an age-based reduced retirement allowance: (1) After reaching age fifty-five (55) with ten (10) or more years of continuous City service;” Section 4.1007 sets the reduction this way: “An age-based reduction shall be made by multiplying the retirement allowance by the factor set forth in the table below corresponding to the retiree’s age, taken to the completed quarter year.” The last row of that table reads “60 and over 1.00”. For the Tier 3 route with thirty years of service, Section 4.1080.5 says: “If the member is age fifty-five (55) or older at the date of retirement, his or her retirement allowance shall not be subject to reduction on account of age.”

The age examples in the table are not the only Tier 1 route, and each carries conditions. Section 4.1005 says: “(a) Full Retirement A member shall be eligible to retire with a full (unreduced) retirement allowance: (1) After reaching age fifty-five (55) with thirty (30) or more years of City service; (2) After reaching age sixty (60) with ten (10) or more years of continuous City service; (3) At age seventy (70) or older, regardless of length of City service.” It adds: “None of the service purchased under Section 4.1019 shall count toward establishing the minimum ten years of continuous City service required for retirement under this section.”

For Tier 3, every route requires continuous City service. Section 4.1080.5 says: “A Tier 3 member shall be eligible to retire at age sixty (60) or older with a retirement factor of two percent (2%), provided he or she shall have at least thirty (30) years of Service, including at least five (5) years of continuous City service.” It also says: “A Tier 3 member with thirty (30) or more years of service, including at least five (5) years of continuous City service, shall be eligible to retire prior to age sixty (60) with a retirement factor of two percent (2%).” And: “Service purchased under Section 4.1080.20 shall not count toward establishing the minimum five (5) years of continuous City service required for retirement under this section.”

The Tier 1 and Tier 3 ceilings differ. Section 4.1007(c) says: “Service retirement allowances granted pursuant to Subsection (a) of this section may never exceed a member’s “Final Compensation.”” For Tier 3, Section 4.1080.7 says: “In no event shall any Tier 3 retirement allowance exceed eighty percent (80%) of the member or former member’s final compensation, except where the allowance is based solely upon the annuity component funded by the retiree’s accumulated contributions and thus does not include a pension component.” It adds: “The eighty percent (80%) of final compensation limitation upon the retirement allowance set forth above, which is subject to one exception as noted, shall apply to the member or former member’s retirement allowance prior to any adjustments that may be required as a result of the purchase of an additional annuity, the provision for a continuance to a survivor, or any other election authorized in this section.”

The benefit formula, worked from the plan descriptions

Each description prints a sample. Tier 1: “Final Compensation $4,000 X Service Credit 20.25 X Retirement Factor 2.16% = Retirement Allowance $1,749.60”. Tier 3: “Final Compensation $4,000 X Service Credit 30.25 X Retirement Factor 2.10% = Retirement Allowance $2,541.00”. The Tier 3 description also prints an age-60 sample at the 1.50% factor with 10.25 years of service credit.

A recomputed check from those sample inputs, not an independent LACERS figure: Tier 1 is 4,000 multiplied by 20.25 multiplied by 2.16%, a computed $1,749.60 a month before taxes. Tier 3 at the 2.10% factor is 4,000 multiplied by 30.25 multiplied by 2.10%, a computed $2,541.00, and the age-60 case is 4,000 multiplied by 10.25 multiplied by 1.50%, a computed $615.00. A member’s own figure depends on actual final compensation, service credit and payment option, so request a LACERS estimate.

Leaving City service: refund, rollover or leaving contributions on deposit

A member who is not yet eligible for a service retirement has options. Under five years of Continuous Service, Tier 1 lists: “Leave your contributions on deposit with the Plan or Take a refund of your Member contributions and/or roll these funds over into another qualified retirement plan”. At five or more years: “Leave your contributions on deposit with the Plan until you are eligible for a Deferred Service Retirement”, or the refund and rollover choice again. The documents use the five-year Continuous Service mark as the dividing line, and the Tier 1 plan description refers to a “Deferred Vested Member”.

