Updated October 7, 2026. Quick answer: A Kern County Employees’ Retirement Association member retiring with a pension elects one of five options, with a Temporary Annuity Option available before age 62. The unmodified option pays the maximum benefit and leaves an eligible spouse 60%, while Options 2 and 3 trade a smaller benefit for 100% or 50% survivor shares. KCERA calls the election irrevocable once the first payment issues. A refund of contributions ends membership and carries 20% federal and 2% state withholding on a check. The pages 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 “Kern County Employees’ Retirement Association” (KCERA) for members of the County of Kern and participating special districts: member web pages read on October 7, 2026, its Retirement Application Packet (Rev. 2/2025), its Disposition of Retirement Contributions packet (Rev. 1/2024), its Optional Settlement 4 Policy and its service purchase FAQ. Any figure here is the system’s own, or is labeled as a computed example from assumed inputs. State tax questions are on California retirement taxes and does California tax pensions.
When a pension can start
Vesting comes first: “To be vested, you must have five years of reciprocal and/or retirement service credit.” Retirement eligibility is a separate test. For Tier I, Tier II and Tier II PEPRA, KCERA lists “10 years of retirement service credit eligibility AND 50 years old, or”, or service of “30 years of retirement service credit, regardless of age” for General members and “20 years of retirement service credit, regardless of age” for Safety members. “The retirement benefit does not automatically begin once you reach the minimum criteria for retirement.”
What the formula pays
KCERA states each tier’s formula as a percent of final average compensation for every year of service credit. For General Tier 1, “a general member retiring at age 60 will receive 3% of his final average compensation”; for General Tier 2, “a general member retiring at age 65 will receive 1.62% of his final average compensation”. Non-PEPRA members use “your highest 12 consecutive months” and PEPRA members “your highest 36 consecutive months”.
A computed example from assumed figures, not a KCERA figure: a General Tier 1 member retiring at age 60 with an assumed $6,000 final average compensation and an assumed 20 years of service credit earns 3% a year, which is 60% of $6,000, a computed $3,600 a month, ignoring the Social Security integration factor KCERA applies to some members and before any option reduction. That assumed amount is the base for the survivor example below.
The election: five options and one permanent choice
“A few weeks after you terminate employment, you will be asked to sign “final papers.” This is when you will officially elect one of five retirement options.” The table follows KCERA’s own descriptions.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Unmodified | The maximum monthly lifetime benefit | 60% of the basic monthly benefit to an eligible spouse or registered domestic partner; if none, minor children share 60%; otherwise a refund of contributions less benefits paid |
| Option 1 (cash refund annuity) | A reduced monthly benefit (the Retirement Options page says slightly reduced) | No monthly continuance; any remaining contributions go to the named beneficiary, who can be an estate |
| Option 2 (100% joint and survivor) | A reduced monthly benefit, based on the beneficiary’s age | Up to 100% of the benefit for the beneficiary’s lifetime |
| Option 3 (50% joint and survivor) | A reduced monthly benefit, based on the beneficiary’s age | 50% of the benefit for the beneficiary’s lifetime |
| Option 4 (joint and survivor) | A reduced monthly benefit, based on the youngest beneficiary | Up to 100% shared among one or more named beneficiaries in chosen percentages |
No percentage is published for how much Options 1 through 4 cut the monthly benefit. KCERA says only that “The younger your beneficiary, the greater the reduction”. For a real number, “Please contact Member Services staff to discuss your options in greater detail”. See also single-life versus joint-and-survivor pension.
What each option does for a survivor
Unmodified: “This option provides the maximum monthly lifetime benefit to you, regardless of your marital status.” The spouse test is strict: “To be eligible, your spouse/registered domestic partner must be married/registered to you for a minimum of one year prior to your retirement.” “If you marry/register after retirement, you must be married/registered for a minimum of two years prior to your death, and your spouse/registered domestic partner must have attained a minimum age of 55 on or prior to the date of your death.” If there is no surviving spouse, partner or eligible child, “your designated beneficiary will receive a refund of your KCERA member contributions plus interest, less the sum of the monthly benefits that were paid to you during your lifetime”.
