Updated October 7, 2026. Quick answer: A Sonoma County Employees’ Retirement Association member retiring chooses one of five payment options, an irrevocable election. The Unmodified option pays the highest benefit and leaves an eligible spouse 60%. Options 2 and 3 reduce the benefit to continue 100% or 50% to a named beneficiary. Leaving before retirement offers a deferred benefit, reciprocity or a refund, and a refund forfeits future benefits for the service refunded. A refund paid to the member carries a mandatory 20% federal withholding unless rolled over. These documents cover Plan A and Plan B.
Other California county employees 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 Sonoma County Employees’ Retirement Association (SCERA): seven website pages and its Distribution of Retirement Contributions Election form with the attached Special Tax Notice, read on October 7, 2026. Any figure here is SCERA’s, or is labeled as a computed example from assumed inputs.
SCERA is a county system: “These descriptions summarize the options established in the County Employees Law of 1937 (CERL).” The documents cover both membership groups. “Plan A, also known as the Legacy Plan, is for members who entered the retirement system prior to January 1, 2013.” “Plan B was established pursuant to the Public Employees’ Pension Reform Act of 2013, covers most members who entered the retirement system January 1, 2013 or later.” Each plan has General and Safety members. State tax questions are on California retirement taxes and does California tax pensions.
Plan A and Plan B: the formula behind the check
The two plans use the same three factors but different numbers. “The calculation of your benefit is simply a matter of multiplying the three factors: age factor x highest average monthly compensation x service credit = your unmodified monthly benefit amount.”
| Plan | Benefit formula labels | Compensation averaged |
|---|---|---|
| Plan A (Legacy), entered before January 1, 2013 | General: 3% @ 60. Safety: 3% @ 50 | Highest one-year average monthly compensation |
| Plan B (PEPRA), most members entering January 1, 2013 or later | General: 2.5% @ 67. Safety: 2.7% @ 57 | Highest three-year average monthly compensation |
SCERA’s worked examples use a General member with a $5550 monthly average and 25 years. Its Plan A example reads “.025 x $5550 x 25 years = $3468.75 monthly benefit”. A computed check of SCERA’s own Plan A inputs: .025 times $5550 times 25 years is a computed $3,468.75, matching SCERA. The Plan B example, at .018, prints $2497.75, but its inputs multiply to a computed $2,497.50. A printed example is not a substitute for a formal estimate.
When a pension can start
“You are vested when you have the equivalent of five years service credit.” “The eligibility requirements for service (non-disability) retirement are determined by the Plan you are in.” The table restates SCERA’s lists; each row is an either-or test.
| Group | Service retirement eligibility |
|---|---|
| Plan A General | 10 years of service and age 50, or 30 years of service at any age, or age 70 at any service |
| Plan A Safety | 10 years of service and age 50, or 20 years of service at any age, or age 70 at any service |
| Plan B General | 5 years of service and age 52, or age 70 at any service |
| Plan B Safety | 5 years of service and age 50, or age 70 at any service |
Part-time members have an exception: “Part-time members may be eligible to retire prior to achieving 10 years of earned service credit.” SCERA lists four criteria, including age 55 and “have held a position with a SCERA-covered employer for 10 years”, and asks such members to contact it.
How and when to apply
“Within one year of your anticipated retirement date please contact SCERA for an audit of your account.” “SCERA recommends that you request a formal estimate if you leave employment before you are eligible to retire, have transferred to a reciprocal system, or if there is a division of your benefit as the result of a divorce.”
“SCERA can accept your completed application no more than 60 days prior to your retirement date.” “Backdated applications cannot be accepted.” “If you are currently working for a SCERA employer you must submit the completed application no later than the last day you are in paid status.” “Deferred and Transferred members must submit the completed application no later than the first day of retirement.”
The election: five options and one permanent choice
“At the time you retire, you will make an irrevocable election of one of the following benefit payment options.” “You may not change your option choice after retirement, even if your life situation changes.” The table summarizes SCERA’s description of the five options.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Unmodified | The highest benefit available | 60% of the benefit continues for life to an eligible spouse or state registered domestic partner, or until majority to minor children; any named beneficiary may instead receive remaining contributions and interest, if any remain, as a lump sum |
| Option 1 | A reduced benefit | Remaining contributions and interest, if any remain, as a lump sum to any named beneficiary |
| Option 2 | The most reduced benefit | 100% of the member’s reduced benefit for the lifetime of the named beneficiary (limited by an IRS rule for a non-spouse) |
| Option 3 | A reduced benefit | 50% of the member’s reduced benefit for the lifetime of the named beneficiary |
| Option 4 | A reduced benefit | A percentage of lifetime continuance chosen by the member for each of several beneficiaries |
The pages read do not state how much any reduced option cuts the monthly benefit. SCERA says the member’s online estimates cover each option, and a formal estimate comes from SCERA. The general trade-off is covered on single-life versus joint-and-survivor pension.
