Understanding Your Retirement And Calpers (publication

Your
Understanding
CalPERS
Defined
Benefit
Rights and
Rewards
Publication 907
A Guide for all
Classified School Employees
contributing to CalPERS
Revised September 2014
AFL-CIO
CalPERS General Information
and Classified Rights The CSEA Member Benefits Department is committed to
the goal of educating active classified employees of all ages
about retirement benefits.
Members have many benefits and protections provided
through participation in the California Public Employees
Retirement System (CalPERS). It’s important that each
member understand the benefits they have as active
employees and what will be provided in retirement.
Information in this booklet was researched by CSEA
and reviewed by CalPERS. It outlines protections for
active classified school employees and explains how
retirement benefits are calculated. Also included, are
important phone numbers for members’ use.
CalPERS Website has current forms easily available at
www.calpers.ca.gov.
PLEASE NOTE: The benefits and procedures described are
correct at the time this information is being printed. Please
note that changes in CalPERS policy and legislation can take
place and cause necessary revisions to the information provided.
California School
Employees Association
AFL-CIO
Table of Contents
Questions to Ask Yourself. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
About CalPERS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
How CalPERS is Governed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Public Agencies and Schools with Individual CalPERS Contract . . . . . . . . . . . . . . . . . . . 4
Some Changes in CalPERS Benefits Can Be Made at the Bargaining Table. . . . . . . . . . . 4
Safety Retirement Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
What’s Available from CalPERS?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Lifetime Income Upon Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Long-Term Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Medical Benefits If Negotiated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Additional Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Who Contributes to CalPERS and How Much? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Returns on Your CalPERS Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
No Borrowing From CalPERS Contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
How to Preserve Benefits If Leaving the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
If you leave a CalPERS covered agency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
If you go to work immediately for another CalPERS covered agency. . . . . . . . . . . . . 9
If you go to work for another public agency not under CalPERS. . . . . . . . . . . . . . . . . 9
If you do not have five years of service or five years of part time employment. . . . . 9
If you go to work in a non-CalPERS agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
If you are under age 50 with the minimum years of employment . . . . . . . . . . . . . . 10
If you become a teacher eligible for CalSTRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Lump Sum Withdrawal Can Be VERY Costly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
When Are You Eligible for CalPERS Benefits?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Disability Retirement and Employer’s Obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Terminal Illness—Emergency Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Pre-Retirement Death Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
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CalPERS Special Power of Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Factors That Determine Your Retirement Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Purchasing Service Credit Adds to Your Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Service Prior to Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Re-depositing Funds Previously Withdrawn From CalPERS. . . . . . . . . . . . . . . . . . . 16
Military Service or Approved Leave. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
A Word of Caution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Prior Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
How to Purchase Service Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Working More Increases Retirement Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Unused Sick Leave Adds to Retirement Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Choosing a Retirement Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Health Benefits Should be Considered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Temporary Annuity May Help You—Use Caution. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Final Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Estimating and Applying for Your Retirement Income. . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Use My/CalPERS to get an Estimate,
Apply for Retirement and Manage Your Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Why Not Set Up an Account Today?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Choosing Options at Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Survivor Continuance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Unmodified Option. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Option 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Options 2 and 2W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Options 3 and 3W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Option 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Electronic Funds Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
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Deductions From Your CalPERS Check. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Cost of Living Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
After Retirement Death Benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Social Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Working After Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Learn More About Your Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
How to Calculate Your Retirement Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
How Your Retirement is Calculated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Three Factors Used to DetermineLifetime Monthly Income. . . . . . . . . . . . . . . . . . . . . . . 29
The Simple Facts About Your Retirement Are: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Final Compensation—School Members in CalPERS before 1/1/2013. . . . . . . . . . . . . . . 31
School Members 2% at 55 Formula Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Age Factor Chart 2% @ 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Sample Calculation for 2% @ 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Final Compensation—School Members entering CalPERS on or after 1/1/2013. . . . . . 35
School Members 2% @ 62 Formula Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Age Factor Chart—2%@ 62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Sample Calculation for 2%@62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Important Phone Numbers and Websites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
CalPERS Regional Offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
The Importance of Appointing a Chapter Pre-Retirement Resource Person. . . . . . . . . 40
Chapter Pre-Retirement Resource Person Appointment Form. . . . . . . . . . . . . . . . . . . . . 41
Host a CSEA Sponsored Pre-retirement Seminar or Presentation. . . . . . . . . . . . . . . . . . 43
Request an Understanding CalPERS Presentation
for Your Chapter, Region, School District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
CSEA Retirment Unit Application Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Special Power of Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
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Questions to Ask Yourself DO YOU KNOW how big CalPERS is and who’s watching
over it?
DO YOU UNDERSTAND that how your employer reports
your contribution to CalPERS affects your retirement benefits?
DO YOU KNOW how to avoid loss of CalPERS funds, if you
leave school employment at any age?
DO YOU KNOW you may be able to increase your retirement
benefit and how to go about it?
DO YOU KNOW what to do or what questions to ask if a
special need such as an injury, or disabling or terminal illness
occurs at any age?
DO YOU UNDERSTAND how employment decisions you
make within the school system can affect future retirement benefits?
DO YOU KNOW how to choose a retirement date and what
options to consider?
DO YOU KNOW how to estimate your retirement and even
apply for retirement on line?
DO YOU KNOW you can continue your CSEA Member
Benefits after you retire or leave your employment?
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About CalPERS CalPERS (California Public Employees Retirement System), is the largest,
most successful public pension system in the United States. CalPERS has
the second largest investment portfolio, among public pension funds,
in the entire world. You can be sure your CalPERS retirement funds
are very safe and GUARANTEE every eligible member in CalPERS a
LIFETIME INCOME at retirement.
Many years ago classified employees did not have a retirement program
of any kind. CSEA’s founders worked hard to see that legislation was
introduced and passed that would make it possible for you to have a
LIFETIME monthly income after retirement. We are very proud that the
efforts of CSEA made you a part of CalPERS.
CalPERS also includes all state employees and employees from some
1400 different public agencies and special districts in California.
How CalPERS is Governed
CalPERS is governed by a 13-member Board of Administration. Seven
members are either appointed or serve because they are elected to offices
such as State Treasurer and State Controller. Six Board members are
elected by CalPERS members themselves.