Five years is not the whole deferred-retirement test. Section 4.1006 says: “In order to be eligible for deferred service retirement, a former member’s Tier 1 contributions must remain in the Retirement Fund, and he or she must have five (5) or more years of continuous City service or satisfy the part-time employee exception set forth below.” It continues: “(1) Full Retirement. To retire with a full (unreduced) retirement allowance, the former member must be age 60 or older and ten (10) years must have elapsed since he or she first became a member or the former member must be age seventy (70) or older.” For Tier 3, Section 4.1080.6 says: “A former member shall be eligible for a full (unreduced) deferred service retirement allowance at age sixty-three (63), with thirty (30) years of continuous City service, provided that ten (10) years have elapsed since the first date of membership.”

Leaving the money in works like this. Tier 1: “Even if you terminate with less than five years of Continuous Service, you can leave your contributions plus interest on deposit with LACERS.” Contributions “earn interest based on the average rates of a five-year U.S. Treasury Note”. There is an outer limit: “you must withdraw your contributions plus interest by the time you reach age 70½, pursuant to Internal Revenue Code provisions/rules”. Tier 3 carries the same rules.

The age 70½ line is a mandatory-distribution rule, and an account without the service for a deferred retirement can be forfeited, with two routes to relief. Section 4.1004(b) says: “If such former member fails to file a written retirement application prior to attaining age seventy and a half (70 1/2), the Retirement System, pursuant to rules to be adopted by the Board of Administration, shall make such mandatory minimum distributions as are required by the Internal Revenue Code.” For Tier 3, Section 4.1080.4 says: “If a former member’s years of service are insufficient to qualify the former member for a deferred service retirement, and the former member fails to request a refund of contributions pursuant to Subsection (a) above within ten (10) years from the date his or her membership terminated or from the date he or she was last employed by the City, whichever occurs later, the former member’s accumulated contributions shall be forfeited to the Retirement Fund. The former member shall be relieved from such forfeiture, however: (1) upon returning to membership in the Retirement System, at which time said funds shall be returned to his or her individual account pursuant to rules to be adopted by the Board of Administration; or (2) upon making a valid claim for relief from forfeiture, as determined at the sole discretion of the Board of Administration.” Section 4.1004 sets the same ten-year forfeiture and the same two forms of relief for Tier 1. It also says: “Contributions, however, shall not be refunded to a former member who is employed in any capacity by the City unless such a refund is permitted under federal law.”

The refund route, as Tier 3 states it: “You may take a refund of your Member contributions plus interest in your account”, and the member may “roll these funds over into another qualified retirement plan”. On what is excluded: “You are not entitled to the City’s contributions because they are not part of your individual account.” On what it ends: “If you take a refund of your contributions or roll the funds over, you give up your right to any other benefits from the Plan.” Tier 1 says the same. A member who returns after withdrawing may restore credit: “you can regain the Service Credit you earned during your prior City employment by re-depositing your contributions plus interest”. For the general question of cashing out versus leaving a pension alone, see pension refund versus leaving it.

The Tier 1 description says that a member who withdraws funds and re-enters City service on or after February 21, 2016 “will become a Member of Tier 3”.

Taxes on a refund and on the monthly allowance

Contributions go in before tax: “Contributions are deducted from your paycheck on a pre-tax basis” in Tier 3, and the Tier 1 text adds that “prior to January 1, 1986, they were post-tax contributions”. On a refund, “LACERS is required to withhold taxes on any amount you receive as a refund for which you have not paid taxes unless your money is rolled over into another qualified retirement plan.” Tier 3 also warns: “Based on your age when you separate from City Service, you may be subject to additional taxes and/or penalties.”

On the monthly allowance, the Tier 1 plan description says “Disability and Service Retirement Allowances are considered taxable income under federal law and, if you reside in California, under California State law”. How California treats public pensions is covered on California retirement taxes and does California tax pensions.

