Updated October 7, 2026. Quick answer: A Tulare County Employees’ Retirement Association (TCERA) member retiring chooses among the Unmodified option and Options 1 to 4, and TCERA says option elections are irrevocable once benefit payments commence. The Unmodified option pays the maximum allowance and a 60% continuance to a qualified surviving spouse. Option 2 continues 100% and Option 3 continues 50%. A member who leaves before retiring can take a refund, which ends all rights to membership, or leave the money on deposit. A cash refund carries a mandatory 20% federal withholding. These documents cover Tiers 1 to 4, General and Safety.
What this page covers and what it does not
This page works from six documents published by the Tulare County Employees’ Retirement Association (TCERA): its Plan Summary (revised January 2025), its Distribution Elections form with the attached Special Tax Notice (form revised December 2020), and four member web pages on leaving employment, reciprocity, service credit purchases and active death benefits, read on October 7, 2026. Any figure here is TCERA’s, or is labeled as a computed example from assumed inputs.
TCERA is a county system, “TCERA is a retirement system, organized under the County Employees Retirement Law of 1937 (’37 Act)”, serving employees of the County of Tulare, the Tulare County Superior Court and the Strathmore Public Utility District. The documents cover General and Safety members in all four tiers, assigned by date of membership: Tier 1 is “Membership date prior to 1980”, Tier 2 is “Membership date on or after January 1, 1980 through December 31, 1989”, Tier 3 is “Membership date on or after January 1, 1990 through December 31, 2012”, and Tier 4 is “Membership date on or after January 1, 2013”. State tax questions are on California retirement taxes and does California tax pensions.
When a pension can start
Eligibility depends on tier and member type, and each row of the table is an either-or test restated from the Plan Summary. For Tier 4, TCERA adds: “There are no age or service exceptions for Tier 4 members.”
| Group | Service retirement eligibility |
|---|---|
| Tiers 1 to 3 General | Age 50 with ten years of service credit, or 30 or more years at any age, or age 70 at any service |
| Tiers 1 to 3 Safety | Age 50 with ten years of service credit, or 20 or more years at any age, or age 70 at any service |
| Tier 4 General | Age 52 with 5 years of service credit; no age or service exceptions |
| Tier 4 Safety | Age 50 with 5 years of service credit; no age or service exceptions |
How and when to apply
The application window has a floor and a ceiling. “the Retirement Application must be signed and submitted no earlier than 90 days before the date of retirement.” “An application date cannot be backdated for purposes of submitting a valid application.” On payment timing: “The first retirement benefit will be paid no later than 60 days after the effective date of retirement if all required information and documentation has been received by the Retirement Office.”
What the monthly allowance is built from
The option election reduces or keeps a base allowance, so the base comes first. TCERA multiplies four numbers: a membership factor, years of service, an age factor and final average monthly salary. For Tiers 1 to 3, the factor is 2% for General service after June 30, 2005 and for all Safety service, and 1 2/3% for earlier General service. The Tier 4 membership factor is .01 for both General and Safety. Final average monthly salary uses a consecutive 12 month period for Tier 1 and a consecutive 36 month period for Tiers 2 to 4. “Monthly pension benefits are capped at 100% of F.A.M.S.”
A computed check of TCERA’s own Tier 4 example: TCERA’s sample uses a General member with 25 years of service retiring at age 55 with a $2,500 monthly final average salary and a 1.3 age factor. A computed result: .01 times 25 years times 1.3 times $2,500 is a computed $812.50 a month, which matches the sample. The sample is an illustration and says nothing about any individual record.
The age factor rises by quarter years, and TCERA encourages members to watch quarter-age birthdays “when selecting a retirement date, as the passing of each factor cutoff period will affect the calculation of the benefit”. For a personal figure, “For members nearing retirement age, TCERA recommends requesting retirement estimates from the Retirement Office”.
The election: five options and one permanent choice
TCERA lists the Unmodified option and Options 1 to 4. “Option elections are irrevocable once benefit payments commence.” The table summarizes TCERA’s own descriptions.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Unmodified | The maximum monthly allowance for life | A 60% continuance to a qualified surviving spouse; minor children may be eligible if no spouse is; otherwise a lump sum to the named beneficiary of accumulated contributions less allowance payments received |
| Option 1 | A slightly reduced monthly allowance for life | Accumulated contributions less the annuity portion of the payments received, paid to the beneficiary |
| Option 2 | A reduced monthly allowance for life | 100% of the allowance continued after the member’s death |
| Option 3 | A reduced monthly allowance for life | 50% of the allowance continued after death to the beneficiary |
| Option 4 | A reduced monthly allowance for life | An actuarially calculated benefit continued for the life of each beneficiary named at retirement |
The pages read do not state how much Option 1, 2, 3 or 4 reduces the monthly allowance; the word used is reduced, and Option 1 is called slightly reduced. The general trade-off is covered on single-life versus joint-and-survivor pension.