Of the elected members, one is a classified school employee and two
are members-at-large. Active school members are eligible to vote for all
three Board members in these two categories. It’s important to support
people who will continue to pay attention to classified employees needs.
PLEASE VOTE IN All CalPERS ELECTIONS!
➴Tip
It’s important to
support people who
will continue to pay
attention to classified employees needs.
PLEASE VOTE IN ALL
CalPERS ELECTIONS!
Public Agency members represented by CSEA are eligible to vote for a
candidate running for the Public Agency seat on the CalPERS Board,
plus the two at-large positions. We also urge you to vote at the appropriate time.
One elected member of the CalPERS Board is a retiree. After retirement
you will be asked to vote for a retiree to represent your interests on the
CalPERS Board. You will still be eligible to vote in the member-at-large
elections as well so don’t forget to vote whenever you receive a ballot.
The other elected member on the CalPERS board is elected by the State
employees who also participate in the member-at-large election.
3
It is the responsibility of the CalPERS Board to:
• oversee the investments
• monitor implementation of legislative changes
• protect the system from losses
• develop programs to meet the changing needs of members
• provide necessary staff, facilities and equipment to meet the
high standards of service the members of the system deserve.
Public Agencies and Schools with
Individual CalPERS Contracts The California School Employees Association represents several
public agencies and some school agencies with individual CalPERS
contracts.
Employees in these agencies may have different formulas that will be
used to contribute to CalPERS, as well as different formulas used to
calculate CalPERS benefits.
Much of the general information about CalPERS benefits contained
in this booklet will apply to all CalPERS members, except the formulas and after-retirement death benefits. Some other benefits may also
vary by agency.
Employees from the public agencies described here have always had
the advantage of being able to negotiate with the employer for different formulas and sick leave conversion without legislative changes.
If you are in an agency with an individual CalPERS contract, be sure
to inform your co-workers and discuss whether or not improving
your retirement formula is a benefit you want to negotiate at the bargaining table.
Some Changes in CalPERS Benefits
Can Be Made at the Bargaining Table Most school member CalPERS benefits are set by the Legislature.
However, there are a few ways school members’ benefits under
CalPERS can be changed through negotiations:
1.A Golden Handshake can be negotiated locally. This allows
employees, eligible to retire, up to two additional years of service
credit. Your employer must apply to the County and prove they
can save money by offering this incentive.
2. Changes in school calendars which cause employees to work
portions of more or fewer calendar months can have a significant
effect on final compensation figures at retirement.
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3. The law allows for less than four hour per-day employees to voluntarily participate in CalPERS if the employer agrees.
4. Health Benefits can be provided to retirees if negotiated. CalPERS has
a health benefit program available which can be negotiated with the
employer to insure both active and retired members in a district.
5. The law now allows school members to negotiate out of the school pool
and into a risk pool that has a higher formula at a younger retirement
age. Negotiating into a “risk pool” will likely increase the employee
contribution and most certainly will increase the employer contribution to CalPERS.
The decision to move to a risk pool is irrevocable. The reimbursement to
the district for employer contributions is limited to the reimbursement for
schools remaining in the school pool. The additional employer cost would
be paid from the general fund budget.
Any employee group or an employer can seek a valuation from CalPERS to
determine the cost of moving to a risk pool. There is a fee for such a valuation.
Safety Retirement Benefits Schools with employees who qualify as “safety” employees under the law,
can seek safety status under CalPERS.
To negotiate safety status it is necessary for CalPERS to be advised of the
number and ages of the affected employees. A valuation will be completed
by the CalPERS actuarial staff and the amount of contributions necessary
to provide a safety retirement will be determined.
Safety retirements do require higher contributions.
What’s Available from CalPERS? Lifetime Income Upon Retirement
When you retire you will receive a lifetime income from CalPERS because
you are part of a “defined benefit” pension plan. This means your pension is determined by specific “defined” factors (age at retirement, total
CalPERS service credit, full time pay rate).
➴Tip
When you retire you
will receive a lifetime
income from “CalPERS”.
Long-Term Care
As a CalPERS member, you and your spouse, parents, parents-in-law and
siblings, age 18 or older, may apply for CalPERS Long Term Care coverage.
The younger you are when you begin the coverage, the more affordable the
premiums are. Enrollment approval is required.
For information on CalPERS Long Term Care visit www.calpers.ca.gov or
call (888) 225-7377
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Medical Benefits If Negotiated
CalPERS administers a medical benefits program, it is only available to
you if the district you are retiring from is covering all eligible active classified employees with the CalPERS plan. Even then, many districts have
special arrangements with CalPERS that do not include full premiums
for retirees.
All health benefit questions for retiring school members must be
addressed by the school district from which you are retiring.
Additional Investments
It’s possible to invest more money in CalPERS through the CalPERS 457
plan. Participation in this plan must be arranged for by your employer
before anyone can invest. The additional funds you contribute under the
CalPERS 457 plan are not added to your regular CalPERS contributions,
they are a separate investment and one way to create additional retirement income.
For more information on how your employer can arrange for employees
in your District to contribute to the CalPERS 457 plan, call CalPERS at
(888) 225-7377.
Who Contributes to CalPERS and How Much?
Generally if you are working in one or more positions for four hours
or more a day or twenty hours or more per week, you are required to
become a CalPERS member.
➴
Tip
If you are working in
one or more positions
for four hours or
more a day…..you are
required to become a
CalPERS member.
If your position requires less than four hours per day but you work 1,000
hours in a school year, CalPERS contributions begin the first of the
month after you complete the 1,000 hours. (All hours worked in a fiscal
year are to be counted toward the 1,000 hour minimum.)
Once you are vested (five years of CalPERS service credit or, for less than
eight hour workers, the equivalent of five years under the five year conversion rule), you will remain a CalPERS member even if the work hours
drop below 1000 hours per year, or four hours per day in the future.
However, if you are not yet vested and your hours drop below 1,000 in a
qualifying period (fiscal year from July 1 to the following June 30), and
the school district provides an Alternative Retirement Plan (ARP), you
may be placed in an ARP.
A monthly amount of 7% of gross earnings is deducted from your pay
BEFORE TAXES if you were hired before January 1, 2013. If you were
hired or entered the CalPERS system on or after January 1, 2013 the
rate will be 6.4% because you will have a different retirement formula.
