Retirees & Beneficiaries
Generally, your retirement benefit is considered taxable for both federal and state income tax purposes. However, in some cases, all or a portion of your benefit may be excluded from your gross income for federal and/or state income taxes.
SBCERA Members* do not participate in Social Security. In other words, your earnings from your SBCERA-covered employment are not covered under Social Security.
However, most SBCERA Members do participate in Medicare. Medicare is our country’s health insurance program for people age 65 or older. You should apply even if you do not intend to retire yet.
Any retiree considering returning to work with an SBCERA participating employer should contact SBCERA before working.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) imposes restrictions on the ability of a retiree to work for an employer in a retirement system while also collecting a pension from that system. In addition, existing state and federal laws already placed restrictions on employees who return to work.
Retiree Work Restrictions