Updated October 7, 2026. Quick answer: A San Mateo County Employees’ Retirement Association member retiring with a pension chooses one of six payment options (three for Plan 3). The unmodified option pays the full benefit and leaves a spouse 60%, while modified options trade a smaller benefit for survivor shares of 100%, 50% or a chosen percentage. The choice is irrevocable after retirement. A refund of contributions is all or nothing and ends all SamCERA benefit rights, with 22% withheld on a check. The documents read describe no lump-sum retirement option.
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 San Mateo County Employees’ Retirement Association (SamCERA): its Guide to Your SamCERA Benefits, which states “This version was updated September 30, 2026”, its Leaving Employment guide, the service purchase page on its website, and its member FAQ. Any figure here is the system’s, or is labeled as a computed example from assumed inputs.
Plans matter. “SamCERA has several plans, and you will be placed in a plan based on your date of hire.” “Retirement benefits and eligibility differ by plan.” Each figure below belongs to the plan named with it. On retiree health: “SamCERA does not administer retiree health benefits.” State tax questions are on California retirement taxes and does California tax pensions.
When a pension can start
Eligibility turns on age and service credit. For Plans 1, 2, 4, 5 and 6 the Guide lists, among other routes, “Age 50 with 10 years of service credit”; for General members, “30 years of service credit, regardless of age”; and for Safety and Probation members, “20 years of service credit, regardless of age”. For Plan 7 General members it lists “At least age 52 with 5 years of service credit”, and for Safety and Probation members “At least age 50 with 5 years of service credit”. Plan 3, the plan without member contributions, has its own test: “at least age 55 with 10 years of service credit”.
Retirement does not start by itself. “In order to retire, you need to contact SamCERA and fill out a retirement application.”
What the formula pays
The Guide gives one equation: “Years of Service x FAC x Age Factor (based on age at retirement) = Monthly Benefit” On the age factor: “Age factors increase in quarter-year increments, and there is a maximum age factor which varies by plan.” The Guide also says “the maximum monthly benefit any member can receive cannot exceed 100% of their Final Average Compensation”.
Final Average Compensation (FAC) is built by plan. For Plans 1 and 2: “FAC is your highest year of salary, divided by 12”. For Plans 3 through 6: “FAC is the sum of your highest 3 years of salary, divided by 36”. For Plan 7: “FAC is the average of your highest 36 consecutive months of salary”.
The Guide’s General Plan 7 table, built on its 2% at 62 formula, has two worked examples: “If you retire with 20 years of service at age 60, multiply your FAC by 36.0%” and “If you retire with 30 years of service at age 65, multiply your FAC by 69.0%”. A computed example from the Guide’s own input, an assumed $5,000 monthly pensionable pay: 69.0% of $5,000 is a computed $3,450 a month, and 36.0% of $5,000 is a computed $1,800 a month, matching the Guide’s printed $3,450 and $1,800. On Plan 3: “By law, Plan 3 retirement benefits are reduced by your Social Security benefits.”
The election: six payment options and one permanent choice
“At retirement, you must choose one of six retirement payment options.” “this choice will typically provide less money for your beneficiary when you die” “The option you choose will affect the amount of money you receive in retirement, as well as the amount of money your beneficiary(ies) may receive when you die.” The tables use the Guide’s descriptions.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Unmodified, with eligible spouse or partner | The full (unmodified) benefit | 60% of the monthly benefit to an eligible spouse or partner |
| Unmodified, without eligible spouse or partner | The full (unmodified) benefit | A one-time lump sum of remaining contributions and interest, plus the last unpaid payment |
| Modified Option 1 | A monthly benefit reduced slightly | A one-time lump sum, larger because the monthly benefit is reduced |
| Modified Option 2 | A reduced benefit, based on the age gap to the beneficiary | 100% of the monthly benefit to a single primary beneficiary |
| Modified Option 3 | A reduced benefit, based on the age gap to the beneficiary | 50% of the monthly benefit to a single primary beneficiary for life |
| Modified Option 4 | A reduced benefit, set by actuarial calculation | The percentage the member chooses, split among one or more beneficiaries |
Plan 3 differs: “At retirement, Plan 3 members must choose one of three retirement payment options.” Its survivor shares are 50% for an unmodified option with a spouse and 100% for the modified option.
No dollar figure or percentage is published for how much a modified option cuts the monthly benefit. For the estimate, “To help you make your decision, contact SamCERA and make sure that you have received and reviewed a benefits estimate for each option.” See also single-life versus joint-and-survivor pension.
What each option does for a survivor
With the unmodified option and a spouse, “he/she will receive a monthly benefit consisting of 60% of your monthly benefit”. If your spouse or partner is no longer your spouse or partner at the time of your death, “your contingent beneficiary(ies) will not receive a monthly benefit but will instead receive a lump-sum payment consisting of the balance, if any, of your remaining accumulated contributions and interest, and the last monthly benefit payment earned, but not paid on your account”.