Buying service credit

Purchases can raise the number that feeds the formula. The LACERS page says: “If you are eligible to purchase Service Credit, doing so may count toward your retirement eligibility and may increase your retirement allowance and health subsidy.” On timing: “the processing time for service credit purchase applications is 4 to 11 months”.

The code limits what a purchase can do. Section 4.1019(c) says: “Buy back credit shall not be used to meet minimum qualification for service retirement, disability retirement or vested retirement or to qualify for the Family Death Benefit Plan, or to qualify for or increase health and dental insurance premium subsidies.” Section 4.1020(c) says: “The service credit purchased under this section shall be treated the same as service credit under LACERS, except that it shall not be taken into account for establishing the minimum five-year service requirement for service retirement, disability retirement or vested retirement.” And Section 4.1005 says: “None of the service purchased under Section 4.1019 shall count toward establishing the minimum ten years of continuous City service required for retirement under this section.”

The listed categories are Government Service Buybacks (Tier 1 and Tier 3), which cover “Full-time employment with other governmental entities” and “Uncompensated maternity leave from the City”; Public Service Buybacks, marked “Tier 1 Members Only”, for “Approved leaves without pay from the City” or “Service Credit lost to a Divorce or Dissolution of Domestic Partnership”; Back Contributions, for “Part-time or temporary City employment when not a LACERS member” and “Workers’ Compensation temporary disability time”; and Re-deposits, for “Re-depositing previously withdrawn contributions after returning to City employment”.

Each category carries limits in the code. For an uncompensated leave, Section 4.1019 says: “A member may buy back credit for one or more periods of uncompensated leave, except, however, a minimum of six (6) months of leave in the aggregate shall be purchased.” And: “Total buy back credit purchased shall not exceed the member’s actual City Service at the time the buy back is concluded.” For service with another governmental entity, Section 4.1020 says: “Members may not buy back credit for periods of service for which they are currently eligible or will become eligible to receive a retirement benefit from a prior plan.” And: “Buy back credit for one or more periods of full-time service with another governmental entity prior to entrance or re-entrance into the Retirement System may be purchased, except, however, such purchase shall be limited to not less than six (6) months of uninterrupted service from a single entity.”

Service credit lost to a divorce is not a public service buyback. Section 4.1032(f)(2) says: “If a nonmember elects to receive a Separate Account Allowance, the member may purchase service credit not to exceed the years of service credited to the nonmember.” It adds: “The purchase of this service credit shall be the full actuarial cost and subject to rules adopted by the Board of Administration.” And: “Separate accounts cannot be established by a court order entered after the member’s retirement.”

Federal law can limit a purchase: “A service purchase that does not comply may be disallowed in whole or in part by LACERS.” The pages read do not print a cost formula or a price, so a quote has to come from LACERS before a purchase is weighed against its benefit. See pension buyback calculator for the general method.

The code does print how a purchase is priced, although the plan descriptions do not. Section 4.1019 says: “Such agreement shall provide that the member contribute an amount equal to the present value of the liability incurred by the System in crediting the service based upon actuarial assumptions in effect at the time the agreement is entered into or amended and the projected retirement date contained in the agreement.” Section 4.1018 says: “The amount of the contributions to be re-deposited shall be the sum of the amount of accumulated contributions withdrawn, plus all of the regular interest which would have been credited thereon had said accumulated contributions remained on deposit in the fund to the date the member re-deposits such contributions either by a single lump sum payment or executes an agreement to pay such re-deposit in installments.” For back contributions, Section 4.1017 says: “The back contributions to be paid shall be in an amount equal to all of the contributions which he or she would have made to the Fund had he or she been a member during such period, together with all regular interest which, had he or she so made the same, would have been credited thereon prior to the date of such payment;” A quote from LACERS is still the figure to rely on: the code defines regular interest as “Interest credited to the individual account of each member as provided in Charter Section 1162(b)”, and that Charter section was not read here.

