Los Angeles County Employees Retirement Association · rates, along with an enrollment form. To...

Los Angeles County Employees Retirement Association

LACERA Will Assist You through the Death Benefit Process

A time of loss is a difficult and emotional period. We understand and we’re here to help you with any LACERA-related matters.

We offer this brochure to guide you through the benefit process and help expedite your receipt of any LACERA death and/or continuing benefits to which you may be entitled.

As the survivor or beneficiary of a LACERA member, you are part of the LACERA family. As such, we are committed to providing you with the benefits designated by your loved one’s LACERA retirement plan.

The relationship LACERA builds with each member is personal… and enduring. Now that the member is gone, the relationship endures with you, through continuing benefits.

The Los Angeles County Employees Retirement Association (LACERA) is governed by the County Employees Retirement Law of 1937 (CERL) and the California Public Employees’ Pension Reform Act of 2013; LACERA retirement benefits are administered in accordance with these laws. If there is any conflict between statements made herein and provisions of the applicable retirement law, the law will prevail.

For additional information, call LACERA at 626-564-6132 or 800-786-6464 or visit us at 300 N. Lake Avenue, Suite 100, Pasadena, CA 91101-4199.

Visit our website: lacera.com

Death and Continuing Benefits

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Initiating the Benefit Process STEP 1: NOTIFY LACERA OF THE MEMBER’S DEATH

• CallLACERAat800-786-6464assoonaspossibletoreportthemember’sdeath.You will be required to submit the original death certificate. LACERA will image the document and return it to you. If the original is not available, LACERA will accept a certified copy of the original, stamped by the county clerk or (depending on the jurisdiction) equivalent official. LACERA cannot accept a photocopy of the death certificate.

• If you have the decedent’s LACERA Member Information Card, provide the information listed on the card when you notify LACERA of the death.

STEP 2: LACERA RESEARCHES THE CASE• Upon notification of the member’s death, LACERA will research the

member’s case to determine any applicable benefits and beneficiaries.

STEP 3: SUBMIT CLAIM FORMS AND OTHER REQUIRED DOCUMENTS

• Withinapproximatelytenworkingdaysafterreceivingnotificationofthedeath,LACERAwillsendyouclaimformsandrequestsforotherdocuments. Required documents vary according to the specifics of the case. Commonly required documents include original certified marriage certificate or Certificate of Registered Domestic Partnership, and original certified birth certificate(s).

• YourSocialSecurityNumber(orTaxIdentificationNumber)is required before any benefits can be paid. TopaybenefitstoaTrust,we must have the EIN issued to the Trust by the Internal Revenue Service.

STEP 4: RECEIVING YOUR BENEFIT PAYMENT*• Death benefit payments to eligible survivors generally begin one

payroll cycle after LACERA has been notified of the member’s death.**

• Death benefit payments to named beneficiaries generally begin 30 days from the date all required documents have been received by LACERA.

*Benefit processing time may vary according to how soon LACERA receives all required documents.**See page 20 for definitions of eligible survivors.

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Death and Continuing Benefits

Table of Contents

Section I: Death of a LACERA Retiree

Continuing Benefits .............................................. 5Taxability of Continuing Benefits ......................... 7Death/Burial Benefit ............................................. 8

Section II: Death of an Active LACERA Member

Safety MemberDeath and Continuing Benefits ............................ 9Taxability of Continuing Benefits ....................... 12

General Member Death and Continuing Benefits ............................ 13 Taxability of Continuing Benefits ....................... 16

Section III: Death of a LACERA Deferred Member

Death Benefits ...................................................... 18Taxability of Death Benefits ................................ 18

Section IV: Resources

Terms to Know ..................................................... 19Important Phone Numbers ................................... 22Contact Us ............................................................ 22


Death of a LACERA Retiree

Section I

Death of a LACERA RetireeContinuing Benefits 1.Q:HowareLACERAcontinuingbenefitsandeligibility determined? A. The benefits are determined by the Retirement Option the decedent elected at the time of retirement. Eligibility for continuing benefits benefits depends on the deceased member’s retirement plan, and your relationship to the member.

