When you retire, you receive a monthly paystub (statement of earnings and deductions), which includes your withholding, allowances, deductions, and net pay. For direct deposit, you receive the same statement of earnings information in the form of an automatic deposit receipt (ADR). See detailed descriptions of the different paystub fields below.
For more information about the taxability of your allowance and options for changing your withholding, visit the Tax Requirements page.
Paystub Changes for 2024
In January 2024, LACERA is updating the monthly paystub to include information requested on the most recent versions of the federal and state tax withholding forms used by retired members and to be consistent with information provided on paystubs by other California employers. Here’s what to expect:
- Everyone will see new fields and field headers on the paystub.
- You will see a new Payee ID field. (This number is the last four characters of your LACERA-assigned ID, not your County ID or Social Security number. Displaying only the last four characters helps protect your data security in case an unauthorized person views your paystub.)
- In the Federal Withholding section, you will see a field header change from Additional Withheld to Additional, but no changes in the displayed amount.
- If you based your federal tax withholding on a 2022 or later version of W-4P and had amounts for the following steps, you will see those amounts on your paystub.
- Additional income in Step 2 will be included in the paystub Other Income field
- Claimed tax credit amounts for Step 3 will be included in the paystub Credits field
- Additional income for Step 4(a) will be included in the paystub Other Income field
- Claimed deductions amount for Step 4(b) will be included in the paystub Deductions field
- If you based your federal tax withholding on a 2022 or later version of W-4P but did not have amounts for any of the form steps listed above, you will see the new fields on the paystub but no amounts.
- If your federal withholding is based on a 2021 or older version of the W-4P, you will see new federal withholding election fields on your paystub but no amounts, since they do not apply.
- If you elected not to have federal income tax withheld (regardless of the W-4P version), you will see the new federal withholding election fields on your paystub but no amounts.
- In the California State Withholding section, you will see the field header change from Additional Withheld to Addtnl/Desig., but no changes in the displayed amount.
Following are descriptions of the different fields and codes on your LACERA paystub.
Statement of Earnings and Deductions
Payee’s LACERA ID (adding for 2024): Unique identification number assigned to the account holder by LACERA. This is different than a County employee number or Social Security number.
Reference No.: Reference number assigned to the payment.
Payment Type: The retirement benefit type, such as service or disability.
Total Gross YTD: Total year-to-date gross amount paid for the Payment Type. The gross distribution amount on the 1099-R form is based on the amounts from this field.
Total Taxable YTD : Total year-to-date taxable amount for the Payment Type. The taxable amount on the 1099-R form is based on the amounts from this field.
Total Non-Taxable YTD: Total year-to-date nontaxable amount for the Payment Type. For retirement benefit types other than service-connected disability, the amount represents the recovered after-tax contributions component of the payment. The employee contributions amount on the 1099-R form (currently Box 5) is based on the amounts from this field.
Tax Withholding Status: The marital status indicated on the W-4P form or assigned by default if no valid W-4P election was made. The marital status shows as "Exempt" if an election was made on W-4P to have no federal income tax withheld.
Exemptions: The number of personal allowances claimed on a 2021 or older W-4P or assigned by default if no valid W-4P election was made. Allowances only apply to tax withholding that is still based on a 2021 or older W-4P, so the field is blank if the withholding is based on a 2022 or later W-4P.
Additional (field header changing for 2024): The additional or extra withholding amount requested on W-4P. The amount is from Step 4(c) on a 2022 or later W-4P or Line 3 on a 2021 or older W-4P.
Other Income (adding for 2024): The total of the additional taxable income provided in Steps 2 and 4(a) on a 2022 or later W-4P.
Credits (adding for 2024): The total of the tax credits for children, other dependents, and other credits claimed in Step 3 on a 2022 or later W-4P.
Deductions (adding for 2024): The alternative deductions amount provided in Step 4(b) on a 2022 or later W-4P.
Tax Withholding Status: The marital status indicated on the DE 4P form or assigned by default if no valid DE 4P election was made. The marital status shows as "Exempt" if an election was made on DE 4P to have no California income tax withheld or if no California income tax was withheld by default for a non-California resident.
Exemptions: The number of regular withholding allowances claimed on Line 2a on DE 4P or assigned by default if no valid DE 4P election was made.