What each option does for a survivor
The test for a spouse under the Unmodified option is narrow: “A qualified surviving spouse is a person who was married to the TCERA member for at least one year prior to the retirement date and who remained married to the member until the date of death.” TCERA also notes that “spousal beneficiary rights may supersede the rights of a named beneficiary as determined by applicable retirement law”.
For Option 1, “If the beneficiary named dies before the member, a new beneficiary may be designated”. Options 2 and 3 are the reverse. For Option 2, “If the beneficiary named dies before the member, a new beneficiary may NOT be designated and the allowance under this option will be paid only through the member’s life”. Option 3 has the same restriction.
A computed example from assumed figures, not TCERA figures: under the Unmodified option, an assumed monthly allowance of $3,000 leaves a qualified surviving spouse 60% of $3,000, a computed $1,800 a month. Under Option 2, an assumed reduced allowance of $2,400 would continue at 100% of $2,400, a computed $2,400 a month, and under Option 3 the same assumed $2,400 would continue at 50%, a computed $1,200 a month. The $2,400 is an assumed input, since TCERA does not publish the reduction in the pages read; a real quote must come from TCERA.
Option 4, the temporary annuity, and what cannot change
Option 4 lets the member name several beneficiaries, and “The benefits paid under this option must be calculated by TCERA’s actuary and approved by the Board of Retirement prior to the start of the member’s retirement allowance”. After retirement, “No new beneficiaries may be named following retirement”.
The Plan Summary also describes a temporary annuity for Tiers 1, 2 and 3. “This option is available to certain members who retire prior to becoming eligible for Social Security benefits at age 62, if approved by the Board of Retirement.” If approved, “the monthly amount from TCERA is reduced for life”. “This option is not available to Tier 4 members or for disability retirements.” See also pension lump sum versus monthly annuity break-even.
Survivor rules that changed, and death before retirement
A related benefit was withdrawn for newer retirees. The Plan Summary describes a post-retirement spousal continuance that depended on a supplemental reserve, and says “the Board rescinded the adoption of the benefit effective for members retiring on or after July 1, 2025”.
Death before retirement follows different rules from the option election; for a deferred member, the beneficiary receives a one-time lump sum return of the contributions and interest in the account. Compare survivor mechanics on survivor benefit with a government pension.
Lump sums at retirement: what the documents describe
The pages read describe lump sums only as payments to a beneficiary after death and as the refund of contributions after leaving. They do not describe a lump-sum retirement option, a partial lump sum or a deferred retirement option plan (DROP). The cash items they mention are leave balances, which depend on employer rules, and, for Tiers 1 to 3 retirees with ten or more years of TCERA service, the Supplemental Cash Benefit, whose schedule TCERA says is available from the Retirement Office upon request.
Leaving before retirement: the paths
A member who stops working for a TCERA employer without retiring can take a refund as cash, take it as a rollover, mix the two, leave the money on deposit, or link to another system through reciprocity. Deferred retirement means leaving the account on deposit with TCERA. “This option is of particular benefit to vested and partially vested members, as it keeps the member’s rights to a future retirement intact.” “The retirement account will continue to earn interest while the funds remain on deposit.”
Vesting decides how much deferral is worth. “Tiers 1-3 members are fully vested after achieving ten years of retirement service credit.” “Tier 4 members are fully vested at five years.”
Reciprocity: “The member must attain membership in the new plan within six months of terminating employment with the TCERA Plan Sponsor and retirement funds must be left on deposit with TCERA.” The main gain is salary: “each retirement system in which reciprocity has been established will use the highest salary from any of the reciprocal systems to calculate the retirement benefit.” The condition is timing: “the member must retire from all reciprocal systems using the same effective date.” The refund form adds: “I cannot receive a refund from TCERA until I terminate membership with my new plan.”
Taking a refund: what it ends
The refund is the exit choice. “A refund terminates all rights to membership in TCERA.” “The member may not elect to retire or establish reciprocity once a refund is completed.”
The form adds the spouse: “By requesting a refund of your retirement contributions, you and your spouse (if applicable) will be waiving rights to future retirement benefits.” More on the choice is on pension refund versus leaving it.
The Plan Summary is explicit about what a refund does not include: “Employer contributions are used for payment of lifetime retirement benefits and are not available to the employee at any time or for any purpose other than to pay eligible retirement benefits.” The pages read do not state the interest rate credited on a refund.
How a refund is paid, spouse consent, and what is withheld
A cash distribution: “If the member elects a cash distribution, TCERA is required to withhold 20% of the distribution amount for mandatory federal tax withholding.” A rollover can cover all of the account or part: “Members may also elect to receive part of the retirement account directly and part as a rollover.” The form shows the minimum on a partial rollover as “$500 or more”, and requires both signatures for the money options: “Spouse’s Signature is required for Distribution Options A and B”.
