Social Security and Medicare
On January 1, 1983, the County of Los Angeles withdrew its employees from the Social Security system. The withdrawal stopped contributions toward both Social Security and Medicare, potentially affecting your eligibility for Social Security and Medicare benefits.
Social Security Eligibility
Employees may be eligible for Social Security if they earned enough credit prior to the County’s withdrawal from the Social Security system; through Social Security-covered outside employment; or through their spouse/ex-spouse.
Social Security can affect your LACERA retirement allowance and vice versa. For Plan E members employed by the County prior to 1983, your LACERA retirement allowance is subject to a reduction for Social Security-covered service while employed by the County.
Prior to January 1, 2024, retired member federal benefits were subject to the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
The WEP and GPO were repealed In January 2025 with an effective date of January 2024 and are pending implementation under the Social Security Fairness Act. Members who retired on or after January 1, 2025, will no longer see any reductions in their federal benefits as a result of these two repealed provisions. As of February 2025, LACERA is not aware of any implementation plan released by the Social Security Administration to address members or survivors who retired prior to January 1, 2025 but will keep members apprised as we receive new information. Visit the Social Security website for agency updates on the Fairness Act.
Medicare Eligibility
Employees hired prior to March 31, 1986, do not contribute to Medicare. Employees who did not contribute enough toward their Medicare benefits prior to this date might still qualify for Medicare through other means, such as through a spouse/ex-spouse, Social Security disability, or Social Security-covered outside employment.
Employees hired after March 31, 1986, contribute toward Medicare benefits through a deduction known as the federal Health Insurance Tax (H.I.T).
LACERA Allowance Reductions: Pre-1983 Employment
If you are a Plan E member who worked for the County prior to its withdrawal from Social Security, a percentage of your estimated Social Security benefit will be subtracted from your retirement allowance, based on the total number of months of County service covered by Social Security.
If you retire after age 62, you may voluntarily provide evidence of your actual Social Security benefit to LACERA within six months after retirement. LACERA will use the actual benefit to recompute your retirement allowance. Otherwise, LACERA will use the actuarial tables to compute your Social Security benefit offset and your retirement allowance.