Addtnl/Desig. (field header changing for 2024): Abbreviation for Additional/Designated. The amount in the field is either the additional withholding amount requested on Line 3 on DE 4P or the designated amount requested on Line 4 on DE 4P.
Total Allowances, Deductions, and Net Pay
Allowances: Itemized list of payment components (such as recovered member contributions or cost-of-living) that determine the gross payment amount. Also includes subsidies such as Medicare Part B premium reimbursements, which impact the net payment amount but not the gross.
Examples of Allowances and Codes:
- Annuity Taxable
- This is the taxable portion of the allowance derived from previously untaxed contributions made by the member.
- These are contributions made after August 1, 1983 (when all contributions were considered before tax or were before-tax payments for Plan Transfers or service credit purchases).
- Annuity Non-Taxable
- This is the nontaxable portion of the allowance. These are contributions that were made after tax, meaning members have already paid tax on these contributions. There may be contributions made before August 1, 1983 (when all contributions were considered after tax) or after-tax payments that paid service credit purchases.
- Cost-of-Living Adjustment
- This represents the accumulated cost-of-living increases granted by the Board of Retirement on April 1 each year.
- Cost-of-Living Adjustment—Supplement
Code: COLA Supp
- This was a one-time-only 2 percent cost-of-living increase granted by the Board of Retirement effective September 1, 1998, for those members whose COLA percentage accumulation exceeded 25 percent as of that date. It is a permanent part of the member’s allowance.
- Part B Amt
- Medicare Part B reimbursement
- Payment Overflow
Code: Pay O/Flow
- This is a prior period pay adjustment for the Medicare Part B reimbursement. This means LACERA paid one or more Part B reimbursements this payroll cycle. For questions regarding this pay component, please contact LACERA’s Retiree Healthcare Division.
- Pension Reserve
Code: Pension RS
- This is the taxable portion of the allowance derived from contributions made by the County or District.
- Prior Paid
Code: Prior PD
- This shows up often on the first check. It is meant to show the amount that is retroactive to your retirement date. So, if you retired on 04/15/20 and didn’t get on payroll until 05/31/08, it would be the portion from 04/15/20 to 04/30/20.
- Prior Service Portion
- CERL was passed in 1937, but the laws did not become effective until 1/1/38. Members (or more likely their survivors) who worked from 1937-38 may receive a portion of their benefit from this time period.
- Supplemental Targeted Adjustment for Retirees Cost-of-Living Adjustment
Code: STAR COLA
- This represents the temporary cost-of-living benefit granted by the Board of Retirement on January 1 and funded for the calendar year for those members whose COLA percentage accumulation exceeded 20 percent as of that date. This special benefit is subject to Board of Retirement approval. It is only granted for one year at a time and can only be funded if there are sufficient surplus investment earnings.
Deductions: Itemized list of payment deductions such as those for federal/state income tax withholding or insurance premiums. The deduction amounts impact the net payment amount.
Many retired members and survivors have enrolled to have agency deductions taken out of their monthly benefits. These deductions are normally for credit unions, loan payments, savings account deductions, union or association dues, long-term care insurance, and supplemental insurance. Members and survivors may also have deductions for Retiree Healthcare benefits if their subsidy does not cover their monthly premiums.
If you would like to change your agency deductions, contact the agency directly. LACERA cannot change the amount of your agency deductions, except as instructed by the agency. If you would like to change your LACERA Retiree Healthcare plan, please contact LACERA’s Retiree Healthcare Division. (If your healthcare coverage is through Firefighters Local 1014, contact them at 310-639-1014.)
Tax Withholding Deductions and Codes
- Federal Taxes
Code: Fed Tax
- Your federal taxes deducted from your check, based on tax withholding selections.
- California State Taxes
Code: CA St Tax
- Your California state taxes deducted from your check, based on tax withholding selections.
- If you have questions about your withholding status, we recommend you speak with your tax advisor. LACERA does not offer tax or legal advice.
- Visit Tax Requirements for more information about the taxability of your allowance and options for changing your withholding.
Total Allowances: Total of the payment components that determine the gross payment amount.
Total Deductions: Total of the payment deductions.
Net Pay: Total Allowances less the Total Deductions.