Tax Withholdings from Pension Payments

At retirement, you should have already completed a form instructing Merced County Employees' Retirement Association (MCERA) how to withhold taxes from your monthly benefit payment. As a benefit recipient, you have several options regarding your withholding for Federal and State of California taxes. You may select an amount based on the tax tables and your tax filing status (i.e., single or married, and the number of exemptions you designate). You may designate a specific amount. You may use the tax tables and designate an additional amount be withheld. You may even elect to have nothing withheld.


If you are a non-resident of California, state taxes should not be withheld. You can change your tax withholding at any time by completing and submitting the Tax Withholding Election form (PDF). These must be received by MCERA each month (generally before the 20th of the month) for a change to be processed in time for that month's retirement payroll.