Modified Option 2 is the full continuance, with a limit: “If you have a non-spouse/partner beneficiary who is more than 10 years younger than you, contact SamCERA due to IRS regulations that may affect both your benefit and your beneficiary’s survivor benefit”. For that case the Guide warns that “you may need to select Option 4 because IRS regulations do not allow a 100% continuance”, and it says “If your primary beneficiary dies before you, your monthly benefits will terminate upon your death, and your contingent beneficiary(ies) will receive a lump-sum payment consisting of the balance, if any, of your accumulated contributions, and the last monthly benefit payment earned, but not paid on your account”. Modified Option 4 lets a member pick the share: “you will specify what percentage of your retirement benefit you would like to continue on after your death”. “If any of your beneficiaries die before you, there will be no adjustments made to the amount that you receive”, so a beneficiary dying first does not raise the payment.
A computed example from assumed figures, not SamCERA figures: under the unmodified option, an assumed full benefit of $3,000 a month leaves a spouse 60% of $3,000, a computed $1,800 a month. Under Modified Option 2, an assumed reduced benefit of $2,400 leaves 100% of $2,400, a computed $2,400, and under Modified Option 3 it leaves 50% of $2,400, a computed $1,200. The $2,400 is invented, since the reduction is not published.
What is irrevocable, and the spouse’s role
“Once you choose an option, it is irrevocable after you retire.” Afterward, the Guide says a member “may only change beneficiary designations for those persons who are eligible to receive a lump-sum payment”. An eligible spouse must “be married one year prior to your retirement in order to leave a continuance”, and an eligible domestic partner must “be registered with the California Secretary of State one year prior to your retirement in order to leave a continuance”.
Naming someone else as primary beneficiary needs a signature: “a notarized SamCERA waiver form signed by your spouse or domestic partner is required, even if you are legally separated”.
Applying, deadlines and the divorce hold
“Your retirement application must be submitted no more than 60 days before the effective date of your retirement.” “The application is void if older than 60 days.” “Your retirement date is the first day you are officially retired, not your last day on the job.” “If you retire on or before April 1, any applicable Cost-of-Living-Adjustment (COLA) increase will be applied to your retirement benefit.”
A divorce or separation can stop the process: “You will not be able to complete the retirement process, receive retirement benefits, or withdraw your funds until SamCERA receives and approves a Court order regarding the division of your SamCERA benefits”. For service in more than one California system, “you must retire from all systems on the same date”.
Lump sums: what the documents describe
In the documents read, lump sums appear in two places: the survivor payment above, and the refund of contributions below, which ends the member’s rights to a pension. The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP. For SamCERA, the only cash comparison the documents offer is the refund decision, which the Leaving Employment guide frames this way: “Before making your decision, compare the amount that you would receive as a refund to the amount of a lifetime monthly benefit for which you may be (or may become) eligible.” The general framework is on pension lump sum versus monthly annuity break-even.
Leaving before retirement: keep the funds on deposit or take a refund
Vesting comes first. “You are vested when you have five years of SamCERA service credit or a combination of SamCERA and reciprocal service credit.” “As a vested member, you have earned a lifetime monthly SamCERA benefit even if you leave employment before you are eligible to retire, if you leave your funds on deposit.”
Funds left on deposit: “Your funds will continue to earn interest”. “Interest is credited to your account on June 30 and December 31 of each year at a rate determined by the Board of Retirement.” “Your retirement benefits do not automatically begin when you become eligible to retire, you must apply for retirement.” For a non-vested member (under five years), “You are not eligible for future retirement benefits from SamCERA until you reach the age of 70”, unless service grows through a return to membership or reciprocity. “If you do so within six months, you can establish reciprocity regardless of how many years of service credit you have, as long as you leave your funds on deposit.”
There is a time limit: “The payment of a retirement allowance or a refund of accumulated contributions becomes mandatory on April 1 of the year following the year in which the individual reaches age 73.” For a non-vested member, the guide says the member “will automatically receive a refund of their contributions on April 1st after the year they reach age 73”.
Taking a refund: all or nothing
“The only way you can take money out of SamCERA is to terminate your employment and take a refund of your contributions and interest.” “If you do that, you lose all rights to your benefits.” “A withdrawal will terminate your SamCERA membership, your service credit will be gone, and you will no longer be eligible to apply for any future retirement benefits, unless you return to active membership and redeposit all your withdrawn funds and interest, plus any interest the account would have been credited during the period that the funds were not on deposit” Partial refunds are not allowed; the guide’s wording is “you must withdraw all your funds”.
“A withdrawal may not be the best option for you if you are (1) vested, (2) eligible for a SamCERA retirement benefit or disability benefit, or (3) able to establish reciprocity with your next employer.” The guide’s summary table puts the cost as: “You will not be able to retire or establish reciprocity later”. Service credit can return only through redeposit: “you may restore the service credit by redepositing all of the withdrawn funds, plus any accrued interest”. More on the choice is on pension refund versus leaving it.
