Retirement allowances are paid on a monthly basis. ACERA mandates signing up for direct deposit, so that your monthly check will be deposited directly into your bank account. Direct deposit is easy, safe, and reliable, and can save you time and money. You will receive a monthly Electronic File Transfer (EFT) statement in the mail each month whenever you are paid through direct deposit. This process ensures the receipt of funds, especially in the case of a natural disaster, Post Office delivery delays, or theft.
A cost of living adjustment (“COLA”) is made annually in accordance with the changes in the Consumer Price Index (“CPI”) for the San Francisco Bay Area. Adjustments are made annually on April 1. Allowances may be increased up to a maximum yearly limit of 3% for tier 1 and 3 members and 2% for tier 2 and 4 members.
See the COLA page in the Retirees section for current COLA information.
Your ACERA retirement benefit allowance may be subject to federal and state income tax. As a part of the retirement application process, you will complete IRS form W-4P (“Withholding Certificate for Pension Annuity Payments”). Be sure to read the instructions carefully, and consult your tax advisor if you have questions. You can update your withholding after benefits begin at any time by completing a new IRS Form W-4P. This form is available on www.acera.org or upon request from ACERA member Services.