Updated October 7, 2026. Quick answer: A San Bernardino County Employees’ Retirement Association member picks one of five payment choices at retirement: the unmodified benefit, which pays an eligible spouse or domestic partner 60% for life, or Options 1 to 4. The choice cannot be changed after the first benefit is issued. Retirees are paid monthly, never a lump sum. A member who leaves before retirement can request a refund or rollover of refundable contributions, but doing so waives all rights to retirement benefits. Vesting takes five years of service credit.
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 one document published by the San Bernardino County Employees’ Retirement Association (SBCERA): its Member Guide, a summary plan description marked Revised February 2025 and read on October 7, 2026. The guide ranks itself below the law: “the Code provisions and case law will supersede all SBCERA publications”. For a decision this large, SBCERA’s own estimate and a conversation with one of its retirement specialists are the checks that count.
State taxes are covered on California retirement taxes and does California tax pensions, and the system-by-system view is public pension retirement decisions by system. Nothing here is investment, tax or legal advice.
Vesting, and when a pension can start
The first milestone is vesting. “Once you earn the equivalent of five years of full-time SBCERA or reciprocal service credit, you become vested in the plan and qualify for a lifetime retirement benefit.”
Vesting is not the same as being able to retire, which depends on tier. A Tier 1 member joined before January 1, 2013, and a Tier 2 member joined on or after that date. For Tier 1 the guide says “Members age 50 or older may retire with at least 10 years of service credit”. For Tier 2 it says “General Members age 52 or older may retire with at least 5 years of service credit”. The guide lists further conditions, such as an age 70 rule and Safety member rules, that are not worked through here.
The amount depends on age at retirement, service credit, final average compensation and the benefit formula. For Tier 1 the averaging period is the highest 12 consecutive months of compensation earnable, and for Tier 2 it is the highest 36 consecutive months of pensionable compensation. Age is counted in quarter years, and the guide says “every three months following your birthday your benefit increases”.
What the formulas pay, using SBCERA’s own table
The guide gives one example row for each member type and says of the formula: “Ultimately, you will receive a percentage of your final average compensation for every year of service credit you have earned at a particular age.” The table reproduces the General rows as the guide shows them.
| Member type | Formula | Age at retirement | Years of service credit | Estimated benefit in the guide |
|---|---|---|---|---|
| Tier 1 General | 2% @ 55 | 55 | 25 | 50% of final average compensation |
| Tier 2 General | 2.5% @ 67 | 67 | 25 | 62.5% of final average compensation |
A computed check using only the guide’s figures: Tier 1 General at 2% for 25 years is a computed 50%, and Tier 2 General at 2.5% for 25 years is a computed 62.5% of final average compensation.
A computed example from an assumed $6,000 final average compensation, not an SBCERA figure: a Tier 2 General member retiring at 67 with 25 years of service credit would receive 62.5% of $6,000, a computed $3,750 a month, before any option reduction. That is the starting point for the payment options below.
The election: five choices and what each leaves a survivor
The guide says “You must select a retirement option and name a beneficiary when you retire.” “Some options reduce your monthly benefit to provide a larger lifetime monthly continuance for your beneficiary.” The table sets the five choices side by side using the guide’s descriptions.
| Choice | What the member receives | What the beneficiary receives |
|---|---|---|
| Unmodified | The benefit is not modified or adjusted | An eligible spouse or domestic partner receives a lifetime monthly continuance of 60% of the amount the member was receiving; with no eligible spouse or partner, eligible minor children receive 60% until they marry or reach age 18 (up to age 22 for full-time students) |
| Option 1 | A reduced benefit for life | The beneficiary receives a lump sum of any unused refundable contributions remaining in the account |
| Option 2 | A reduced benefit for life; the reduction depends on the member’s age and the beneficiary’s age | A lifetime continuance of 100% of the reduced amount; payments stop when the beneficiary dies |
| Option 3 | A reduced benefit for life; the reduction depends on the member’s age and the beneficiary’s age | A lifetime continuance of 50% of the reduced amount; payments stop when the beneficiary dies |
| Option 4 | A reduced benefit for life; the reduction comes from an actuarial study paid for by the member | The percentage of continuing payments that the member selects for the selected beneficiaries |
The pages read publish no percentage for how much Options 1 to 4 reduce the member’s benefit, so the reduced figure has to come from SBCERA’s estimate before electing. For the general trade between a single-life pension and a survivor pension, see single-life versus joint-and-survivor pension.
The unmodified benefit and who qualifies for the 60%
The guide says “Married members and domestic partners generally consider the unmodified benefit the best payment option.” The other options, it explains, “reduce the benefit payable to you in exchange for allowing the designation of someone other than your spouse or domestic partner as beneficiary”.