2.Q:HowwillIfindoutwhichbenefitsIamentitledtoreceive?A. Upon notification of the member’s death, LACERA researches the member’s case to determine the available death benefits. It also reviews the member’s account (including the member’s Beneficiary Designation Form) to identify any eligible survivors or beneficiaries. Once applicable benefits and eligible survivors or beneficiaries are determined, LACERA sends the appropriate paperwork to the applicable parties.

3.Q:Whatisamonthlycontinuingallowance? A. A monthly continuing allowance is a benefit LACERA pays to eligible survivors or beneficiaries of deceased LACERA retirees. The allowance is a percentage of the monthly retirement allowance the decedent received during his or her lifetime. It is paid each month for the remainder of the recipient’s life (regardless of any future change in the recipient’s marital status).* *A continuing allowance to an eligible minor child continues until the child is no longer eligible.

4.Q:AreallLACERAcontinuingbenefitspaidasmonthlyallowances? A. No. Depending on the retirement plan, some members can elect to have their continuing benefit paid as a single lump-sum payment, rather than a continuing allowance. The structure of your continuing benefit is determined by the Retirement Option the decedent elected at retirement.

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5.Q:IamthesurvivingspouseofaLACERAretireewhojustdied.Can’tIjustcontinuetoreceivemyspouse’smonthlyretirementallowance? A. No. Accordingtothelaw,LACERAretirementallowancesendthemonthoftheretiree’sdeath. That’s why it’s so important to promptly notify LACERA of the death. The sooner LACERA is notified, the sooner a benefit account in the survivor’s name can be established.

6.Q:Myspouse,whowasaLACERAretiree,justdied.WhenwillLACERAmakemyspouse’sfinalretirementallowancepayment? A: LACERA will issue a full and final retirement allowance payment on the last business day of the month in which the retiree died.

7.Q:Arecontinuingmonthlybenefitstosurvivorsordesignatedbeneficiarieseligibleforcost-of-livingadjustments(COLA)? A: Yes. The COLA provision in the law that applies to retirement allowances also applies to continuing benefits to eligible survivors or designated beneficiaries. Retiree allowances and continuing benefits are adjusted by the Board of Retirement each April 1, based on changes in the Consumer Price Index (CPI).

8.Q:CanInameabeneficiarytoreceivemymonthlycontinuingallowanceaftermydeath? A: No. The allowance will be discontinued upon your death.

9.Q:Myspouse,whowasaLACERAretiree,justdied.AmIeligibleforaLACERA-administeredhealthplan? A: It depends on the circumstances of your situation. Generally, any survivor or beneficiary who is receiving a continuing monthly allowance from LACERA and who qualifies as a surviving eligible dependent (as defined by LACERA’s Retiree Healthcare Administrative Guidelines) is eligible to enroll in LACERA-administered healthcare coverage.* Survivors and dependents who had continuous coverage under the decedent’s LACERA-administered health plan, but are not eligible for a continuing monthly allowance, may apply for continued healthcare benefits (for a maximum of 36 months) under the Consolidated Omnibus Budget Reconciliation Act (COBRA).*Member’s surviving spouse, domestic partner, minor child(ren), or disabled dependent children who meet eligibility requirements.



When an eligible survivor notifies LACERA of a member’s death, LACERA mails a healthcare benefits information packet to the survivor. The packet includes information on benefits and premium rates, along with an enrollment form.Toavoidlateenrollmentrules,thesurvivormustnotifyLACERAwithin30daysofthemember’sdeath.

Note: Under The Affordable Care Act, individuals who are ineligible to enroll in Medicare have the option to buy health insurance coverage through an insurance exchange. Some may find that option preferable to continuing coverage in a LACERA-administered health plan. To determine your best course of action, review all available coverage options and premium costs.

10.Q:Myspouse,whojustdied,wascoveredunderaLACERA-administeredhealthcareplan.IfIcontinueinaLACERA-administeredhealthcareplan,willtheCountysubsidizemypremiums? A: If the County was subsidizing your spouse’s (or domestic partner’s) LACERA-administered healthcare premiums, based on his or her length of County service, the County will contribute the same percentage toward your premiums (as the eligible survivor).

