Updated October 7, 2026. Quick answer: A member of the Contra Costa County Employees’ Retirement Association chooses between the unmodified allowance, which pays the highest monthly benefit and 60 percent to an eligible spouse, and Options 1 through 4, which reduce the monthly benefit to leave something for a survivor. The choice cannot change after the first payment, and Options 2, 3 and 4 also lock in the named beneficiary. A refund returns the member’s contributions and interest only, ends any CCCERA benefit, and carries mandatory 20% federal withholding unless rolled over directly. Service credit can be bought.
Employees of other California counties belong to separate county systems with their own rules: Tulare County TCERA retirement decisions, StanCERA retirement decisions, SJCERA retirement decisions, SBCERS retirement decisions and Imperial County retirement decisions.
What this page covers and what it does not
This page works from documents published by the Contra Costa County Employees’ Retirement Association (CCCERA): its Retirement Benefits Handbook for PEPRA general members, the matching handbook for members who joined before 2013, two Board of Retirement papers on optional settlements dated 2012, and the system’s web pages. No handbook prints an edition date, so the pages are those read on October 7, 2026, and any figure that is not CCCERA’s is labeled as a computed example from assumed inputs.
The PEPRA handbook covers members hired on or after January 1, 2013: “PEPRA General members accrue service in Tiers 4 and 5. Benefits are calculated under the 2.5% at 67 benefit formula.” The other handbook is written for “Active GENERAL members with membership dates before January 1, 2013”. Safety members have their own handbooks, which this page does not use.
State taxes are covered on California retirement taxes and does California tax pensions. The system-by-system view is public pension retirement decisions by system.
When a pension can start and what the formula pays
The handbook sets the eligibility test for PEPRA general members: “PEPRA General members are eligible to retire at age 52 with at least five years of retirement service credit, or at age 70 regardless of service.”
On the formula, the handbook says “Service retirement benefits are calculated using three important variables”, which are highest final average salary, years of retirement service credit and a retirement age factor, multiplied to give a monthly pension. The age factor works like this: “For example, 2.5% at 67 means if you retire at age 67, your benefit will be calculated using 2.5%, or .025.”
A computed example from assumed figures, not CCCERA figures: with an assumed final average salary of $6,000 a month, an assumed 20 years of retirement service credit and the 2.5% factor at age 67, the formula gives $6,000 times 20 times 2.5%, a computed $3,000 a month. That is the unmodified allowance, before any survivor reduction. The handbook’s equation ends in a monthly pension without stating that the salary figure is monthly, so that is an assumption of the example.
The election: five payment methods and one permanent choice
Every retirement application carries a choice of payment method: “The CERL has five options (methods of disbursing your retirement benefit payments).” The web page adds: “Retirees must preselect their benefit payment option at the time of their application.”
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Unmodified | The highest monthly benefit | 60 percent of the allowance to an eligible spouse or partner for life; if none, to unmarried children; if neither, remaining contributions and interest as a lump sum |
| Option 1 | A reduced monthly benefit | Any remaining accumulated contributions as a lump sum; no monthly continuance, and possibly nothing left |
| Option 2 | A reduced monthly benefit | The same reduced benefit for the beneficiary’s lifetime, possibly a lower percentage if the beneficiary is much younger |
| Option 3 | A reduced monthly benefit | 50 percent of the reduced benefit for the beneficiary’s lifetime |
| Option 4 | A reduced allowance | An allowance to more than one named beneficiary, with amounts set by the system’s actuary |
No percentage of reduction is published for any option. The handbook says “Therefore, without actual data, it is impossible to estimate what a given benefit may be for any option.” For the general trade between a single-life pension and a survivor pension, see single-life versus joint-and-survivor pension.