The 60% continuance carries conditions on who counts. “A spouse must have been married to you for at least one year prior to the time you retired to be eligible to receive the lifetime monthly continuance.” For a spouse or domestic partner acquired after retirement, the guide requires that you “must have been legally married and registered at least two years prior to your death” and that the “spouse/domestic partner must be 55 years or older at the time of your death”. The pages read do not describe how a spouse’s consent works if a married member wants a different option.
A computed example from the assumed figures above, not an SBCERA figure: if the unmodified benefit were $3,750 a month, a 60% continuance would be 60% of that, a computed $2,250 a month for an eligible spouse or domestic partner.
Options 1 to 4: when a reduced benefit is the point
Under Option 1 the guide says “Your beneficiary will receive a lump-sum of your unused refundable contributions (if any remain in your account).” Its case for the option includes that “members who are in poor health might want to ensure that their beneficiary receives as much benefit as possible because they will not be drawing on the benefit for long and anticipate remaining undistributed contributions”. The payout depends on what refundable contributions remain unused.
Options 2 and 3 are the survivor choices. Under Option 2, the guide says “Your beneficiary will receive a lifetime continuance of 100% of the reduced amount you were receiving.” Under Option 3, “Your beneficiary will receive a lifetime continuance of 50% of the reduced amount you were receiving.”
A computed example from an assumed $3,200 reduced monthly benefit, not an SBCERA figure: the beneficiary would receive 100% of $3,200, a computed $3,200 a month, under Option 2, and 50% of $3,200, a computed $1,600 a month, under Option 3. The reduced amounts themselves would differ between the two options.
Both carry a fixed feature. “If you select Option 2 or 3, and your designated beneficiary predeceases you, your monthly benefit cannot be changed and will remain reduced.”
The guide’s main example for Option 4 is divorce: “Often, a divorce judgment will require the member to elect Option 4 to guarantee a lifetime benefit to a former spouse or domestic partner.” On cost, “The reduction is determined by an actuarial study that is paid for by you.”
What is irrevocable, and the application window
“You can only change your selected option before your first retirement benefit is issued. After that time, your option selection is irrevocable.”
On the application, “The earliest date we can accept your application is 60 days prior to your effective date of retirement.” On changing course: “You can rescind your application or change your retirement date by submitting a written request to SBCERA before any retirement benefits are paid.” Confirm current deadlines and forms with SBCERA.
A pension, not a lump sum
The guide answers the cash question directly: “Retirees can be paid only in the form of monthly payments, not a lump-sum.” The only lump sum it describes for a living member is the refund of contributions on leaving before retirement, covered next. The pages read do not describe a partial lump sum or a deferred retirement option program. See also pension refund versus leaving it for the general trade-off.
The pension is taxable: “Retirement benefits are taxable income.”
Leaving before retirement: defer, refund or rollover
For a vested member the default is deferral. “Being vested allows you to defer your retirement. With this option, your contributions will remain on deposit with SBCERA.” Below vesting, “You may leave your funds on deposit with SBCERA and let them continue earning interest.” “You can request to rollover or refund your contributions any time.”
The money does not have to go to the member as cash. “You can request a refund of your account balance or a rollover of your account balance to an IRA or an eligible employer plan.” “You can also rollover a partial amount to an IRA or an eligible employer plan and have the remaining funds paid to you directly.”
The cost is the pension itself. The guide says “you waive all rights to retirement benefits, including SBCERA disability and reciprocal benefits, when you receive a refund or rollover of your refundable contributions”. It adds that on a request for a lump sum of refundable contributions, “you will be ineligible for any retirement benefits and will not be considered a Retired Member”. Whether the balance is worth more than the future pension is a question to settle with SBCERA’s estimate in hand.
A refund is open only after leaving. The guide says “you cannot be employed by any SBCERA-participating employer in any capacity”, and “You cannot borrow from your account, nor may you withdraw money while you are still working for a participating employer”.
Not every dollar is refundable. Some employers offer a choice of contribution types. The guide says “If you choose nonrefundable contributions, you contribute less than the normal contribution rate, but you are not entitled to a refund of any nonrefundable contributions if you terminate employment with an SBCERA-participating employer”. For a vested member holding only that kind, “If you have only non-refundable contributions and are a Vested Member, your only option is deferred retirement, and you may not request a refund.” Employer contributions are generally not refundable to the employee either.
What a refund is worth, and what is paid on it
A refund is the member’s own contributions plus interest. On interest, “The interest rate is based on the lesser of the assumed investment earnings rate or the six-month Treasury bill rate.” An eligible member is entitled to a refund “minus the applicable withdrawal charge”, and the pages read do not state the amount of that charge, so the figure that would reach a bank account has to come from SBCERA.