Option 1: “This option provides for a reduced monthly benefit to you for your lifetime, with the provision that after your death, any of your remaining contributions will be paid to your named beneficiary.” “There is no monthly continuance with this option.”
Option 2: the packet describes a benefit “with up to 100% of the benefit continuing after your death to your spouse or surviving beneficiary, for their lifetime”. “If your named beneficiary dies before you, a new beneficiary may not be designated.” Option 3 is the same structure at a lower share: a benefit “with 50% of the benefit continuing after your death to your named beneficiary, for their lifetime”.
Option 4: “This option allows you to name more than one beneficiary to share in the continuance.” “Your benefit will be based on the youngest beneficiary.” “The percentages designated to each beneficiary at retirement is irrevocable.”
If the beneficiary is not a spouse: “If your designated beneficiary is someone other than a spouse and you are older by an “adjusted age difference” of more than 10 years, the maximum survivor benefit percentage will be reduced based on a table in IRS Regulation 1.401(a)(9)-6.”
A computed example from assumed figures, not KCERA figures: if a General Tier 1 member’s unmodified benefit were the assumed $3,600 a month, an eligible spouse would receive 60% of $3,600, a computed $2,160 a month. Under Option 2, an assumed reduced benefit of $3,000 a month would leave 100% of $3,000, a computed $3,000, and under Option 3 the same assumed $3,000 would leave 50%, a computed $1,500. The $3,000 is invented, because KCERA publishes no reduction factors. How a survivor payment fits a household is on survivor benefit with a government pension.
The Temporary Annuity Option
“KCERA provides a Temporary Annuity Option (TAO) available to members retiring prior to age 62 who are entitled to Social Security benefits at age 62.” “The TAO is designed to “level out” retirement income for such members, increasing retirement benefits prior to age 62 and decreasing benefits after age 62, when Social Security benefits begin.”
The pages read do not state the size of the swing between the pre-62 and post-62 amounts.
What is irrevocable, and where KCERA’s own wording conflicts
“It cannot be changed after your first benefit payment is issued.” The Retirement Application Packet words it differently: “Your choice cannot be changed after retirement.” One source locks the choice at the first payment and the other at retirement, so treat the earlier date as the safe one.
The sources also conflict on beneficiary changes. The Retirement Options table lists the unmodified option as the “Only option that allows member to name new beneficiary for continuance after retiring”, while the packet says of Option 1: “You may change your beneficiary at any time during your retirement with this option.” Both statements cannot describe a sole option, and the pages read do not reconcile them. Ask Member Services which applies.
A submitted application can be rescinded: “If you decide to rescind your retirement after submitting an application packet, you must provide a written rescission notice to KCERA.”
Applying, deadlines and the divorce hold
“You may submit your application within 120 days or less (4 months) from your elected date.” “KCERA cannot backdate your application, therefore we must receive the completed packet before your elected and eligible retirement date.”
A divorce can stop the process: where a former spouse may hold a community property interest, KCERA asks for the judgment and court-approved order, and “KCERA cannot issue your first retirement payment until these documents are on file”. After the retirement date the first check is not immediate. “Within three weeks of signing “final papers,” you will receive a lump-sum retroactive payment from KCERA.” KCERA also suggests timing: “You may want to retire on or before April 1 so that you are eligible to receive the cost-of-living adjustment that is payable in April.”
Lump sums: what the documents describe
In the documents read, lump sums appear as the retroactive payment before the first monthly check, as survivor refunds under the unmodified option and Option 1, as a one-time $5,000 death benefit to a retiree’s beneficiary, and as the refund of contributions for members who leave before retiring. The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP. For KCERA the cash-versus-pension comparison therefore arises at termination, not at retirement. The general framework is on pension lump sum versus monthly annuity break-even.
