Separation from Service

If you separate from Department and City service, you may withdraw your retirement contributions plus accrued interest.  If you withdraw your contributions and interest, the taxable portion of your withdrawal is subject to mandatory withholding for Federal income tax, unless you roll it over to a tax-qualified plan or an Individual Retirement Account (IRA), and you may be subject to additional Federal and California state income taxes.   Please consult with your financial advisor when making the decision to withdraw or rollover your funds from the Plan. 

Withdrawing your contributions from the Plan will terminate your rights to all Plan benefits. Before requesting a withdrawal, please speak with the Retirement Plan Office about your specific situation, especially if you are receiving Disability Benefits, appealing a discharge for cause, have a divorce claim, or a wage garnishment order.

If you contributed to the Additional Annuity, and you elect to withdraw your retirement contributions and interest, you must also withdraw your Additional Annuity program.

To request an application for a withdrawal or rollover of your funds, please call the Membership Section at (213) 367-1695. It will take approximately 8-10 weeks to process your withdrawal upon receipt of the application.

Discharge for Cause
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If you are appealing a termination, you will not be able to apply for a withdrawal until the Civil Service Commission has ruled on your case.

Disability Benefits
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If you have an illness or injury that occurred prior to your separation from service, you may be eligible to continue to receive Disability Benefits at a reduced rate if you do not withdraw your funds on deposit with the Plan.

Please contact the Disability Section at (213) 367-1680 if you have any questions. 

Transfer to City Service
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If you are transferring to City service, you will not be able to request a withdrawal of your funds until you have completely separated from both Department and City service.   However, you may request a plan-to-plan transfer of your funds to LACERS or LAFPP if the receiving system approves the transfer.

Your request to transfer your funds will terminate your rights to all Plan benefits with the Department and your tier status.  If you should later return to Department employment, you will be considered a new employee, subject to the Plan’s membership eligibility provisions.

If you contributed to the Additional Annuity, upon your request to transfer your retirement contributions and interest to LACERS or LAFPP, you must also make a distribution election for your Additional Annuity account since the Plan does not allow a partial withdrawal. 

Required Minimum Distribution
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Under Internal Revenue Service rules, those born January 1, 1951 and after must take a distribution from the Plan no later than April 1 of the year following you reaching age 73.  Failure to do so may result in substantial tax penalties.

Since the Plan does not allow a partial withdrawal, you must take a distribution of your entire funds on deposit with the Plan at the time you select a disbursement. 

Vesting
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A valuable feature of your Plan benefits is the provision for "vesting",  which provides that even if you separate from Department employment before you are eligible for a Formula Pension, you may leave your contributions and interest on deposit with the Plan and receive a Vested Right Retirement. 

A Vested Right Retirement is not a Formula Pension, and does not include cost of living, health or dental insurance benefits, or an Eligible Spouse/Domestic Partner continuance. 
 
Since there is no Eligible Spouse/Domestic Partner continuance, only Options Full, A, B, and C are available to you.