A computed example from an assumed $4,000 taxable refund paid directly to the member, not an SBCERA figure: at the IRS’s general 20% rate quoted in the tax section below, withholding would be a computed $800, leaving a computed $3,200 in cash. A member who then wanted to roll over the whole $4,000 would need to find the withheld $800 from other money. The pages read do not state any amount SBCERA itself would withhold, so the 20% is the IRS’s figure. See 20 percent withholding on a pension lump sum for how that works in general.
The guide also says that after a refund “no death benefits will be payable to the beneficiary”.
Reciprocity: the other way to leave
A member who moves to another California public agency may not need a refund at all. The guide says a member who leaves for a public agency with a reciprocal agreement has “the option to defer your retirement and establish reciprocity”. On the retirement date: “You must indicate the same retirement effective date or reciprocity will be broken, and the associated reciprocal benefits relinquished.”
Coming back after a refund
A refund is not necessarily permanent if the member returns to covered work. “If you left SBCERA-covered employment and withdrew your retirement contributions and interest, you have no retirement service credit for that period of service.” Restoring it is possible, since the guide says “You can restore this service credit in full if you redeposit (pay back) the withdrawn contributions and interest”. “The purchase must be completed in full to receive service credit.” A member who may return to covered work should weigh the repayment, with interest, as part of the refund decision.
Buying service credit: cost, deadlines and limits
Service credit is the years figure in the formula, so buying more can raise the pension. “Service credit purchases must be made prior to retirement, and all balances must be paid off within 120 days after your effective retirement date.”
The price depends on the type of service. For prior service with another public agency (called PPAS), the guide says “you pay twice the contributions (employer and employee portions) required if you had the same length of service as a member of SBCERA, plus any interest that would have accrued”. PPAS has a limit on what it buys: “PPAS time does not count toward vesting and retirement eligibility requirements.” The guide’s own advice: “You need to determine if the increased monthly retirement benefit outweighs the cost of the service credit purchase”.
A computed example from assumed figures, not SBCERA figures: if a member’s contributions on the same length of service would have been $10,000, a PPAS purchase would cost twice that, a computed $20,000, plus interest. If the purchase added an assumed $150 a month to the pension, the recovery period before interest would be $20,000 divided by $150, a computed 133 months of benefit payments. See the pension buyback calculator for the general method.
Payment rules and limits matter. A direct transfer from a deferred compensation plan is one route, but for it the guide says “No partial payments are allowed.” On disability: “If you are granted a disability retirement, service credit purchases you have executed may not increase your benefit, and you will not receive a refund of any amounts paid for service credits.” “All funds paid for a service credit purchase will be credited to your SBCERA retirement account as refundable contributions.”
Cost-of-living adjustments
SBCERA’s COLA is capped. The guide says “SBCERA may apply a cost-of-living adjustment (COLA) on April 1 of each year”, “not to exceed 2%”. The timing rule matters for a retirement date: “To be eligible for the annual COLA, you must retire on or before April 1.”
A computed example from an assumed $3,000 monthly benefit, not an SBCERA figure: a COLA at the 2% cap would be 2% of $3,000, a computed $60 a month.
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 SBCERA’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”. SBCERA’s guide says a refund can be paid out, rolled over, or split, and that a service purchase can be funded by a direct transfer that is not treated as a taxable distribution. 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 of Options 1 to 4 reduces the member’s benefit, only that Options 2 and 3 depend on the ages of the member and beneficiary and that Option 4 comes from an actuarial study the member pays for.
- The pages read do not state the amount of the withdrawal charge deducted from a refund, nor the interest rate credited, beyond the lesser of the assumed earnings rate or the six-month Treasury bill rate.
- The pages read do not describe a spousal consent form for choosing an option other than the unmodified benefit.
- The pages read do not describe a partial lump sum, a deferred retirement option program, or any lump sum at retirement.
- The guide is marked Revised February 2025 and was read on October 7, 2026, so a later edition or a change in California law could differ.
Common mistakes
- Assuming a retirement option can be reversed after the first payment; the guide says the option selection is irrevocable once the first retirement benefit is issued.
- Choosing Option 2 or 3 and expecting the benefit to rise if the beneficiary dies first; the guide says the monthly benefit cannot be changed and will remain reduced.
- Taking a refund of contributions expecting to keep a pension claim; the guide says a refund or rollover waives all rights to retirement benefits.
Related on this site: pension refund versus leaving it, single-life versus joint-and-survivor pension, pension buyback calculator, 20 percent withholding on a pension lump sum, California retirement taxes, does California tax pensions and public pension retirement decisions by system.
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Answer againSources
- San Bernardino County Employees’ Retirement Association, SBCERA Member Guide (Summary Plan Description, Revised February 2025): https://www.sbcera.org/sites/main/files/file-attachments/member_guide_2025.pdf?1747157412
- 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.