Taxability of Continuing Benefits 1. Q: Are continuingmonthlyallowancestaxable? A: Yes, under most circumstances.* However, you may elect to have federal or California state tax withheld from your continuing allowance at whatever rate you choose. (California income tax is not withheld from your continuing allowance if you reside outside of California.) Or you may elect not to have withholding deducted from your continuing allowance. You may designate your tax withholding elections on tax form W-4P/DE-4P, which LACERA will send you.

Note: Without a completed tax form W-4P/DE-4P on file, LACERA is required by law to withhold taxes from your allowance as if you were a married person claiming three (3) withholding exemptions.*Exceptions may apply in certain cases where the decedent had been granted a service-connected disability retirement.

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2.Q:DoesLACERAreporttheamountofmycontinuingallowancetotheIRS? A: Yes, as required by law. Each January, LACERA will send you a copy of the Form 1099-R it submits to the IRS. The form indicates the taxable amount of the benefit paid to you in the previous year. Death/Burial Benefit 1.Q:DoesLACERApayadeath/burialbenefittothebeneficiaryofaretiredmember? A: Yes. A one-time lump-sum payment of $5,000 is payable upon the death of a LACERA retiree.* It is payable to the named beneficiary(ies) of the decedent, independent of any applicable continuing benefits.

In cases where more than one beneficiary has been designated, the $5,000 is divided among all named beneficiaries in the percentages indicated on the decedent’s Beneficiary Designation Form.*Upon the death of a retired reciprocal member, LACERA pays the death/burial benefit only if the member’s last employing agency was L.A. County or an outside district.

2.Q:Aretaxeswithheldfromthe$5,000death/burialbenefit? A: Yes. Federal law requires LACERA to withhold 20 percent in federal income tax. Additionally, LACERA must withhold an additional two percent in state tax if the recipient resides in California.

3.Q:Isthe$5,000death/burialbenefiteligibleforatax-deferredrollovertoatraditionalIRAoreligibleemployerplan? A: In most cases, yes. Benefit rollovers postpone taxation of the benefit until it is paid to you. However, individuals who reach age 70.5 on or before December 31 in the year the benefit is disbursed are not eligible to roll over their death/burial benefit. California residents are subject to state income tax on the benefit.

Information on the taxability of payments from qualified employer plans (such as LACERA’s) is available in IRS Publication 575, Pension and Annuity Income, and IRS Publication 590, Individual Retirement Arrangements. These publications are available from your local IRS office, on irs.gov, or by calling 1-800-TAX-FORMS. For


Death of an Active LACERA Member — Safety

questions regarding your personal situation, consultwithaprofessionaladvisor;LACERAdoesnotofferlegalortaxadvice.

4.Q:WillLACERAsendmearolloverform? A: If you are the beneficiary of a $5,000 death/burial benefit, LACERA will send you a Beneficiary Benefit Payment Rollover Form.

Section II

Death of an Active LACERA MemberSafety Member Death and Continuing Benefits

1.Q:HowdoesLACERAdeterminewhichbenefitsapplywhenanactivesafetymemberdies?A: Active safety member death and continuing benefits are based on category of death (service-connected or nonservice-connected) and vesting status (length of service). Eligibility for a service-connected disability benefit is determined by the Board of Retirement through the disability retirement application process.

2.Q:Howiseligibilityforthosebenefitsdetermined?A: Benefit eligibility is based on your relationship to the decedent.

3.Q:DoesLACERApaydeathbenefitsonallactivesafetymemberdeaths?A: Yes. Pre-retirement (active member) death benefits are included in all LACERA safety retirement plans (Safety Plans A, B, and C).

4.Q:Howarebenefitspaidwhenanactivesafetymemberdies? A: Depending on the circumstances of the case, benefits may be payable as a lump-sum cash payment or a continuing monthly allowance, or a combination of the two.