How a refund is paid and what is withheld
A withdrawal can be a rollover (“all or a portion of your funds can be directly rolled over to an IRA or another qualified tax-deferred plan”), a check (“you can be paid in a check made directly out to you”), or a mix. “Your withdrawal will be subject to federal (20%) and, for California residents, a state income tax (2%), unless you do a direct rollover into an IRA or other qualified tax-deferred plan.” “If you are under age 59½ and do not do a rollover, you will also have to pay a 10% additional income tax on ‘early distributions,’ unless an exception applies” “While subject to change, the total amount for both withholdings is 22%.”
A computed example from an assumed $10,000 taxable withdrawal paid by check, not a SamCERA figure: 20% federal withholding is a computed $2,000, 2% California withholding is $200, the 22% total is $2,200, and the cash received is $7,800. A member under age 59½ with no exception who did not roll over would also face a 10% additional tax, a computed $1,000 on $10,000. The guide notes the final tax may be more or less than the withholding. See 20% withholding on a pension lump sum.
Buying service credit
“Purchases, upgrades and redeposits can only be done while you are an active employee, and all of them involve entering into a Purchase Contract.” Covered time includes “uncredited service credit (such as Extra Help, Medical Leave, and Military Leave)”. Price comes from a method, not a schedule: “each of the following uncredited service types can be purchased by the payment of contributions that you would have paid during that period, together with the interest that the contributions would have earned”. “The longer you wait to purchase service, the greater the cost.”
“there are only two periods of time that these forms will be processed each year” “The agreement is binding and cannot be amended or revoked.” “If you miss a deadline you will have to start the process over.” “At the time of your retirement, your monthly benefit will not include the value of your service purchase or upgrade.” Whether a purchase counts toward eligibility is stated two ways: the Guide says “Reciprocal service from another public employer, as well as certain service credit purchases may be used to meet SamCERA’s service credit requirements”, while the Leaving Employment guide says “Reciprocal service from another public employer, as well as most service credit purchases may be used to meet SamCERA’s service credit requirements”.
A computed example from assumed figures, not SamCERA figures: a purchase costing $24,000 that raised the pension by $200 a month would take $24,000 divided by $200, a computed 120 months to recover. The real inputs come from SamCERA’s Cost Notification. See the pension buyback calculator.
Cost-of-living adjustments
“Plans 4, 5, 6, and 7 annual COLA provides for an increase up to a maximum of 2% per year.” “The Plan 1 annual COLA provides for an increase of up to a maximum of 5% per year.” “The Plan 2 annual COLA provides for an increase up to a maximum of 3% per year.” “Plan 3 does not provide for a COLA.”
The Guide’s example is a 2% COLA on $3,000 a month. Recomputed: $3,000 times 1.02 is a computed $3,060 a month, or $36,720 a year, and a second 2% increase gives a computed $37,454 a year, the Guide’s printed $37,454.
Tax on the pension itself
“Retirement benefits (including certain disability retirement benefits) are generally considered taxable income under both federal and State of California income tax laws.” On leaving California: “SamCERA will not deduct state income tax from your benefit, for California or any other state.”
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 SamCERA’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”. SamCERA’s Leaving Employment guide describes the same mechanics for its own withdrawals, including a window for an indirect rollover. 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.
What this page could not settle
- The pages read do not state how much any modified option reduces the monthly benefit; the Guide says only that it is reduced, by an amount tied to ages or an actuarial calculation.
- The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP.
- The pages read do not state the interest rate credited on contributions, only that the Board of Retirement sets it.
- The pages read do not give a price for any service credit purchase.
- The Guide says certain service purchases count toward eligibility and the Leaving Employment guide says most; the pages read do not reconcile the two.
- Age factor tables other than the General Plan 7 examples were not worked through, and the 2026 service purchase dates sit on a page not archived here.
Common mistakes
- Treating a payment option as changeable later; the Guide says it is irrevocable after retirement.
- Taking a refund without weighing the pension it ends; a withdrawal forfeits all SamCERA benefit rights and cannot be partial.
- Expecting a refund check in full; SamCERA withholds 22% in total on a check written to the member.
- Waiting on a service purchase; the contract is binding and a missed deadline forces a restart.
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
- SamCERA, Guide to Your SamCERA Benefits (September 30, 2026 edition): https://content.samcera.gov/wp-content/uploads/2026/08/GuideToYourSamCERABenefits_20260930_final.pdf
- SamCERA, Leaving Employment (February 17, 2026): https://content.samcera.gov/wp-content/uploads/2025/02/LeavingEmployment_20260217.pdf
- SamCERA, Service Purchases (web page): https://www.samcera.org/members/active-members/service-purchases
- SamCERA, Frequently Asked Questions (web page): https://www.samcera.org/faqs
- 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.