What each option does for a survivor
Under the Unmodified option an eligible spouse or state registered domestic partner gets “60% continuance of member’s benefit for life”, and minor children get “60% continuance of member’s benefit until child reaches majority”. The footnotes define the eligible survivors: a spouse or partner means “Married or state registered domestic partners for at least one year prior to your retirement date”. A minor child means “Under the age of 18, or under the age of 22 if unmarried and in school full time”.
Option 1 pays out unreturned money rather than a lifetime continuance, and SCERA adds that “Lump sum payments are only in the amount of the member’s remaining contributions and interest at the time of the member’s death”. For Option 2, SCERA calls it the “Most reduced benefit” and says the survivor gets “100% continuance of the member’s reduced benefit for lifetime of beneficiary”. Option 3 pays “50% continuance of the member’s reduced benefit for lifetime of beneficiary”. Under Option 4 the member “May designate a specific percentage of lifetime continuance to be paid to each of your beneficiary(ies)”, and “Costs associated with calculating the benefit will be borne by the member”.
A computed example from assumed figures, not SCERA figures: under the Unmodified option, an assumed full benefit of $3,000 a month leaves an eligible spouse 60% of $3,000, a computed $1,800 a month. Under Option 2, an assumed reduced benefit of $2,400 leaves 100% of $2,400, a computed $2,400, and under Option 3 an assumed reduced $2,400 leaves 50% of $2,400, a computed $1,200. The $2,400 is an assumed input, since the reduction is not published; a real quote must come from SCERA.
What is irrevocable, and the Option 2 limit for a non-spouse
The election is permanent once made, and SCERA says life changes do not reopen it. The options page also has a column on whether the member can change the beneficiary later. It shows no for each continuance and yes only for the lump-sum payouts of Unmodified and Option 1, so a named survivor under Option 2, 3 or 4 cannot be swapped even if the relationship changes. Compare the survivor mechanics on survivor benefit with a government pension.
Option 2 carries a tax-law limit when the beneficiary is not a spouse: “The Internal Revenue Code (IRC) limits the percent of continuance that can be paid to a non-spouse beneficiary under Option 2.” “The percent allowed depends on your age at retirement, and the adjusted age difference between you and your beneficiary.”
Lump sums: what the documents describe
In the documents read, lump sums appear as payments to a beneficiary after death and as the refund of contributions after leaving, covered below. The pages read do not describe a lump-sum retirement option, a partial lump sum or a deferred retirement option plan (DROP). The cash choice that exists is the refund, which ends the pension rights for the service refunded. For comparing a lump sum to a lifetime check in general, see pension lump sum versus monthly annuity break-even.
Leaving before retirement: four paths
SCERA says that if a member leaves before being eligible to retire, “you will be asked to make a decision about the contributions and accrued interest in your retirement account”. “Members are vested upon the completion of five years of service (including earned and purchased service for a SCERA-covered employer, and reciprocal service. Purchased public service is not included).”
Deferred and vested: “If you are vested, you may elect to become a deferred member by leaving your accumulated contributions and interest on deposit, and later begin receiving a monthly retirement benefit.”
Deferred and not vested: “If you are not vested, you may elect to become a deferred member by leaving your accumulated contributions and interest on deposit and continue to earn interest.”
Reciprocity: “Reciprocity is an election you make with the retirement system. It is not established automatically.”
Taking a refund: what it ends
The refund is the exit choice. “you have the option of taking a refund of your contributions and interest credited at the plan’s actuarially assumed investment return rate prior to 2019 and the 10 Year Treasury Note rate from 2019 forward, payable directly to you or rolled into another qualified retirement account.”
What it costs: “If you withdraw or rollover your funds, you will not be eligible for any future retirement benefit for the period of service refunded unless you re-enter SCERA membership and redeposit the withdrawn funds plus interest.” The form adds a paperwork step: it has a line for “Spouse/Domestic Partner Signature”, marked “required for withdrawals/rollovers”. More on the choice is on pension refund versus leaving it.
The form also limits who may withdraw. For deferred vested members, withdrawal or rollover is barred for someone “employed in any capacity with a SCERA-covered agency unless you meet the following age requirements based on your SCERA membership:”: “Age 58 or older” for General members and “Age 50 or older” for Safety members. For deferred non-vested members, it is barred if the member is “employed in any capacity with a SCERA-covered agency” or “an employed member of a California state funded retirement system”. Under reciprocity, “Your funds must remain on deposit with SCERA and cannot be withdrawn unless or until you terminate membership with the reciprocal system and withdraw your funds from that system.”
A decision to leave money on deposit can be undone: “An election to allow contributions to remain on deposit may be revoked by the member at any time, prior to retirement, if you meet the Withdrawal / Rollover Employment Requirements below.”