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Note: If you were contributing to CalPERS prior to January 1, 2001, the
first $133.33 of your monthly earnings were exempt from CalPERS contributions. That amount was then deducted from your average monthly
pay rate when calculating your monthly retirement income. The $133.33
will not be deducted from the average pay rate for any contributions
reported after January 1, 2001, therefore you will receive a higher monthly retirement on any time worked after that date.
Other important employer reporting obligations include the following:
1. CalPERS requires that your employer report and identify the earnings you generated (even one hour) in each pay period. (Government
Code Section 20630). If the employer does not properly report, you
could receive less monthly income in your retirement. For example,
if you are a 10 month employee and your work begins in August
(assuming your district’s pay period runs from the first to the
last day of the month), CalPERS is to be told you had earnings in
August. It may not affect the amount of service credit you earn but,
if the August work occurs during your final compensation period it
could dramatically impact your retirement earnings.
➴Tip
CalPERS requires that
your employer report
and identify the earnings you generated
(even one hour) in each
pay period.
2. An employer is required to report, as compensation, most additional
earnings described in an employee contract or policy governing
employees. Reportable compensation includes items such as shift
differential, education incentive pay (professional growth), longevity, bilingual incentives and many other possible pay incentives
approved by CalPERS.
Note: Overtime pay for time worked beyond 40 hours per week
is NOT reportable. However if you work less than 40 hours a
week any hours worked beyond your regular work schedule,
up to 40 hours per week, MUST be reported at the regular pay
rate—even if the time was compensated at the overtime rate.
3. For employees in CalPERS prior to January 1, 2013, uniform allowances or the cost of the purchase and care of uniforms provided you
by your district must be reported to CalPERS as additional income.
Your employee contract or district policies must state you are
required to wear uniforms and some form of compensation is provided. This is advantageous because it will increase your retirement
if included in your final compensation period. Employees entering
CalPERS on or after January 1, 2013 are not eligible to have uniform
allowance reported as compensation to CalPERS.
4. Employees working in more than one district in the same county for
a total of four hours or more per day, or 1,000 hours in a school year,
must be entered into CalPERS and earnings must be reported by
both districts (total reported not to exceed 40 hours).
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5. Employees who work less than full time (eight hours per day for
10 or more months per year), must have ALL hours worked (up to
40 hours per week) reported to CalPERS (This includes summer
work even if the employee earns a full year of service credit in the
regular school year.)
6. If you believe your district is not properly reporting your compensation, contact CalPERS to inquire about whether or not you were
reported for the period of time in question. CSEA can assist you if
you find you were not reported correctly.
7. By setting up your my/CalPERS account at www.calpers.ca.gov, you
will be able to monitor the changes in your service credit as well as
the amount of money in your account each month, this will help you
determine if money and service credit has been added for any month
in question, such as summer or August work.
Returns on Your CalPERS Contributions Your CalPERS contributions are building a LIFE TIME income for you
in your retirement. If you live a normal life expectancy, you may receive
several times over the amount of money both you and/or your employer
contributed to the system.
➴Tip
If you live to normal life
expectancy you may
receive several times
the amount of money
both you and/or your
employer contributed
to CalPERS.
For example, after you retire, you will receive an amount of money
equal to your employee contributions plus the amount contributed by
your employer within the first six to 10 years (depends on which option
you choose). However, the same amount of monthly income, plus compounded cost of living increases continues for your entire lifetime,
regardless of how long you live. Options you may choose at retirement
also allow your designated beneficiary to receive a continuing lifetime
income upon your death.
When CalPERS estimates your monthly retirement income, multiply it
times 12 to figure your annual income, then times 10 to see what it will
be in 10 years, then figure 20 or 30 years and you’ll be amazed at how
much it becomes in relation to how much you’ve invested.
So, as you see, CalPERS produces an excellent GUARANTEED return
on your investment if you live a normal life expectancy and choose your
options carefully.
No Borrowing from CalPERS Contributions You may not borrow from your CalPERS account.
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How to Preserve Benefits if Leaving the District
If you leave a CalPERS covered agency you can leave your money on
deposit at CalPERS. (You never know, you may return to work at the
same or another CalPERS agency in the future.)
Your money continues to earn compounded interest, and most importantly, you continue to be eligible for a lifetime income if you have (or
later earn) five years of service credit (or work five consecutive years in a
part time position under the terms of a five-year conversion rule).
See section on “When are You Eligible for CalPERS Benefits” on page 11.
If you go to work immediately for another CalPERS covered agency
i.e. state, city or county your CalPERS service continues.
If you go to work for another public agency not under CalPERS check
to see if the agency’s retirement system has a reciprocal agreement with
CalPERS. If so, by leaving your CalPERS retirement on deposit and
retiring from both systems on the same day, both retirements can be
calculated on your highest earnable pay rate for the appropriate time
period. CalPERS has reciprocity with most public agencies in California.
If you work for a public agency in California, remember that you do not
need five years of CalPERS contributions to be eligible for a CalPERS
pension if you contribute to a reciprocal pension for at least five years.
If you do not have five years of service or five years of part time
employment and know you will not return to work, you can roll over
your money.
You can protect yourself from excise taxes for early withdrawal of pension
funds by rolling over your money directly from CalPERS into another
qualified plan, such as an IRA. Remember, if you roll over money, you
will lose your employer’s contributions.
If you leave school employment and go to work in a non-CalPERS
covered agency and are at least 50 years old (52 if entering CalPERS
after Jan. 1, 2013) with 5 years of CalPERS contributions, you CAN retire
and immediately begin drawing a lifetime income from CalPERS while
working elsewhere. Then, if you choose to invest that monthly income in
another pension or savings program, you can have your original CalPERS
contributions working for you twice. In other words, you will receive your
lifetime CalPERS entitlement plus the return on the new investment.
Even though you can begin your retirement income at age 50 (if you
entered CalPERS before 1/1/2013), you will see that the formula nearly
doubles your monthly income at age 55. You may want to consider leaving your money on deposit until age 55 even though you separate from
the district before that time, unless you would lose health benefits from
your district by delaying your retirement.
➴Tip
If you leave school
employment and go to
work in a non-CalPERS
covered agency and
are at least 50 years old
(52 if entering CalPERS
after Jan. 1, 2013) with
5 years of CalPERS
contributions, you
CAN retire and immediately begin drawing
a lifetime income from
CalPERS while working
elsewhere.