What each option does for a survivor
The unmodified allowance is the baseline. For a service retirement (the pre-2013 handbook treats Tier 2 differently), an eligible surviving spouse or registered domestic partner “will receive 60 percent of the member’s allowance for life”, if one of two tests is met. The first: “You have been married/registered with the California Secretary of State for at least one year prior to the member’s retirement”. The second: “At the time of the member’s death, the spouse/domestic partner is at least 55 years old and has been married/registered for at least two years prior to the date of death.” Without a surviving spouse: “If there is no surviving spouse, the 60 percent continuance is paid to unmarried children until they attain age 18, or age 22 if enrolled full-time in an accredited school.” With neither spouse nor child, the web page says “If you do not have either an eligible spouse or dependent children, the balance of your contributions and interest remaining in your retirement account will be paid in a lump sum to your designated beneficiary.”
Option 1 pays a lump sum rather than a monthly survivor benefit. “Option 1 pays a reduced monthly benefit until the death of the member, and then pays any remaining accumulated contributions to the member’s estate or survivor in a lump sum.” The handbook warns: “Depending on the member’s lifespan, there may not be any contributions left at the time of death for a survivor to collect.”
Option 2 continues the benefit. “Option 2 reduces your monthly retirement benefit, but after your death, pays the same reduced benefit to your named beneficiary for the rest of their lifetime.” One caveat: “In cases where the beneficiary is someone significantly younger than the member, the continuance may be less than the member’s benefit. However, you will be informed of the continuance percentage prior to electing the option.”
Option 3 continues half. “Option 3 reduces your monthly benefit, but after your death, pays one-half of the reduced monthly retirement benefit to your beneficiary for the rest of their lifetime.”
Option 4 is the route for more than one survivor. “Option 4 allows you to make an election to receive a reduced retirement allowance during your lifetime, and to name more than one beneficiary who would receive an allowance for their lifetime(s) upon your death.” On cost: “Additional estimate requests requiring actuarial services to determine the benefit amount(s) and qualifications will be charged at $500.00 per verification.” Survivor benefits can interact with other government pensions, covered on survivor benefit with a government pension.
How the IRS limit can shrink a survivor percentage
The Board’s slides explain a federal limit that applies when the beneficiary is not the spouse. “The maximum continuance percentage is 100% if the only beneficiary is the member’s spouse, regardless of age, or if the beneficiary is not more than 10 years younger than the member” The steps: “The “age difference” is the age of the member at retirement minus the age of the youngest beneficiary”; and “The “adjusted age difference” is the age difference minus the number of years the member is less than 70”.
In the slides’ Example 1 a member retires at 65 with a youngest beneficiary aged 35. The age difference is 65 minus 35, a computed 30. The member is 5 years younger than 70, so the adjusted age difference is 30 minus 5, a computed 25, and the slides’ table gives a maximum continuance of 66%. In Example 2, a member of 51 and a beneficiary of 27 have an adjusted age difference of 5, which gives 100%.
| Slides example | Member’s age | Youngest beneficiary’s age | Adjusted difference (computed) | Maximum continuance |
|---|---|---|---|---|
| Example 1 | age 65 | age 35 | 25 | 66% |
| Example 2 | age 51 | age 27 | 5 | 100% |
A computed example from an assumed $2,400 reduced monthly benefit, not a CCCERA figure: a non-spouse beneficiary capped at 66% could receive at most 66% of $2,400, a computed $1,584 a month. The handbook says the member is told the continuance percentage before electing.
What is irrevocable, and the spouse’s role
The handbook says “Your option choice cannot change after your first retirement payment is made.” On the retirement itself: “You can cancel your application to retire anytime during the retirement process. However, you cannot cancel your retirement decision after you have cashed your first benefit check.” The statements are worded differently, one at the first payment and one at the first check cashed, so the exact cutoff is worth confirming with CCCERA.
The beneficiary rules differ by option. “If you choose the Unmodified Option, or Option 1, you may change your beneficiary at any time you wish, throughout your retirement. If you choose Option 2, 3, or 4, you may NOT change your beneficiary, even if the named person(s) dies before you.” On the spouse’s role: “by law, your beneficiary must be your spouse or registered domestic partner unless you file a Spousal Waiver (Form 303), or complete Section 5 of the Beneficiary Designation Form (Form 102).” Whether to waive is a decision to settle with CCCERA before applying.