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5.Q:HowwillIfindoutwhichbenefitsIamentitledtoreceive? A: Upon notification of the member’s death, LACERA researches the member’s case to determine the available death benefits. It also reviews the member’s account (including the member’s Beneficiary Designation Form) to identify any eligible survivors or named beneficiaries. Once applicable benefits and eligible survivors or named beneficiaries are determined, LACERA sends the appropriate paperwork to the applicable parties. 6.Q:Whatifthedecedentdidn’tcompleteaLACERABeneficiaryDesignationForm? A: According to the law, the decedent’s surviving spouse or domestic partner or minor child (in the absence of a spouse or domestic partner) would receive any applicable death benefits. If the member did not have a survivor and did not name a beneficiary, benefits may be payable to an estate or trust, or to a declarant(s) under provisions of California Probate Code, Section 13100. Certain limitations apply.

7.Q:IamthespouseofanactiveLACERAsafetymemberwhorecentlydied;however,Iamnotthenamedbeneficiary.AmIeligibletoreceivedeathbenefits? A: The rights of a surviving spouse or domestic partner of an active member who dies before retirement may take precedence over the rights of any other named beneficiary. For additional information, call 800-786-6464 to speak with a LACERA Retirement Benefits Specialist.

8.Q:DoesLACERApayspecialdeathbenefitswhenasafetymemberdiesintheperformanceofduty? A: Yes, under certain circumstances. If a safety member dies in the performance of duty or as the result of an accident or injury caused by external violence or physical force, his or her survivors may be eligible for special death benefits (in addition to whatever benefits otherwise apply). In such cases, LACERA will notify the eligible survivor of all applicable benefits.

9.Q:Arecontinuingmonthlybenefitstosurvivorsordesignatedbeneficiarieseligibleforcost-of-livingadjustments(COLA)? A: Yes. The COLA provision in the law that applies to retirement



allowances also applies to continuing benefits to eligible survivors or designated beneficiaries. Retiree allowances and continuing benefits are adjusted by the Board of Retirement each April 1, based on changes in the Consumer Price Index (CPI).

10.Q:AreactivesafetymemberscoveredbyanyLosAngelesCounty-sponsoredbenefits? A: County-sponsored benefits vary according to the member’s benefits plan. Safety Plan A, B, or C participants in Options, Choices, and Flex benefit programs are covered by a $2,000 basic term life insurance plan paid by the County. In addition, some may have elected to purchase additional coverage. Flex and MegaFlex participants may have elected to purchase County-sponsored Group Variable Universal Life insurance. Contact the Los Angeles County Employee Benefits Hotline at 213-388-9982 for information on life insurance benefits. LACERA does not administer these plans.

11.Q:Doesthefederalgovernmentprovidebenefitsforsurvivorsofsafetymemberskilledinthelineofduty? A: Yes. The Public Safety Officers Benefits (PSOB) Program, which is administered through the Bureau of Justice Assistance, provides benefits to survivors of public safety officers killed in the line of duty. For information on PSOB, call 888-744-6513. LACERA does not administer these benefits.

12.Q:Myspouse,whowasanactiveLACERAsafetymember,justdied.AmIeligibleforcoverageunderaLACERA-administeredhealthplan? A: It depends on the circumstances of the situation. Generally, any survivor or beneficiary who is receiving a continuing monthly allowance from LACERA and who qualifies as a surviving eligible dependent (as defined by LACERA’s Retiree Healthcare Administrative Guidelines) is eligible to enroll in LACERA-administered healthcare coverage.* When an eligible survivor notifies LACERA of a member’s death, LACERA mails a healthcare benefits information packet to the survivor. The packet includes information on benefits and premium rates, along with an enrollment form.*Member’s surviving spouse, domestic partner, minor child(ren), or disabled dependent children who meet eligibility requirements.

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Note: Under The Affordable Care Act, individuals who are ineligible to enroll in Medicare have the option to buy health insurance coverage through an insurance exchange. Some may find that option preferable to continuing coverage in a LACERA-administered health plan. To determine your best course of action, review all available coverage options and premium costs. Taxability of Continuing Benefits (Safety Member Death) 1.Q:Arecontinuingmonthlyallowancestaxable? A: It depends on the circumstances of the death. If the safety member was killed in the line of duty (service-connected), the continuing allowance may not be taxable under IRS Code. For specifics on your personal situation, consultwithaprofessionaladvisor.LACERAdoesnotoffertaxorlegaladvice. Generally, continuing allowances based on nonservice-connected deaths are taxable. However, you may elect to have federal or California state tax withheld from your continuing allowance at whatever rate you choose. (California income tax is not withheld from your allowance if you reside outside of California.) Or you may elect not to have withholding deducted from your allowance. You may designate your tax withholding elections on tax form W-4P/DE-4P, which LACERA will send you.