Leaving before retirement: deferred, funds on deposit, or refund
“If you terminate employment with a KCERA plan sponsor prior to retiring, your membership type changes from “active” to “deferred.”” The line is five years: “A member who terminates with five or more years of retirement or reciprocal service credit.” Below five years, “as a deferred-nonvested member, you are not entitled to a future retirement benefit and must eventually withdraw your funds”.
A deferred-vested member can apply once eligible: “However, as a deferred-vested member, you are entitled to a future retirement benefit and can apply for retirement once you are eligible.” The Disposition packet adds that the pension is not automatic: “You must file with the KCERA office within 120 days or less prior to your desired retirement date”.
On the funds: “You may not borrow from, use as collateral or withdraw your contributions during your employment.” A return to work changes things: “if you are rehired by a KCERA plan sponsor before withdrawing your contributions, you will revert to being an active member and become unable to withdraw your retirement funds”.
For a move to another California system, KCERA says “you must keep your contributions on deposit in KCERA to maintain your reciprocal status” and “You must retire from all reciprocal systems on the same day”.
Taking a refund: what it ends
“KCERA can issue you a lump-sum payment (refund) or transfer your contribution balance to a qualified retirement account (rollover).” “There is a 30-day waiting period before your withdrawal request can be processed.” “Once the funds are disbursed, your KCERA membership ends.” The Contributions page adds: “you also forfeit all KCERA benefits previously entitled to you”, and “Employer contributions are non-refundable”.
Timing: “Refunds may take up to 6 weeks after KCERA receives your request.”
The choice is between a refund of the member’s own contributions and interest and a future pension, and the comparison has its own page: pension refund versus leaving it.
How a refund is paid and what is withheld
A refund can be paid to the member or rolled over. “Currently, KCERA is required to withhold 20% for federal taxes and 2% for state taxes on all withdrawals.” “If you are under age 59½ and do not do a rollover, you will also be subject to a 10% additional income tax on early distributions (unless an exception applies) when you file your annual taxes.” “You may avoid all taxes and penalties on your withdrawal by instructing KCERA to directly roll over your funds into another qualified plan.”
A computed example from an assumed $10,000 taxable refund paid by check, not a KCERA figure: 20% federal withholding is a computed $2,000, 2% state withholding is $200, and the cash received after both is $7,800. A member under 59½ with no exception who did not roll over would also face a 10% additional tax, a computed $1,000 on $10,000. Withholding is not the final tax. See 20% withholding on a pension lump sum.
Buying service credit
“Purchasing service credit can increase your retirement benefit and, in some cases, allow you to retire earlier.” The two kinds of purchase differ on eligibility. For Prior County/District Service, “The purchased service also counts toward your five-year vesting and retirement eligibility requirements”. For Prior Public Service (federal, state, military and other California public employment), “The purchased service does not count toward your five-year vesting or retirement eligibility requirements”.
Limits: “If you have funds on deposit with the previous employer/retirement system, you CANNOT purchase the prior service with KCERA.” Earlier withdrawals have a route back: “you may redeposit the withdrawn funds to regain the forfeited service credit”.
Paying: “You can schedule after-tax payroll deductions from your biweekly pay for up to five years, depending on the type and length of service being purchased.” For rollovers, “You can transfer pre-tax funds from a qualified retirement plan”, for all or part of the cost.
The sources conflict on military pensions. The FAQ’s Prior Public Service rule is that “members CANNOT be entitled to receive a pension or retirement allowance (now or in the future) from the agency the member is seeking to purchase time from (including a benefit received based upon a redeposit of contributions withdrawn from a reciprocal system)”, while the web page says “If you are eligible for a pension for your military service, you may be eligible to purchase the service with KCERA”. Ask KCERA before assuming either.
A computed example from assumed figures, not KCERA 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 KCERA’s estimator and purchase contract. See the pension buyback calculator.