9
If you are under minimum retirement age with five years of employment when you leave your CalPERS covered agency, you can leave your
money with CalPERS and apply for monthly retirement income as soon
as you reach age 50 (or age 52 if you entered CalPERS on or after January
1, 2013), but again delaying until a later age may be more beneficial over
your lifetime.
➴
Tip
If you are in CalPERS
and become a teacher
in California you may
be eligible to stay in
CalPERS which can be
to your benefit.
If you become a teacher eligible for CalSTRS (State Teachers
Retirement System) you may benefit by leaving your money in CalPERS.
You will then be eligible to either continue to contribute to CalPERS or
begin contributing to CalSTRS. The employer MUST give you a choice,
especially if you are already vested in CalPERS. If you take a teaching
position in another District, be sure to advise your new employer you are
a CalPERS member.
Here are several comparisons to help you consider whether or not to
continue your contributions to CalPERS rather than contributing to
CalSTRS.
1. One good reason to continue with CalPERS is that you would
continue contributing to Social Security. In most cases your
Social Security entitlement will be reduced if you stop paying in
while contributing to another retirement system due to the Social
Security Windfall Elimination Provision (WEP). This applies EVEN
IF YOU HAVE 40 CREDITS but less than 30 years of contributions
on significant earnings. By continuing your Social Security
payments, you can expect to receive your full retirement from
CalPERS plus a full Social Security retirement at the eligible age.
2. The highest CalSTRS current maximum age benefit factor is 2.4%.
The maximum age benefit factor for CalPERS is 2.5% per year of
service at age 63 if contributing to CalPERS PRIOR TO January 1,
2013. If hired or entering CalPERS after January 1, 2013, the highest
benefit factor is 2.5 @ age 67.
3. Retirement income is based on your average highest 12 months
of earnable pay rate in CalPERS (highest 36 months if entering
CalPERS AFTER January 1, 2013). By staying with CalPERS you
will be able to use your teacher’s salary to calculate all of your
retirement income.
4. After retirement, CalSTRS cost of living increases are calculated on
your original base retirement amount while CalPERS cost of living
increases are compounded each year, this will increase your
income more over the years.
If you do decide to switch to CalSTRS when you begin a certificated
position, it’s still important to leave your CalPERS contributions
on deposit and retire from both systems ON THE SAME DAY. This
way both retirements can be calculated on the appropriate HIGHEST
earnings during your classified or certificated work history.
10
A Lump Sum Withdrawal can be VERY Costly A lump sum withdrawal causes you to lose lifetime earnings from
CalPERS. You can easily lose thousands of dollars.
If you withdraw your money in a lump sum you:
1. will lose all of your employer contributions (if your employer pays
your employee contributions, those contributions are yours minus
the appropriate taxes).
2. must pay 20% automatic Federal withholding taxes on all untaxed
money withdrawn, unless it is directly rolled over into a defined
contribution plan or approved Individual Retirement Account (IRA)
as specified by law.
➴Tip
A lump sum withdrawal
can cause you to lose
thousands of dollars in
lifetime earnings from
CalPERS.
3. will be subject to excise taxes if you are under age 59 ½. The taxes are
10% Federal and 2 ½% State. These excise taxes may be avoided if the
funds are rolled over into a defined contribution plan or approved
Individual Retirement Account (IRA) as specified by law.
4. will deny yourself a LIFETIME INCOME from CalPERS.
5. may have a possible loss of health benefit coverage. Contact your
personnel office for further details.
When Are You Eligible for CalPERS Benefits? As a general rule, CalPERS members are eligible to begin receiving
a regular monthly income for life at 50 years of age with five years of
service credit.* (Age 52 if entering CalPERS on or after January 1, 2013)
*NOTE: If you work a regular part time position and contribute to
CalPERS, Government Code Section 20970 may allow you to be eligible
to receive a benefit, even if your service credit is less than five years
as long as you have been employed in the part time position and
contributing to CalPERS for at least five consecutive years. To inquire
about this benefit be sure to refer to Government Code Section 20970
and mention Service Credit Conversion on your application.
If you do not have enough service credit but were working part-time
before you began contributing to CalPERS, you may be able to qualify
for a lifetime income by purchasing service credit for that part time
work. See section on “Purchasing Service Credit” on page 15.
If you previously worked for a CalPERS agency, withdrew your funds
and are now contributing to CalPERS again, re-depositing funds
you withdrew will cause you to be eligible for more lifetime CalPERS
income under a service and possibly disability retirement. See section on
“Re-depositing Funds” on page 16.
11
Disability Retirement
and Employer’s Obligation
➴Tip
If you learn you will
NOT receive a higher
pension from CalPERS
by applying for disability, you may apply for
a service retirement if
you are age 50 or older.
If you are 60 or older
your service retirement
will be as much as a
disability retirement
and you can start it
quicker than disability
retirement.
Should you become disabled, disability retirement is a way of collecting
benefits if you are eligible. It is a lifetime income and paid instead of
service retirement.
You can apply for disability retirement for any illness or injury that
prevents you from continuing your job. The injury or illness need not
be job related. There is no minimum age requirement, however, you
must have worked, and contributed to CalPERS for at least five years.
See previous section, “When are You Eligible for CalPERS Benefits?.”
If you have not contributed to CalPERS for five years, but have worked
in a CalPERS covered agency for five years or more, call to ask about
purchasing service prior to membership. See section on “Purchasing
Service Credit” on page 16.
Disability retirement is subject to approval by CalPERS and is based
primarily on your doctor’s medical report which must substantiate that
you are no longer able to do the job you were hired to do.
IMPORTANT: If you become disabled and cannot do your job or your
employer will not allow you to do your job because of your illness, injury
or physical limitations, you should contact CSEA to learn what leave
provisions or other legal rights you have.
Remember, if you are vested in CalPERS your employer has a legal
obligation to you regarding an application for a disability retirement.
Following is a quote from the Government Code which governs CalPERS:
Government Code Section 21153 provides that the employer may
not separate a member because of disability who is otherwise eligible
to retire for disability. The employer must apply for the disability
retirement of such member unless the member waives the right to
retire for disability and elects to either withdraw contributions or
leave them in the fund for a future service retirement.