Note: Without a completed tax form W-4P/DE-4P on file, LACERA is required by law to withhold taxes from your allowance as if you were a married person claiming three (3) withholding exemptions.

2.Q:Aretaxeswithheldfromlump-sumpaymentsonactivesafetymemberdeathbenefits?A: That also depends on the circumstances of the death. If the safety member was killed in the line of duty (service-connected), lump-sum death benefits may qualify as non-taxable under IRS Code. For specifics on your personal situation, consultwithaprofessionaladvisor.LACERAdoesnotoffertaxorlegaladvice.

Lump-sum death benefits based on nonservice-connected deaths are taxable. Federal law requires LACERA to withhold 20 percent in federal income tax. Additionally, LACERA must withhold an additional two percent in state tax if the recipient resides in California.


Death of an Active LACERA Member — General

3.Q:Areactivesafetymemberlump-sumdeathbenefitseligibleforatax-deferredrollovertoatraditionalIRAoreligibleemployerplan?A: In most cases, yes.* Benefit rollovers postpone taxation of the benefit until it is paid to you. However, individuals who reach age 70.5 on or before December 31 in the year the benefit is disbursed are not eligible to roll over their death benefit. California residents are subject to state income tax on the benefit.

Information on the taxability of payments from qualified employer plans (such as LACERA’s) is available in IRS Publication 575, Pension and Annuity Income, and IRS Publication 590, Individual Retirement Arrangements. These publications are available from your local IRS office, on irs.gov, or by calling 1-800-TAX-FORMS. For questions regarding your personal situation, consultwithaprofessionaladvisor.LACERAdoesnotofferlegalortaxadvice.

*In certain cases, a portion of the benefit may not be taxable. LACERA will notify you of the taxable portion of the benefit.

4.Q:DoesLACERAreporttheamountofthedeathand/orcontinuingbenefitsIreceivetotheIRS? A: Yes, as required by law. Each January, LACERA will send you a copy of the Form 1099-R it submits to the IRS. The form indicates the taxable amount of the benefit paid to you in the previous year.

Death of an Active LACERA MemberGeneral Member Death and Continuing Benefits

1.Q:HowdoesLACERAdeterminewhichbenefitsapplywhenanactivegeneralmemberdies? A: Active general member death and continuing benefits are based on the decedent’s retirement plan, vesting status (length of service), and category of death (service-connected or nonservice-connected). Eligibility for a service-connected disability benefit is determined by the Board of Retirement through the disability retirement application process.

2.Q:Howiseligibilityforthosebenefitsdetermined? A: Benefit eligibility is based on your relationship to the decedent.

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3.Q:DoesLACERApaydeathbenefitsonallactivegeneralmemberdeaths? A: Pre-retirement (active member) death benefits are included in all LACERA contributory retirement plans (Plans A, B, C, D, and G). They are not included in LACERA’s non-contributory Plan E.

4.Q:Howarebenefitspaidwhenanactivegeneralmemberdies? A: Depending on the circumstances of the case, benefits may be payable as a lump-sum cash payment or a continuing monthly allowance, or a combination of the two.

5.Q:HowwillIfindoutwhichbenefitsIamentitledtoreceive? A: Upon notification of the member’s death, LACERA researches the member’s case to determine the available death benefits. It also reviews the member’s account (including the member’s Beneficiary Designation Form) to identify any eligible survivors or beneficiaries.

Once applicable benefits and eligible survivors or beneficiaries are determined, LACERA sends the appropriate paperwork to the applicable parties.

6.Q:Whatifthedecedentdidn’tcompleteaLACERABeneficiaryDesignationForm? A: According to the law, the decedent’s surviving spouse or domestic partner or minor child (in the absence of a spouse or domestic partner) would receive any applicable death benefits. If the member did not have a survivor and did not name a beneficiary, benefits may be payable to an estate or trust, or to a declarant(s) under provisions of California Probate Code, Section 13100. Certain limitations apply.