Cost-of-living adjustments after retirement

For the annual COLA, Tier 1 says “it may not exceed 3% annually”, and under the banking rule “If the CPI increase in any year is less than 3%, previously banked amounts are used to provide you with a larger increase, up to the 3% maximum for that year.” Tier 3 says “it may not exceed 2% annually”.

A computed example from an assumed $2,000 monthly allowance, not a LACERS figure: a full-year COLA at the Tier 1 cap of 3% is a computed $60 a month, and at the Tier 3 cap of 2% it is a computed $40 a month, if the Los Angeles area CPI met or exceeded the cap that year.

The Tier 1 plan description uses a COLA in its own deferred-retirement sample: “If you retire at age 55, your allowance would start at $1,850, but would grow to approximately $2,145 by age 60 (assuming a maximum annual cost of living adjustment of 3%).” A recomputed check: $1,850 grown by 3% a year for 5 years is a computed $2,145, which matches the sample. Confirm any early-retirement reduction with LACERS.

What the IRS adds on tax

A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of LACERS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. Both LACERS plan descriptions say a refund of member contributions can be rolled over into another qualified retirement plan, and that LACERS is required to withhold taxes on a refund that is not rolled over. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.

On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.

What this page could not settle

• The pages read do not state how much larger the Life Annuity is than the Cash Refund Annuity; they say only “slightly” larger.
• The pages read do not state the reduction percentage for a Continuance larger than 50%; the plan descriptions say the reduction is permanent but give no table.
• The pages read do not state whether the Cash Refund or Life Annuity choice can be changed after the first payment.
• The pages read tie options to five years of Continuous Service, and the Tier 1 plan description refers to a “Deferred Vested Member”; a member should confirm vesting and eligibility with LACERS.
• The plan descriptions and web pages read do not state a price or formula for service credit purchases or the interest rate applied to a re-deposit; the Administrative Code states the pricing rules (see the Buying service credit section above), and the Board’s interest-rate rules were not read.
• The pages read do not state whether a spouse must consent to a refund or to the choice of the Life Annuity.
• The pages read do not state any partial lump sum or DROP-type option; the only lump sum described is the refund of member contributions.

LACERS topic pages

Each row links to the page that reads one topic in the LACERS member documents: the topic, then the summary that page carries.

Common mistakes

• Treating LACERS as LACERA or CalPERS; LACERS is the City of Los Angeles system with its own plan descriptions.
• Choosing a larger Continuance and assuming it can be undone; both tiers say the reduction is permanent even if the partner dies first or the relationship ends.
• Naming a non-spouse for a Continuance without noting that no replacement can be named if that person dies first.
• Taking a refund and assuming other Plan benefits survive; both tiers say a refund or rollover gives up other Plan benefits and excludes the City’s contributions.
• Applying Tier 1 numbers to a Tier 3 member: final compensation, retirement factors and the COLA cap all differ.

Related on this site: California retirement taxes, does California tax pensions, LACERA retirement decisions (a different Los Angeles County system), single-life versus joint-and-survivor pension and public pension retirement decisions by system.

Sources

• Los Angeles City Employees’ Retirement System, Survivor Benefit Options: https://www.lacers.org/survivor-benefit-options
• LACERS, Service Credit Purchases: https://www.lacers.org/service-credit-purchases
• LACERS, Tier 1 Benefits Summary Plan Description: https://www.lacers.org/sites/main/files/file-attachments/a_lacers-tier1-benefits-summary-plan-description.pdf?1768507961
• LACERS, Tier 3 Benefits Summary Plan Description: https://www.lacers.org/sites/main/files/file-attachments/a_lacers-tier3-benefits-summary-plan-description.pdf?1768507923
• IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
• IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558

Sources: the primary documents linked above, read on October 2, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.