Depending on your age at retirement, you may be eligible to receive
a higher benefit on a service retirement than a disability retirement.
CalPERS will pay you the higher benefit.
If you are at least 50 (age 52 if entering the CalPERS system on or after
January 1, 2013) and are applying for disability retirement, you can apply
for “service retirement pending disability.” You will receive service retirement income while CalPERS is considering your request for a disability
retirement. When CalPERS determines that you are eligible for disability
retirement they will make any increase in your retirement benefit retroactive to your original retirement date.
12
If you have less than five years of CalPERS service credit but have contributed for five consecutive years on a part time position you may qualify to
apply for a disability retirement under Government Code 20970.
The calculation used by CalPERS for a disability retirement varies
depending on your age and the amount of CalPERS service credit you
have at the time of retirement. If you have 10 years of actual CalPERS
service credit, there may be a significant increase in the amount to which
you are entitled.
If you are age 60 or over, the service retirement calculation will nearly
always be as high as the disability retirement calculation. There would be
little reason to proceed with a CalPERS disability retirement at that age.
You would still be eligible to apply for a Social Security disability retirement, even if you do not apply for a CalPERS disability retirement.
Terminal Illness—Emergency Retirement
If you, or a co-worker, are faced with a terminal illness, please call
CalPERS so an analyst can counsel you or your coworker about
options and the maximum benefit available for the family. When calling CalPERS be sure to explain you are calling about an “Emergency
Retirement”. CalPERS staff may go to your home, hospital or hospice to
assist you.
If you are facing a serious operation, you may also fill out and submit to
CalPERS a retirement application and choose your option in case you
do not survive the operation. Once you have recovered you can contact
CalPERS and withdraw the application. Contact CalPERS for more
information about filing an application under these circumstances.
In order to protect a beneficiary’s lifetime allowance, generally the best
choice is to sign a disability or service retirement application and choose
option 2W prior to death, but not in all cases.
CalPERS FUNDS SHOULD NEVER BE WITHDRAWN IN A LUMP
SUM WITHOUT TALKING TO CALPERS FIRST, doing so denies a
beneficiary lifetime income and may impose large penalties.
Pre-Retirement Death Benefit The CalPERS pre-retirement death benefit guarantees that at least all of
your contributions and interest, plus some additional income, will be
paid to your beneficiary. How much your beneficiary receives if you die
while still an employee depends on your age and length of CalPERS service. You should understand the pre-retirement death benefit and inform
your beneficiaries about it.
➴Tip
If you pass away while
still employed, at least
all of your own CalPERS
contributions and interest, plus some additional income, will be paid
to your beneficiary.
13
If you are not eligible to retire at the time of your death (under age
50 or over age 50 with less than five years of service credit—age 52 if
entering CalPERS after January 1, 2013) all of your CalPERS contributions plus interest will be paid to your beneficiary. In addition, (if you
were employed for at least one year), your beneficiary will receive one
month’s salary for each year you were employed up to a maximum of six.
This payment will be subject to normal taxes but not excise taxes (early
withdrawal) penalties.
If you are age 50 or more (52 if entering CalPERS on or after January 1,
2013) with five years of CalPERS service credit your eligible survivor
(spouse, registered domestic partner, child under 18, dependent disabled
child any age or dependent parent) has a choice:
return of contributions plus UP TO 6 months salary
or
monthly payments equal to half of the highest monthly payments you
would have been eligible to receive had you retired on the day of your
death. If you do not have any eligible survivor, the return of contributions, plus appropriate salary, will be paid to your designated beneficiary
or beneficiaries.
➴Tip
You should have a
CalPERS Power of
Attorney on file at
CalPERS, or be certain
you have a Power of
Attorney that contains a durable clause
that will apply to your
retirement funds. You
will find the Power of
Attorney forms in the
back of this document.
*(Government Code Section 20970 also applies to pre-retirement death
benefits. If you are 50 or over and die after contributing to CalPERS five
consecutive years but have less than five years service credit at the time
of your death, your survivor should tell CalPERS. They may find your
survivor is eligible for a lifetime income choice.
You may request a beneficiary designation form by calling CalPERS or it
can be downloaded from the CalPERS website.
CalPERS Special Power of Attorney You should be sure to have a CalPERS Power of Attorney on file or be
certain you have a Power of Attorney that contains a durable clause that
will apply to your retirement funds. This will give someone you trust the
ability to make decisions about your CalPERS funds should you become
incapacitated or incompetent to handle your CalPERS affairs.
Please note: it is important to complete a Power of Attorney and keep it
updated while you are still working. Also note, your Power of Attorney
cannot choose an option that will benefit themself. For more information contact CalPERS.
Please understand the CalPERS Special Power of Attorney applies
ONLY to CalPERS transactions and only while you are still alive.
14
Factors That Determine Your Retirement Income
Three factors are used to determine how much monthly income you will
receive after retirement. They are:
1. Age at retirement
2.Total CalPERS service credit (See next section on Purchasing
Service Credit).
3. Final compensation (average gross monthly earnable wage over your
highest 12 consecutive months of employment, adjusted for Social
Security contributions if appropriate). If you entered the CalPERS
system on or AFTER January 1, 2013 you will average your
gross earnings over a 36 month period. How to calculate final
compensation is explained later.
The simple facts are:
The older you are at retirement,
The more service credit you have,
The more months you work during the 12 or 36 month final
compensation period and,
The higher your monthly earnable wage,
The more monthly retirement income you will receive each month
for the rest of your life.
Purchasing Service Credit
Adds to Your Retirement Buying service credit for which you are eligible can increase your lifetime
benefits. It may seem expensive but remember—the additional money
you will be eligible to receive upon choosing to purchase the service
credit will be a life-time increase. So look at the BIG picture when considering such a purchase.
Service Prior to Membership
If you are eligible to purchase service credit, you should do so early in your
career as you will pay less interest than if you wait. You can buy service credit
at any time prior to retirement however, as long as you submit the application to make the purchase before you retire. If you haven’t purchased credit
for which you are eligible but are planning to retire soon, it’s not too late. You
can even choose to begin buying the credit at the time of retirement. You
can then have payments deducted from the increased retirement benefit you
will become eligible to receive, therefore, no out-of-pocket cost is required.