7.Q:IamthespouseofanactiveLACERAgeneralmemberwhorecentlydied;however,Iamnotthenamedbeneficiary.AmIeligibletoreceivedeathbenefits? A: The rights of a surviving spouse or domestic partner of an active member who dies before retirement may take precedence over the rights of any other named beneficiary. For additional information, call 800-786-6464 to speak with a LACERA Retirement Benefits Specialist.



8.Q:Arecontinuingmonthlycontinuingallowanceseligibleforcost-of-livingadjustments(COLA)? A: Yes. According to the law, the Board of Retirement adjusts retirement and continuing allowances each April 1, based on changes in the Consumer Price Index (CPI).

9.Q:AreactivegeneralmemberscoveredbyanyLosAngelesCounty-sponsoredbenefits? A: County-sponsored benefits vary according to the member’s benefits plan. Plan A, B, C, D, and G participants in Options, Choices, and Flex benefit programs are covered by a $2,000 basic term life insurance plan paid by the County. In addition, some may have elected to purchase additional coverage. Flex and MegaFlex participants may have elected to purchase County-sponsored Group Variable Universal Life insurance. Contact the Los Angeles County Employee Benefits Hotline at 213-388-9982 for information on life insurance benefits. LACERA does not administer these plans.

10.Q:WhatbenefitsarepayabletothesurvivingspouseordomesticpartneruponthedeathofanactiveLACERAPlanEmember? A: The surviving spouse or domestic partner of an active Plan E member may be eligible to receive benefits through the Los Angeles County Long-Term Disability and Survivor Benefit Plan. For information, call the Los Angeles County Employee Benefits Hotline at 213-388-9982. LACERA does not administer this plan.

11.Q:DoesLosAngelesCountysponsorlifeinsurancebenefitsforactivePlanEmembers? A: Yes. Plan E participants in Options, Choices, and Flex benefit programs are covered by a $10,000 basic term life insurance plan paid by the County. Additionally, Options and Choices participants may have elected to purchase additional coverage. Flex and MegaFlex participants may have elected to purchase County-sponsored Group Variable Universal Life insurance.

Additionally, Plan E MegaFlex participants may have purchased a County-sponsored life insurance plan known as the Survivor Income Benefit (SIB). SIB provides survivors with a benefit equal to a percentage of the decedent’s earnings.

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Contact the Los Angeles County Employee Benefits Hotline at 213-388-9982 for information on life insurance benefits. LACERA does not administer these plans.

12.Q:Myspouse,whowasanactiveLACERAmember,justdied.AmIeligibleforcoverageunderaLACERA-administeredhealthplan? A: It depends on the circumstances of the situation. Generally, any survivor or beneficiary who is receiving a continuing monthly allowance from LACERA is eligible to enroll in LACERA-administered healthcare coverage. When an eligible survivor notifies LACERA of a member’s death, LACERA mails a healthcare benefits information packet to the survivor. The packet includes information on benefits and premium rates, along with an enrollment form.

Note: Under The Affordable Care Act, individuals who are ineligible to enroll in Medicare have the option to buy health insurance coverage through an insurance exchange. Some may find that option preferable to continuing coverage in a LACERA-administered health plan. To determine your best course of action, review all available coverage options and premium costs.

Taxability of Continuing Benefits 1.Q:Arecontinuingmonthlyallowancestaxable? A: Yes. However, you may elect to have federal or California state tax withheld from your monthly continuing allowance at whatever rate you choose. (California income tax is not withheld from your continuing allowance if you reside outside of California.) Or you may elect not to have withholding tax deducted from your continuing allowance. You may designate your tax withholding elections on tax form W-4P/DE-4P, which LACERA will send you. Note: Without a completed tax form W-4P/DE-4P on file, LACERA is required by law to withhold taxes from your allowance as if you were a married person claiming three (3) withholding exemptions.



2.Q:Aretaxeswithheldfromlump-sumpaymentsonactivegeneralmemberdeathbenefits? A: Yes. Federal law requires LACERA to withhold 20 percent in federal income tax. Additionally, LACERA must withhold an additional two percent in state tax if the recipient resides in California.