Lump sums, DROP and partial payouts at retirement
The pages read describe three lump sums around a retirement: the Option 1 remainder, the unmodified lump sum when there is no eligible survivor, and a death payment, where the handbook says that upon the death of any member who is receiving a retirement allowance, “a lump sum benefit of $5,000 is paid to the member’s beneficiary or estate, provided there are sufficient assets in the Post Retirement Death Benefit reserve.” They describe no deferred retirement option program and no partial lump sum taken at retirement, so no figure for either appears here.
One alternative to a level pension is described. “The Temporary Annuity Option is designed to coordinate your retirement allowance with benefits receivable from Social Security, so your total retirement benefits remain relatively level before and after age 62.” The general method for weighing a lump sum against a monthly benefit is on pension lump sum versus monthly annuity break-even.
Leaving before retirement: keep the membership or take a refund
A member who leaves a CCCERA employer has two paths. “If you formally terminate you can either take a refund or defer your membership.” On vesting: “Members of CCCERA who have at least five years of retirement service credit are vested in the system.”
On deferring: “If you have five or more years of service credit and leave your funds on deposit until you are age 52, you will qualify to begin receiving a monthly retirement benefit when you apply for retirement.” If nothing is declared: “If you leave membership with CCCERA, and do not declare whether to defer or to take a refund, CCCERA will default your choice to deferred membership.”
A refund closes the account. “Taking a refund means you close your retirement account by withdrawing or rolling over all of the contributions and interest you made while a member of CCCERA. You will no longer be entitled to a benefit from CCCERA, even if you are disabled in the future.” What it contains: “Your refund will not include the contributions made by your employer on your behalf. Your refund will be your contributions and interest, only.” The framework for the choice is on pension refund versus leaving it.
How a refund is paid and taxed
The handbook explains the tax side briefly. “if your contributions were made with pretax dollars, you will now owe income tax on the distribution, unless you make a direct rollover of the funds into another tax-deferred retirement account, such as an IRA.” “The tax withholding on refunds, by federal law, is a mandatory 20%, since refunds are considered distributions.” “State tax withholding of 2%, to cover state income tax, is optional.” On rollovers: “Employer plans are not required to accept rollovers.” The handbook then gives as an example that “CCCERA only accepts 457 plan (deferred compensation) trustee-to-trustee transfers” and points to CCCERA for what a re-deposit will cost, so that sentence concerns money coming into CCCERA, not a refund going out. Mechanics are on 20% withholding on a pension lump sum.
A computed example from an assumed $10,000 taxable refund paid directly to the member, not a CCCERA figure: the mandatory 20% federal withholding would be a computed $2,000, leaving $8,000 in cash. A member who then wanted to roll over the full $10,000 would need to find the withheld $2,000 from other money. The optional 2% state withholding would be a computed $200 on the same amount.
Buying service credit
Service credit multiplies the pension formula, so a purchase can raise the benefit. The handbook lists several categories of purchasable time. One of them: “If you were employed by a public service agency prior to your membership with CCCERA, you may be eligible to purchase this time with CCCERA, if your former public employer does not offer reciprocity with CCCERA, or accept re-deposits of contributions that were refunded to you at the time of termination from their plan.”
The handbook gives two cost categories. One: “You must pay your contributions and interest that would have accrued during the time periods you are purchasing”. The other: “You must pay your contributions plus your employer’s contributions and interest that would have accrued on both amounts.” On deadlines: “All payroll deduction service contracts must be paid in full by your retirement date, or date of termination. However, you may be able to purchase service credit with an after-tax lump sum payment, up to 120 days after your retirement date.”
Not every purchase counts toward the age and service tests. “All service credit purchases may not count toward the number of years you need to be eligible to retire, only toward the amount of your retirement benefit amount.”