However, the request to purchase service credit form MUST be submitted to
CalPERS PRIOR to retirement. Again, it may not be wise to post-pone purchasing any service credit because a delay will increase interest costs.
➴Tip
If you plan to retire
soon purchasing some
types of service credit
just before retiring may
benefit you.
15
It should also be noted that service prior to membership and a redeposit
of previously withdrawn retirement funds are less costly than other types
of service credit.
For service prior to membership, once you decide to make the purchase,
the employer costs for the time you are purchasing are set aside for you,
so you will only be paying the employee cost plus the interest the contributions would have earned.
Re-depositing Funds Previously Withdrawn From CalPERS
For a redeposit of funds you will be required to return the money you
took out plus the interest the money would have earned. The employer’s
portion is still in the CalPERS system, therefore, you are not required to
pay any employer costs.
➴Tip
Please note, some
service credit purchases can affect Social
Security benefits later
Military Service or Approved Leave
Military, or unpaid leave calculations all include employer and employee
costs and are calculated at “present value”. These types of credit are more
expensive to purchase.
A WORD OF CAUTION—In some cases purchasing service credit can
cause a reduction in your Social Security entitlement. If you will have
less than 30 years of Social Security contributions on significant earnings
at the time you start collecting your Social Security, your Social Security
may be reduced up to fifty percent of the amount by which you increase
your CalPERS pension. If you will have 30 years of Social Security contributions on significant earnings at the time of retirement there should
be no reduction. Contact Social Security or CSEA for further information.
Prior Service
If you were working for another public entity that has now become a
CalPERS covered agency, you may be eligible to purchase prior service
once you become a CalPERS member. Depending on the agency contract, the former employer may even be required to pay for all or part of
your prior service.
How to Purchase Service Credit
To purchase the types of service credit described above, go to
www.calpers.ca.gov. Log on to my/CalPERS and do an estimate for
Service Credit purchase. You must print the Service Credit Estimate,
attach it to the form on-line and submit. You may also call CalPERS
at the toll free number (888) 225-7377 to request a “Service Credit
Purchase” booklet.
16
If you are purchasing service prior to membership or service for approved
leaves such as maternity or paternity leave, contact the payroll department
where you were working and ask them to provide you with all hours you
worked (including any time worked before you became eligible to be
in CalPERS—less than four hours a day, playground supervision, prior
substitute time or hours you were on an approved leave). Use this information
to complete your estimate request form. When CalPERS receives the
completed form they will contact you with the following information:
1. The total service credit available for purchase.
2. How much they estimate the service credit will add to your monthly
retirement income.
3. How much the service credit will cost if paid in a lump sum.
4. How much the monthly payments would be if purchasing the credit
monthly. (You may opt to make pre-tax payments.)
Once you receive the packet you will be advised how many days you have
to respond to purchase credit under the same terms. If you agree to make
the purchase you will be given full service credit immediately and can
continue payments to CalPERS even after retirement.
If you are considering a redeposit of previously withdrawn CalPERS
funds or a purchase of prior military service or prior service for work with
another CalPERS agency, send the appropriate form directly to CalPERS.
They will respond with the information necessary to complete the purchase. Again, you will be advised of how many days you will have to
respond to purchase credit under the same terms.
Working More Increases Retirement Benefits
Full time, 12 month, eight hour-a-day employees will receive a higher
monthly retirement than employees working the same number of years in
jobs with fewer hours and fewer months worked.
Applying for positions with more hours, or more months at least one
year prior to retirement can increase the retirement benefit. However, any
unusual activity in the employment pattern close to the retirement date is
subject to review and approval by CalPERS Compensation Review Unit.
Unused Sick Leave Adds to Retirement Benefits
Any unused sick leave you have at the time of your retirement will automatically be converted to additional service credit. (25 eight-hour days
equal one additional month of service credit—every day will count).
CalPERS will verify with your employer how much unused sick leave you
have after you submit your retirement application. Credit may be given
immediately but can be delayed due to necessary review by CalPERS, in
which case the additional retirement amount will be paid retroactive within the following months.
➴Tip
Unused sick leave is an
automatic benefit for
school members who
retire within 120 days
of separation.
17
Choosing a Retirement Date Your retirement date will be your personal decision but there are some
things you should know that might help you decide when to retire.
1. Timing can make a difference. If you are under age 63 (67 if entering
CalPERS AFTER January 1, 2013) the age factor in your retirement
formula increases on your birthday and every quarter year (three
months, six months, nine months) from your birthday, which will
increase your monthly retirement benefit.
2. Your work schedule can be an equally important factor in deciding
when to retire. If you work 10 months and have no income during
the summer, waiting for your next birthday or the next quarter anniversary of your birthday may not be wise.
3. Cost of living increases are paid May 1, of the second CALENDAR
year after the year of your retirement. By making your last day in
paid status on or before December 30 of any year, and your first day
of retirement by December 31 of the same year, you will receive your
first cost of living increase one year sooner than if your last day in
paid status is December 31, making January 1 of the new calendar
year your first day of retirement.
It is important, however, to do this ONLY if other factors such as a birthday, quarter anniversary (If under age 63, or 67 if you entered CalPERS
after January 1, 2103), golden handshake, or some other incentive do
not cause you to have a higher lifetime income by waiting until after the
beginning of the year.
If you are also eligible for retirement from another system that has reciprocity with CalPERS, you must use the same retirement date for both
systems. By doing so, the higher pay rate from either system is used to
calculate how much monthly benefit you will receive from each system.
Check with both systems to verify that you are eligible for the benefits
of reciprocity.
Health Benefits Eligibility Should Be Considered
When Choosing a Retirement Date
Check your employee contract to see if your employer pays or contributes
toward health benefit premiums after retirement.
CalPERS does not have a health plan available to retirees unless your
employer is currently providing active employees in your district with
health benefits purchased through the CalPERS health benefit program.
Check with Social Security to learn when you will become eligible for
Medicare. There are several HMO alternatives to Medicare available in
most parts of the state and in some other states. These require you to
18
assign your Medicare premium to the HMO. In some cases there are no
additional premiums and no deductibles required. This can be an affordable alternative.
For those not choosing to use an HMO alternative to Medicare, you will
probably want to find a Medicare Supplement to pay for the deductible
under Medicare as well as other costs that Medicare does not pay.
