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 and vice versa. 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.
Your federal benefits are subject to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
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).
For more information about Social Security and Medicare eligibility, call the Social Security Administration at 800-772-1213 or visit www.ssa.gov.
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.