CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
 
  
 
 

Termination of your membership in CCCERA can occur for a variety of reasons, but usually this means you no longer work for an employer participating in CCCERA. Membership termination can also occur if your job status changes, for example, to less than half-time, or contract. (If you have changed jobs to an ineligible position, such as contract or less than 20 hours per week employment, but are still working for a CCCERA employer, you may not withdraw your contributions.)

 
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You have two options if you formally terminate:

Take a Refund   OR    Defer Your Membership

Refunds
Taking a refund means you "close" your retirement account, by withdrawing all of the contributions and interest you made while a member of CCCERA. You will no longer be entitled to a benefit from CCCERA, even if you are disabled in the future.
  • You will receive your contributions and interest within 6 months of the refund request.
However,
  • Because contributions are made with pre-tax dollars, you will now owe the tax* that was "deferred" while you were employed, unless you make a "direct rollover" of the funds into another tax deferred retirement account, such as an IRA.
*The tax withholding on refunds, by Federal law, is a mandatory 20%, since refunds are considered 'distributions.' CCCERA is required by statute, to withhold this amount. The 20% helps cover you or your beneficiary's Federal income tax. State tax withholding of 2%, to cover state income tax, is optional.
  • If you start working for an employer who offers "reciprocity" with CCCERA within 6 months, you cannot take a refund of your contributions.
  • If you return to membership with CCCERA, and have previously taken a refund, you have no previous retirement service credits to build upon, unless you redeposit.
 

Your refund will NOT include the contributions made by your employer on your behalf.
Your refund will be your contributions and interest only.

The way you receive your refund is very important; tax liability may be an issue.

 

You must have terminated employment with a CCCERA employer at least 45 days before you are eligible for a refund.

Refunds are NOT ALLOWED if you became ineligible due to a job status change (such as part-time, less than 20 hours per week or temporary) but are still working for a participating employer.

 
If you decide to request a refund, you must return a "Distribution Election Form," to CCCERA.
You can request a refund of your contributions and interest, even if your original choice was deferred membership, at any time, unless you are working for a reciprocal employer, or until you begin taking a retirement benefit.  
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You can receive your funds in any way you choose, but remember, if the refund is sent directly to you, under IRS regulations, you may immediately incur tax liability unless you "rollover" the funds into another tax deferred plan.
If you are under 55 years old, you may also be subject to early withdrawal tax penalties, when you file your taxes. (There are some exceptions to this rule.) If your refund is $200 or less, CCCERA is not required to withhold tax from your refund, but you may owe taxes on the amount.
 
Defer Your Retirement Membership
Deferring your retirement membership means you leave your funds in your account at CCCERA.
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  • Your contributions will continue to earn interest until you withdraw them or retire.
  • If you are vested (having 5 or more years of service credit) and leave your funds on deposit until you are eligible to retire, you will qualify to begin receiving a monthly retirement benefit when you are eligible to retire.
  • If you are not vested, you are eligible to receive a retirement benefit the year after you reach age 70 and 1/2.
  • If you return to membership with CCCERA before retirement, you will already have some service credit toward retirement established.
  • If you return to membership, you will not have to redeposit to regain service credit that was cashed out.
  • If you go to work for a reciprocal system, you can choose to link your benefits with CCCERA.
If you leave membership in CCCERA, and do not declare whether to defer or to take a refund, CCCERA will "default" your choice to 'deferred membership.'
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