When you retire, you will receive a specified monthly retirement allowance from LACERA for the rest of your life.
Your continuing retirement allowance is payable on the last business day of the month. The payment amount is fixed, regardless of how many days there are in the month, until the next cost-of-living adjustment.
Your First Payment
If you have just retired, you will usually receive your first allowance payment by direct deposit at the end of the month following the month you retire (for example, if you retire any time in March, you will receive your first payment on the last business day in April). LACERA is mindful of getting retirees their payments in a timely manner. However, if there is a banking issue such as a wrong routing or account number, your first payment may be by mailed check and could take up to an extra week for postal delivery (one of many reasons why it is important to always keep your address updated with LACERA).
Your first payment is usually larger than subsequent payments because it includes a retroactive payment for any days remaining in the month after the date you retired. (For example, if you retire on March 27, your first payment will include five days in March as well as the entire month of April).
Your retirement allowance is subject to federal and state taxes. You may change your withholding at any time.
In general, a member's retirement allowance is not subject to garnishment or other levies except as follows:
- A court may order LACERA to pay a portion of a member’s retirement allowance to satisfy a judgment for spousal or child support or a division of community property.
- A member’s retirement allowance is subject to a tax levy by the IRS or the California Franchise Tax Board for payment of delinquent federal or state income tax.
- If a retired member is convicted in federal court, the court may order the member to pay restitution through a federal garnishment of the member’s monthly LACERA benefit.