A computed example from assumed figures, not CCCERA figures: at an assumed final average salary of $6,000 a month and the 2.5% factor at 67, one purchased year adds $6,000 times 1 year times 2.5%, a computed $150 a month. If that year cost an assumed $20,000, the recovery period would be $20,000 divided by $150, a computed 133 months of benefit payments, before taxes and any survivor reduction. The actual price comes from CCCERA’s estimate. The general method is on the pension buyback calculator page.
Cost-of-living adjustments
CCCERA’s web page states: “your post-retirement Cost of Living Adjustment (COLA) may be limited to either 3% (or 4% for disability retirements) or 2% per year depending on the Memorandum of Understanding (MOU) or employer resolution that covers you.” The documents give limits, not a guaranteed yearly increase.
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 CCCERA’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”. CCCERA’s handbook says a refund can be paid out or rolled over, and that mandatory federal withholding applies to refunds, since they are distributions. 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” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. 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.
Who to ask before deciding
The handbook says of its counselors: “Our staff is trained to offer assistance on the retirement process and beyond, but we are not tax professionals or financial planners. We encourage consultation with your financial advisor prior to making decisions that may affect your future security.”
What this page could not settle
- The pages read do not state the size of the monthly reduction for Options 1 through 4.
- The pages read do not describe a deferred retirement option program or a partial lump sum at retirement, and do not state the size of the Temporary Annuity Option increase.
- The pages read do not state the interest rate credited to contributions or a price for any service credit purchase or redeposit.
- The handbook says a deferred member must retire or withdraw by April 1 after turning 72, while a footnote gives age 73 for those reaching it on or after January 1, 2023; confirm the date with CCCERA.
- The handbook’s service category table did not extract with a clear column layout, so which purchases count toward eligibility is left to the sentences quoted.
- Neither handbook prints an edition date, and the 2026 cost-of-living announcement and Retirement Law Book 2026 were not read.
Common mistakes
- Electing an option and assuming it can be changed later; the handbook says the option choice cannot change after the first retirement payment is made.
- Choosing Option 2, 3 or 4 and expecting to name a new beneficiary if the named person dies first; the handbook says the beneficiary cannot be changed even then.
- Taking a refund without realizing it ends any CCCERA benefit, excludes the employer’s contributions, and carries mandatory 20% federal withholding if paid to the member.
- Assuming a service credit purchase counts toward the age and service tests; the handbook says purchases may count only toward the amount of the benefit.
Related on this site: pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20% withholding on a pension lump sum, pension lump sum versus monthly annuity break-even, survivor benefit with a government pension, California retirement taxes, does California tax pensions and public pension retirement decisions by system.
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Answer againSources
- Contra Costa County Employees’ Retirement Association, Retirement Benefits Handbook: PEPRA General Member (no edition date printed): https://www.cccera.org/sites/main/files/file-attachments/pepra_general_handbook_0.pdf
- Contra Costa County Employees’ Retirement Association, Retirement Benefits Handbook: General Member, membership dates before January 1, 2013 (no edition date printed): https://www.cccera.org/sites/main/files/file-attachments/legacy_general_handbook.pdf
- Contra Costa County Employees’ Retirement Association, Optional Settlements, Board of Retirement educational presentation slides (April 11, 2012): https://www.cccera.org/sites/main/files/file-attachments/optionalsettlements_1.pdf
- Contra Costa County Employees’ Retirement Association, Optional Settlement 4 Policy A12-1 (adopted 5/2/2012): https://www.cccera.org/sites/main/files/file-attachments/a12-1_optional_settlement_4_policy_5-2-12_0.pdf
- Contra Costa County Employees’ Retirement Association, Retirement Options web page (cccera.org): https://www.cccera.org/retirement-options
- Contra Costa County Employees’ Retirement Association, Leaving Before Retirement web page (cccera.org): https://www.cccera.org/termination
- Contra Costa County Employees’ Retirement Association, Purchasing Service Credit web page (cccera.org): https://www.cccera.org/purchasing-service-credit
- Contra Costa County Employees’ Retirement Association, Retirement Tier Structure web page (cccera.org): https://www.cccera.org/retirement-tier-structure
- 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 7, 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.