3.Q:Areactivegeneralmemberlump-sumdeathbenefitseligibleforatax-deferredrollovertoatraditionalIRAoreligibleemployerplan? A: In most cases, yes.* Benefit rollovers postpone taxation of the benefit until it is paid to you. However, individuals who reach age 70.5 on or before December 31 in the year the benefit is disbursed are not eligible to roll over their death benefit. California residents are subject to state income tax on the benefit.

Information on the taxability of payments from qualified employer plans (such as LACERA’s) is available in IRS Publication 575, Pension and Annuity Income, and IRS Publication 590, Individual Retirement Arrangements. These publications are available from your local IRS office, on irs.gov, or by calling 1-800-TAX-FORMS. For questions regarding your personal situation, consultwithaprofessionaladvisor;LACERAdoesnotofferlegalortaxadvice.

*In certain cases, a portion of the benefit may not be taxable. LACERA will notify you of the taxable portion of the benefit.

4.Q:DoesLACERAreporttheamountofthedeathand/orcontinuingbenefitsIreceivetotheIRS? A: Yes, as required by law. Each January, LACERA will send you a copy of the Form 1099-R it submits to the IRS. The form indicates the taxable amount of the benefit paid to you in the previous year.

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Death of a Deferred LACERA Member

Section III

Death of a Deferred LACERA MemberDeath Benefits

1.Q:DoesLACERApaybenefitsforthedeathofadeferred member?A: Upon the pre-retirement death of a deferred member, the member’s retirement contributions and accumulated interest are payable in a lump sum to the named beneficiary or estate.

Taxability of Death Benefits

1.Q:Aretaxeswithheldfromdeferredmemberdeathbenefits? A: Yes.* Federal law requires LACERA to withhold 20 percent in federal income tax. Additionally, LACERA must withhold an additional two percent in state tax if the recipient resides in California.*In certain cases, a portion of the decedent’s retirement contributions may not be taxable. LACERA will notify you of the taxable portion of the benefit.

2.Q:Aredeferredmemberdeathbenefitseligiblefora tax-deferredrollovertoanIRAoreligibleemployerplan? A: In most cases, yes. Benefit rollovers postpone taxation of the benefit until it is paid to you. However, individuals who reach age 70.5 on or before December 31 in the year the benefit is disbursed are not eligible to roll over their death benefit. California residents are subject to state income tax on the benefit. Information on the taxability of payments from qualified employer plans (such as LACERA’s) is available in IRS Publication 575, Pension and Annuity Income, and IRS Publication 590, Individual Retirement Arrangements. These publications are available from your local IRS office, on irs.gov, or by calling 1-800-TAX-FORMS. For questions regarding your personal situation, consultwithaprofessionaladvisor;LACERAdoesnotofferlegalortaxadvice.

3.Q:DoesLACERAreporttheamountofthedeathbenefitIreceivetotheIRS? A: Yes, as required by law. In January, LACERA will send you a copy of the Form 1099-R it submits to the IRS. The form indicates the taxable amount of the benefit paid to you in the previous year.


Resources

Section IV

ResourcesTerms to Know Our discussion of death and continuing benefits includes terms that may be unfamiliar to you. To assist you in processing this information, we have included a glossary of the terms presented in this brochure.

Active Member: A member of LACERA who was employed by the County at the time of his or her death.

Contributory Plan: A LACERA retirement plan which requires contributions by the member.

Decedent: The LACERA member who has recently died.

Deferred Member: A vested member of LACERA Plan A, B, C, or D who left County service and left his or her Plan contributions on deposit with LACERA.

Named Beneficiary: A person other than a survivor designated by the decedent to receive death and/or continuing benefits.

Non-Contributory Plan: A LACERA retirement plan which does not require contributions by the member.

Nonservice-Connected: Death unrelated to the member’s County employment.

Reciprocal Member:A member who earned retirement benefits under more than one California public retirement system. Certain restrictions apply.

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Resources

Retired Member: A LACERA member who was retired from County service at the time of his or her death.