Cost-of-living adjustments
“KCERA retirees and beneficiaries are eligible to receive up to a 2.5% cost-of-living adjustment with their April payment.” “Each April, the 0.5% COLA is added to the employer-funded 2.0% COLA, resulting in a total annual COLA of up to 2.5%.”
A computed example from an assumed $3,000 monthly benefit, not a KCERA figure: a full 2.5% COLA is a computed $75 a month, for a new monthly benefit of $3,075.
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 KCERA’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”. KCERA’s Disposition packet carries a Special Tax Notice that describes the same direct and 60-day rollover rules for its own refunds. 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 Options 1 through 4 reduce the monthly benefit; they say only that the benefit is reduced, by the beneficiary’s age for Options 2 and 3.
- 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 to contributions, only that it may be credited semiannually depending on investment earnings.
- The Retirement Application Packet says a member who does not name their spouse or registered domestic partner as beneficiary must have both of them sign a waiver: “you both must sign the Spousal Consent for Waiver of Beneficiary Designation Form due to California community property laws.” The pages read do not state a spousal consent rule for a refund of contributions.
- The web pages and the Retirement Application Packet differ on which option allows a beneficiary change after retirement, and on whether the election locks at the first payment or at retirement.
- The Prior Public Service FAQ and the web page differ on whether a military pension blocks a purchase.
- Service purchase prices are not published; they come from the member portal estimator and a purchase contract.
- Tier assignment beyond the hire dates, PEPRA details and retiree health benefits were not worked through here.
Common mistakes
- Treating the option election as changeable later; KCERA calls it irrevocable once the first benefit payment is issued, and the packet says it cannot be changed after retirement.
- Naming a beneficiary without checking eligibility; an eligible spouse or partner must meet KCERA’s one-year and two-year marriage tests.
- Expecting a refund check in full; KCERA withholds 20% federal and 2% state on a check written to the member.
- Counting purchased Prior Public Service toward vesting or retirement eligibility; KCERA says it does not count.
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
- Kern County Employees’ Retirement Association (KCERA), Retirement Options (web page, read October 7, 2026): https://www.kcera.org/retirement-options
- KCERA, Post-Termination Decisions (web page, read October 7, 2026): https://www.kcera.org/post-termination-decisions
- KCERA, Purchasing Prior Service Credit (web page, read October 7, 2026): https://www.kcera.org/purchasing-prior-service-credit
- KCERA, Vesting and Eligibility (web page, read October 7, 2026): https://www.kcera.org/vesting-and-eligibility
- KCERA, Benefit Tiers (web page, read October 7, 2026): https://www.kcera.org/benefit-tiers
- KCERA, Applying for Retirement (web page, read October 7, 2026): https://www.kcera.org/applying-for-retirement
- KCERA, Contributions (web page, read October 7, 2026): https://www.kcera.org/contributions
- KCERA, Planning for Retirement (web page, read October 7, 2026): https://www.kcera.org/planning-for-retirement
- KCERA, First Benefit Payment (web page, read October 7, 2026): https://www.kcera.org/first-benefit-payment
- KCERA, Your Retirement Benefits (web page, read October 7, 2026): https://www.kcera.org/your-retirement-benefits
- KCERA, Disposition of Retirement Contributions packet (Rev. 1/2024): https://www.kcera.org/files/011c77a9f/Disposition+Packet_2024_REV.pdf
- KCERA, Optional Settlement 4 Policy (adopted by the Board December 11, 2024): https://www.kcera.org/files/3c17dd7e8/Optional+Settlement+4+Policy+%28BOR+adopted+24-12-11%29.pdf
- KCERA, Purchasing Prior Service Credit: FAQ’s (June 2023): https://www.kcera.org/files/f6f88ffb2/Purchase+of+Service+FAQ_June+2023.pdf
- KCERA, Retirement Application Packet (Rev. 2/2025): https://www.kcera.org/files/de0bacb95/Ret+App+Packet_Fillable+REV_010826.pdf
- 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.