Temporary Annuity May Help You Retire Earlier—
Use Caution
A temporary annuity program through CalPERS can help you retire
earlier by providing additional income, but PERMANENTLY
REDUCES your CalPERS lifetime benefit in order to repay this loan.
Under this program, additional funds are advanced to you monthly by
CalPERS, starting with your retirement date, for a set period of time. For
example, someone who is 60 may take a temporary annuity to age 62 in
the amount of $400 per month, knowing that when they reach the age
of 62 Social Security will pay them at least $400 per month. When the
retired member turns 62, the extra $400 per month from CalPERS stops,
along with the cost of living adjustments received on that portion of the
monthly income.
When advancing the extra money, CalPERS charges you for each $100
advanced, based on your age at Retirement, and the length of time
you will receive the extra money. The repayment is made by reducing
your regular CalPERS benefit permanently beginning with your first
retirement warrant.
You may request a pamphlet on Temporary Annuity by contacting
CalPERS or visiting the CalPERS website.
Final Compensation This is the average of your gross monthly earnable wage (full time pay
rate) during your highest 12 consecutive months of employment, minus
$133.33 for time worked prior to 1/1/01 if you were also contributing to
Social Security. After 1/1/01 you are paying contributions on your full salary, even though you are still contributing to Social Security. That portion
of your final compensation is not subject to a reduction at retirement.
Calculating final compensation for 12 month employees is simple.
Select a 12 consecutive month period (or 36 month period if you entered
CalPERS on or after January 1, 2013) in which your pay rates were the
highest. Add your gross pay rates (before deductions) and divide the total
by 12 (or 36). Overtime pay, for work beyond 40 hours a week, is not
reported to CalPERS and is not included in the final compensation
calculation.
19
If you work eight hours a day but less than a 12 month year, your final compensation will be less.
➴Tip
If you do have a period
of time when your pay
rate was higher or you
worked more months
be sure to note that at
the top of your retirement application.
For example, indicate the gross pay rate for each month you worked (if only
one day) and contributed to CalPERS in a 12 (or 36 if you entered CalPERS
on or after January 1, 2013) consecutive month period. For those months
you did not work indicate a pay rate of zero for that month. Add the pay
rates together and divide by 12 (or 36) to determine your average earnable
monthly pay rate.
If you work less than eight hours per day you have earned less than full
service credit so an adjustment has already been made for working fewer
hours. Your final compensation is calculated by using the FULL TIME pay
rate, as if you worked a full eight hour day. Add the gross pay rate for the
number of months you worked and contributed to CalPERS within a consecutive 12 (or 36) month period. Divide by 12 (or 36).
The CalPERS system automatically selects the highest period reported.
If your last 12 (or 36) months are not your highest, or you worked fewer
months during the last 12 (or 36) month period, it would be wise to check
with CalPERS to make sure your pay was properly reported so your retirement is being based on your highest eligible earning period.
Final compensation DOES INCLUDE some additional earnings (Special
Compensation) reported to CalPERS by your employer, i.e. professional
growth, longevity etc.
Estimating and Applying for Your
Retirement Income There are several ways to learn how much you will receive in your retirement. If you understand how retirement is calculated you will better
understand what factors you may be able to change to increase your retirement before you reach retirement age.
On pages 27 through 37 of this booklet there are charts to explain the calculations for employees who were entered in CalPERS both before and after
January 1, 2013.
By using the charts to calculate, you can more easily understand how
valuable your LIFETIME CalPERS benefit is in relation to your overall contributions, regardless of how large or small it may be.
You can request an estimate from CalPERS by phone in the year you plan to
retire, however the preferred method is to set up your my/CalPERS account
on line and calculate an estimate using the on-line calculator accessible inside
your account. You can then apply on line or print the Service Retirement
Application, fill it out and take it to a CalPERS Office or mail it to the address
listed on the form. Using this calculator gives you flexibility to estimate several
different possible retirement dates to help you with your planning.
20
Use my/CalPERS to Estimate, Apply for
Retirement and Manage Your Information
my/CalPERS is your gateway to conducting business electronically with
CalPERS. Use this secure self-service website to not only access real-time
details and balances of your CalPERS account, but also to quickly and
easily manage these accounts.
You can use my/CalPERS to:
• Schedule personal appointments at one of their eight Regional Offices throughout the state
• Register for online and instructor-led classes
• View Annual Member Statements
• Estimate future retirement benefits and save to view at a later date
• Apply for service retirement and submit online or save and print
• Search for medical premium rates—if receiving CalPERS Medical Insurance through your employer
• If your health care is provided by your employer through the CalPERS health care program you can confirm which dependents are covered on the health plan and what health plans are available in your area
• Order and download publications
• Select mailing preferences for your statements and newsletters
• Send account information to third parties such as banks
• Send and receive secure messages
Why not set up an account today?
Go to www.calpers.ca.gov
Select “Member” at top of the screen
Select “Active Member”
Select “School Member”
On Member Information Page Select “my/CalPERS Central”
View choices and follow prompts to set up my/CalPERS account.
21
Choosing Options at Retirement When you fill out an application for retirement, you will be required
to choose an option. This tells CalPERS how you want your retirement
paid and whether or not you want a continuing lifetime income for a
beneficiary after your death. Be sure you and your survivor or beneficiaries understand the option you have chosen.
Survivor Continuance
School employees, whose districts remain in the school pool, are automatically covered by a “Survivor Continuance” benefit. This provides
that upon your death a portion of your allowance will automatically
be paid to an eligible survivor regardless of which option you select in
retirement.
For example, if you have an eligible survivor as specified under CalPERS
law, a continuing income of one-fourth of the unmodified allowance
would be paid to the survivor (the amount is one-half if you did not
contribute to Social Security) as long as the individual continues to be
eligible for this benefit. In order of eligibility the eligible survivors are:
1. a spouse, to whom you had been married at least one year prior to
retirement;
2. a registered domestic partner registered with the State of California
3. a child under the age of 18, who has never been married;
4. a child disabled before the age of 18, never married and continues to
be disabled and dependent on you;
5. and parents who are dependent on you for more than half of their
support at the time of your retirement.
Below is a basic description of each available option. Contact CalPERS
for further clarification.
➴
Tip
The unmodified Option
can cause considerable
loss to loved ones if
you are deceased while
some of your own
contributions remain
at CalPERS.