Safety Member: A permanent Los Angeles County employee working in a designated firefighting, forestry, lifeguarding, or law enforcement position (including District Attorney investigators).

Service-Connected: Death resulting from an injury arising out of and in the course of the member’s County employment.

Service Retirement: Retirement based on fulfillment of age and service requirements.

Survivor (of Active Member): A spouse or domestic partner who married or entered into a duly registered domestic partnership with the member prior to the member’s death. No minimum length of marriage or domestic partnership requirement applies. In the absence of a surviving spouse or domestic partner, the decedent’s unmarried minor child(ren) under the age of 18 is deemed a survivor. Eligibility may be extended through the age of 21 if the eligible child(ren) remains unmarried and a full-time student in an accredited educational institution.

Survivor (of Retired Member): The spouse of the deceased member. The spouse must have married the decedent one year prior to his or her retirement. Or, the registered domestic partner of the deceased member. Their domestic partnership must have been registered with the California Secretary of State, with a Certificate of Registered Domestic Partnership, one year prior to the member’s retirement. In the absence of a surviving spouse or domestic partner, the decedent’s unmarried minor child(ren) under the age of 18 becomes an eligible survivor. Eligibility may be extended through the age of 21 if the eligible child(ren) remains unmarried and a full-time student in an accredited educational institution.


Resources

Vested: An employee’s entitlement to receive certain benefits (which may include continuing benefits) accrued under the employee’s retirement plan. Vesting in LACERA Plans A, B, C, or D is based on the employee having completed five or more years of active County (or combined County and reciprocal system) service. Vesting in Plan E is based on ten or more years of active County (or combined County and reciprocal system) service.

For more information on LACERA death and continuing benefits, visit the Benefits section of lacera.com:

Benefits/Retired Member• Post-RetirementDeathandContinuingBenefits

Benefits/Beneficiaries• BeneficiaryFAQs

Benefits/Active Member• Pre-RetirementDeathandContinuingBenefits

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Resources

Important Phone Numbers •LACERA: 800-786-6464 •Los Angeles County Employee Benefits Hotline: 213-388-9982 • SocialSecurityAdministration:800-772-1213 • CIGNALife(BasicLifeorGroupTermLife):800-842-6635 • MetLife(GroupVariableUniversalLife):800-846-0124 • Great-WestLife&AnnuityInsuranceCo.:800-947-0845 • PublicSafetyOfficersBenefits(PSOB)Program:888-744-6513

The relationship LACERA builds with each member is personal… and enduring. It continues even after the member is gone, through survivor benefits. Upon the death of a member, his or her eligible survivors and beneficiaries are entitled to certain benefits. We recommend you store this card with your important papers for safekeeping.

Important Information RegardingLACERA Death Benefits

In the event of the death of a LACERA member, certain benefits may be payable to the member’s surviving spouse, domestic partner, or named beneficiary. The information listed below will be helpful to the survivor in expediting the benefit process.

1. Call 1-800-786-6464 as soon as possible to notify LACERA of the member’s death.

2. Upon notification of the member’s death, LACERA will research the case to determine any applicable benefits and beneficiaries.

3. LACERA will send the appropriate forms.

Note: By law, a retiree’s monthly allowance ends in the month of death. The sooner LACERA is notified of the death, the sooner a benefit account in the survivor’s name can be established.

KEEP THIS CARD FOR FUTURE REFERENCE

Los Angeles County Employees Retirement Association

IfyouhavetheLACERAMember’s SurvivorandDeathBenefitsInformationCard — The information on the card will be helpful when you notify LACERA of the members’ death.

Our Contact Information Call Center: Call to speak with us. 800-786-6464 Monday – Friday 7:00 a.m. - 5:30 p.m. MemberServiceCenter: Come in and meet with us. 300 N. Lake Avenue, Suite 100 Pasadena, CA 91101-4199 Monday – Friday 7:00 a.m. - 5:00 p.m. No appointment required. MailingAddress: P.O. Box 7060 Pasadena, CA 91109-7060

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Questions & Answers

(ARC)Purchasing Additional Retirement Credit

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Los Angeles County Employees Retirement Association · rates, along with an enrollment form. To...

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