When your retirement date has passed, you will be officially retired! In order to issue your first monthly benefit payment, KCERA must wait a few weeks for your final employment and payroll records to arrive. Once they do, KCERA will perform your benefit calculation and then contact you to sign “final papers.” You will elect a retirement option and designate a beneficiary(ies) at this time.
If you sign “final papers” before the payroll cut-off date for that month, you will receive your first benefit payment at the end of the month. But if your “final papers” are signed after the cut-off date, you will receive your first benefit payment at the end of following month. Please be aware that your retirement benefit will be paid on a monthly, not biweekly, basis.
Your retirement benefit payments will be direct-deposited in your bank account on the last business day of the month. KCERA will also mail you a payment remittance that lists your KCERA income and deductions for the month. If you would like your payment remittance emailed to you, please complete and submit an Address/Direct Deposit Change Request Form to KCERA.
Within three weeks of signing “final papers,” you will receive a lump-sum retroactive payment from KCERA. This payment will cover the period from your date of retirement through the last day of the month before you go on retiree payroll. For example, if you retired on July 15 and were scheduled to go on September’s payroll, you could expect to receive a retroactive payment for July 15 through August 31.
Income Tax Withholding
KCERA will withhold federal income tax according to the tax-withholding election you made in your retirement application packet. KCERA can also withhold state income tax for retirees residing in California. However, KCERA is unable to withhold state income tax for retirees living outside of California.