Timing and penalty. “California law requires that TCERA issue the refund within 6 months of the receipt of the completed form; however, the process generally takes from ten to twelve weeks, unless staffing levels or other administrative delays occur.” On the cash route, “Withdrawals made when the member is under the retirement age established by the Internal Revenue Service may result in both state and federal penalties in addition to income taxes owed on the distribution”. The form also warns: “I UNDERSTAND THAT ONCE DISTRIBUTION OF MY FUNDS HAS BEEN MADE, MY DISTRIBUTION ELECTION CANNOT BE CHANGED.”
A computed example from an assumed $10,000 taxable cash distribution, not a TCERA figure: 20% of $10,000 is a computed $2,000 withheld for federal tax, leaving a computed $8,000 in cash before any additional federal or California withholding the member requests on the form. The final tax can be more or less than the amount withheld. See 20% withholding on a pension lump sum.
TCERA’s tax notice also says: “Generally, neither a direct rollover nor a payment can be made from the plan until at least 30 days after your receipt of this notice.” It covers federal rules only: “Other tax rules apply for California.”
Coming back to TCERA after leaving
What the member did on exit decides what happens on return. “A vested deferred member returning to employment with a TCERA participating employer will receive the original entry age, tier, and membership date in the plan that existed at the time of election of deferred status.” After a refund, “A redeposit of refunded contributions with interest will result in restoring service credit and tier for the member”.
Buying service credit
The Plan Summary lets members buy service in several circumstances. “Members pay interest charges on all types of purchases.” For the cost, a member submits a request to the Retirement Office for calculation.
Redepositing a refund: “The calculation for the amount of the redeposit will include the interest that would have accrued had the funds remained on deposit with TCERA.” A medical leave: “Personal Medical Leaves of Absence occurring on or after January 1, 1978 are eligible for purchase if the member returns to paid status following the leave.”
The pages read do not give a price for a purchase. See the pension buyback calculator for the general cost-versus-benefit test.
Cost of living and supplements
After retirement the allowance can rise with prices. “Tier 1 members are eligible to receive up to a maximum of 3% COLA per year while Tiers 2-4 are eligible to receive up to a maximum of 2% COLA per year.”
Supplemental benefits for Tiers 1 to 3 are separate. “Supplemental Retirement Benefits are not vested or guaranteed benefits.” The Plan Summary also says the Supplemental COLA Benefit was frozen effective January 1, 2025.
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 TCERA’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”. TCERA’s Distribution Elections form describes the same mandatory 20% federal withholding on a cash refund that is not rolled over, and a direct rollover to avoid it. 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.
Where the sources disagree
Two points differ between TCERA documents. The Plan Summary names a Request to Buy Back Service Credit form, while the member web page names a Service Purchase Estimate Form. The Plan Summary says military leave purchase requests can be submitted upon return, while the web page says the purchase begins automatically upon return and can be opted out of. The Distribution Elections form read is dated December 2020, older than the January 2025 Plan Summary, so the current form may differ.
What this page could not settle
- The pages read do not state how much Option 1, 2, 3 or 4 reduces the monthly allowance; the options are described only as reduced or slightly reduced.
- 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 left on deposit or paid in a refund.
- The pages read do not give the cost of any service credit purchase, only the method and the fact that interest is charged.
- The age factor tables for each tier, disability retirement, divorce division and the Supplemental Cash Benefit schedule were not summarized for this page.
- Whether the current Distribution Elections form matches the December 2020 version read was not confirmed.
Common mistakes
- Treating the option as changeable later; TCERA says option elections are irrevocable once benefit payments commence.
- Choosing Option 2, 3 or 4 and expecting to name a new beneficiary if the first one dies first; TCERA says a new beneficiary may not be designated.
- Taking a refund without weighing what ends; a refund terminates all rights to membership, and the member may not elect to retire or establish reciprocity afterward.
- Expecting a cash refund in full; a mandatory 20% federal withholding applies to a cash distribution.
- Applying too early or too late; the retirement application cannot be signed more than 90 days before the retirement date and cannot be backdated.
Related on this site: California retirement taxes, does California tax pensions, 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 and public pension retirement decisions by system.
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Answer againSources
- TCERA, Plan Summary: A Guide to Plan Benefits (revised January 2025): https://tcera.org/active-members/a-guide-to-your-plan-benefits-rev-january-2025/
- TCERA, Distribution Elections (Terminated on or after 1/1/2003), with Special Tax Notice Regarding Plan Payments and Federal Income Tax (form revised December 2020): https://tcera.org/?wpdmdl=579&filename=Distribution-Election-Form-Jan2021.pdf
- TCERA, Leaving Employment (member web page, copy dated September 15, 2025): https://tcera.org/active-members/leaving-employment/
- TCERA, Reciprocity (member web page, copy dated July 18, 2025): https://tcera.org/active-members/reciprocity/
- TCERA, Service Credit Purchase (member web page, copy dated September 15, 2025): https://tcera.org/active-members/service-credit-purchase/
- TCERA, Active Death Benefits (member web page, copy dated September 15, 2025): https://tcera.org/active-members/active-death-benefits/
- 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.