Social Security and Medicare
On January 1, 1983, the County of Los Angeles withdrew its employees from the Social Security system. The withdrawal stopped contributions toward both Social Security and Medicare, potentially affecting your eligibility for Social Security and Medicare benefits.
Social Security Eligibility
Employees may be eligible for Social Security if they earned enough credit prior to the County’s withdrawal from the Social Security system; through Social Security-covered outside employment; or through their spouse/ex-spouse.
Social Security can affect your LACERA retirement allowance. For Plan E members employed by the County prior to 1983, your LACERA retirement allowance is subject to a reduction for Social Security-covered service while employed by the County.
Prior to January 1, 2024, retired member federal benefits were subject to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), but the Social Security Fairness Act ended WEP and GPO in January 2025 with an effective date of January 2024. As a result, the Social Security Administration (SSA) no longer reduces retirement, spousal, or survivor benefits for LACERA members eligible for Social Security. If your benefits were previously reduced, SSA must recalculate them retroactive to January 1, 2024. If you never applied for Social Security benefits due to WEP or GPO, you may now qualify and should consider applying. For more information about the repeal of the WEP/GPO, payment schedule, applying for spousal benefits, and other updates, visit the Social Security Administration’s information page about the Social Security Fairness Act.
Medicare Eligibility
Employees hired prior to March 31, 1986, do not contribute to Medicare. Employees who did not contribute enough toward their Medicare benefits prior to this date might still qualify for Medicare through other means, such as through a spouse/ex-spouse, Social Security disability, or Social Security-covered outside employment.
Employees hired after March 31, 1986, contribute toward Medicare benefits through a deduction known as the federal Health Insurance Tax (H.I.T).
LACERA Allowance Reductions: Pre-1983 Employment
If you are a Plan E member who worked for the County prior to its withdrawal from Social Security, a percentage of your estimated Social Security benefit will be subtracted from your retirement allowance, based on the total number of months of County service covered by Social Security.
If you retire after age 62, you may voluntarily provide evidence of your actual Social Security benefit to LACERA within six months after retirement. LACERA will use the actual benefit to recompute your retirement allowance. Otherwise, LACERA will use the actuarial tables to compute your Social Security benefit offset and your retirement allowance.