How a refund is paid and what is withheld
The form lets the member split the money. “Combined amounts must equal the total amount in your SCERA account.” “Refunds of taxable contributions and interest in an amount over $200 (not rolled over into a traditional IRA or qualified retirement plan) will be subject to a mandatory 20% Federal tax that SCERA will withhold before issuing a refund.” “Refunds of less than $200 will not be subject to withholding.”
The same form warns that if the member is younger than 59 and a half, “the refund may be subject to a 10% Federal excise tax and a 2.5% State excise tax for the year the funds are withdrawn”.
A computed example from an assumed $10,000 taxable refund paid to the member, not a SCERA figure: 20% of $10,000 is a computed $2,000 withheld for federal tax, leaving a computed $8,000 in cash before any state withholding the member requests on the form. The final tax can be more or less than the withholding, and the form directs readers to its Special Tax Notice. See 20% withholding on a pension lump sum.
Coming back to SCERA after leaving
“If your funds are still in the retirement system and you return to SCERA membership, your earlier service credit is intact, and you will resume earning service credit.” “If you withdrew your funds, you may redeposit your previously withdrawn contributions, plus the interest your funds would have earned if you had left them on deposit.” “Such a redeposit would restore the service credit that was forfeited by the withdrawal.”
Buying service credit
“Most service credit is earned as you work. However, you may be eligible to purchase some additional service credit.” SCERA lists these types as eligible for purchase: “Service prior to membership”, “Leave without pay”, “Redeposit of withdrawn contributions”, “Public service/Military service”, and military leave without pay.
A purchase does not help every goal equally. “Public service and military service do not help you become eligible for vesting or retirement, but will add to your monthly benefit amount.”
Cost comes from SCERA, not a table. “You can find out how long it will take to recover your investment by dividing the cost of the investment by the monthly benefit.” SCERA’s example uses a cost of $3,936 and an additional benefit of $80 a month and gives 50 months. A computed check: $3,936 divided by $80 is a computed 49.2 months, or about 4.1 years, so the printed 50 months is a rounded-up figure. A computed example from assumed numbers, not SCERA figures: if an assumed $20,000 purchase raised the pension by an assumed $250 a month, it would take $20,000 divided by $250, a computed 80 months to recover. See the pension buyback calculator.
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 SCERA’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”. SCERA’s Distribution form describes the same mandatory 20% federal withholding on a 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 of SCERA’s printed examples do not match their own inputs: the Plan B example prints $2497.75 against a computed $2,497.50, and the service credit example prints 50 months against a computed 49.2 months. Both are illustrations, and the member’s own estimate decides.
What this page could not settle
- The pages read do not state how much Option 1, 2, 3 or 4 reduces the monthly benefit; the reduced options are described only as reduced, and by how much depends on the member’s record.
- The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP.
- The pages read do not state a cost-of-living adjustment rule; a cost-of-living page was not among the documents read.
- The pages read give an interest crediting rate only for a refund (the plan’s actuarially assumed investment return rate before 2019, the 10 Year Treasury Note rate from 2019 forward); they do not say whether the same rate applies while a deferred vested member’s contributions stay on deposit.
- The pages read do not give a price for any service credit purchase, only the method and an example.
- The age factor tables that SCERA links for each plan, death benefits before retirement, disability retirement, divorce division and retiree health insurance were not read for this page.
Common mistakes
- Treating the option as changeable later; SCERA says the election is irrevocable.
- Choosing Option 2, 3 or 4 and expecting to swap the beneficiary; the options table shows no beneficiary changes for those continuances.
- Taking a refund without weighing what ends; SCERA says a refund forfeits the right to future benefits for the service refunded.
- Expecting a refund check in full; a mandatory 20% federal withholding applies to a taxable refund that is not rolled over.
- Applying too early or too late; SCERA takes an application no more than 60 days before the retirement date, and no backdating.
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
- SCERA, Benefit Payment Options (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/getting-ready-to-retire/benefit-payment-options
- SCERA, Leaving Before Retirement (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/know-your-benefits/leaving-before-retirement
- SCERA, Distribution of Retirement Contributions Election, Form L126s, with Special Tax Notice Regarding Plan Payments and Federal Income Tax, Form M201b (PDF): https://scera.sonomacounty.gov/Microsites/SCERA/Documents/Forms/Distribution%20of%20Contributions.pdf
- SCERA, Eligibility Requirements (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/getting-ready-to-retire/eligibility-requirements
- SCERA, How to Retire (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/getting-ready-to-retire/how-to-retire
- SCERA, Service Credit (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/when-you-are-hired/service-credit
- SCERA, Calculating Your Benefit: Plan A Members (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/calculating-your-benefit/plan-a-members
- SCERA, Calculating Your Benefit: Plan B Members (web page, read October 7, 2026): https://scera.sonomacounty.gov/active-deferred/calculating-your-benefit/plan-b-members
- 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.