22
Unmodified Option
This option can cause considerable loss to loved ones if you are deceased
within the first ten years of your retirement. The unmodified allowance
provides you with the highest monthly income for which you are eligible, but requires that any money left in your own account at the time
of your death stay in CalPERS. If you choose the unmodified allowance
there is no return of any remaining contributions at your death. An
eligible survivor would receive a “survivor continuance” as described in
the previous paragraphs.
Option 1
This may be a good alternative to the unmodified allowance. There is
a slight reduction in your allowance, but it ensures that if there are any
contributions remaining in your account at the time of your death, they
go to your beneficiary in a lump sum (or are shared equally among your
beneficiaries if you choose more than one beneficiary). It usually takes
about 10 years for the money in your account to be depleted, however,
you will receive your pension for life.
Under this option your eligible survivor would also receive the survivor
continuance described in the previous section.
Options 2 and 2W
These provide for the combination of your eligible survivor (if one exists)
and/or designated beneficiary to continue to receive, after your death,
the same total monthly allowance you are eligible to receive under these
options. When choosing one of these options you will reduce your
monthly entitlement. The amount of reduction depends on the age of
your beneficiary and other factors.
If you choose Option 2 and your beneficiary is deceased before you,
you’re allowance will “pop up” to the unmodified amount. If you choose
Option 2W you waive the “pop up.”
Options 3 and 3W
These provide for you, the retiree, a higher continuing lifetime income
than options 2 or 2W. However, the designated beneficiary will receive
a lesser amount. Option 3 provides the “pop up” upon the death of your
beneficiary. Option 3W waives the “pop up”.
Option 4
Option 4 allows you to create other options within certain guidelines.
One of the most popular is a combination of Options 2W and 1. This
allows you to choose a continuing lifetime income for a beneficiary after
your death, however, if there are any funds in your account after you and
your beneficiary are deceased, the balance is paid to a designated beneficiary in a lump sum or in monthly payments.
To choose Option 4 you must inform CalPERS at the time of your application to retire so they can calculate this option for you.
Electronic Funds Transfer It is recommended you have CalPERS electronically transfer your retirement checks to a financial institution to avoid loss or delays in the mail. A
form is available on line for your use, a section of the form must be completed by your bank. Once you submit the form, the transfer to the bank of your
choice should begin with the second or third check following your request.
23
Taxes Your retirement income will be taxed, except for any portion that has already
been taxed. You must choose a minimum tax deduction but can increase the
amount if you wish. CalPERS does not provide tax advice. If you have questions about how much to deduct, check with your tax professional.
➴Tip
Stay in the Union. Join
the Retiree Unit, Get
great benefits. Deduct
$3.00 per month from
your CalPERS check
Deductions from Your CalPERS Check CalPERS allows you certain deductions at your request. CSEA Retiree Unit
dues, Victory Club contributions and some insurance premiums can be
automatically deducted.
To arrange for these deductions you must fill out an application with CSEA
or the Insurance Company.
Cost of Living Adjustments After you retire you will begin receiving cost of living adjustments of up to
2%, compounded annually, beginning with your May 1 warrant, the second
calendar year after your retirement.
If inflation, according to the CPI (Cost Price Index) is less than 2% in any
given year, the cost of living adjustment will be less than 2%. If in the following year, the CPI shows a higher than 2% inflation figure, the balance of
the 2% figure from the previous year may be added to new 2% factor.
CalPERS also has a 75% purchasing power protection. This means that if, after
several years, inflation has exceeded the 2% cost of living increases by a total of
25%, additional funds will be paid to ensure that the purchasing power of your
pension never drops below 75% of what it was when you retired.
After Retirement Death Benefit The after retirement death benefit for school members is a one-time lump
sum payment of $2000 in addition to any benefit you make available
through the option you choose at retirement.
Social Security If you have contributed to Social Security on the same earnings that your
CalPERS pension will be based on, and you have earned at least 40 Social
Security credits, you are entitled to Social Security payments in addition
to your CalPERS benefits. Depending upon the number of years you have
worked under both CalPERS and Social Security, you may find that your
combined retirement income may nearly equal to or exceed the
salary you are making before retirement.
When you apply for Social Security, DO NOT check the box that asks if
you will receive a government pension from funds NOT covered by Social
Security. (while CalPERS is considered a Government Pension by Social
24
Security, it IS coordinated with Social Security for the majority of classified employees. Checking the box makes Social Security staff think you
did not pay Social Security on your CalPERS earnings and it will possibly cause you to lose some of your Social Security entitlement. The box
should only be checked if you DID NOT PAY Social Security while
contributing to CalPERS.)
However, remember if you have purchased service credit that was covered by Social Security, you MAY be subject to a reduction in your Social
Security payments. If you have 30 years of Social Security contributions
on significant earnings at the time you apply for Social Security, you
should not be reduced, even if you did purchase service credit that was
not covered by Social Security.
Contact Social Security or visit the website www.ssa.com to learn about
the Windfall Elimination Provision if you have purchased CalPERS service credit that may not have been covered by Social Security.
➴Tip
If you contribute to
Social Security and
CalPERS on the same
earnings you should be
eligible to receive your
full Social Security and
CalPERS based on the
age at which you retire.
You may apply for Social Security benefits as early as age 62, the benefit is smaller than it would be at full Social Security retirement age. If
you were born in 1938 or later you will receive a smaller percentage of
your full Social Security entitlement each month if you apply for Social
Security early. However, if you are not working or your earnings are
small you may want to consider collecting your Social Security early.
You should ALWAYS contact Social Security about Medicare eligibility.
If you are receiving health benefits in your district, most employers do
not require you to sign up for Medicare when you are eligible (age 65)
until after you retire. Social Security needs to know you are receiving
health benefits from your employer beyond the age of eligibility. If they
are not informed, they may charge you a penalty for signing up late.
It is always wise to get an estimate of future earnings from Social
Security prior to your retirement. Call (800) 772-1213 for a Social
Security estimate or go to the easy-to-use Social Security Website,
www.ssa.gov/my account/mySocial Security. You can set up a my/Social
Security account that allows you to change your address, request a direct
deposit, see your earnings statement, request a letter of income verification or apply for your Social Security on-line. Your application will be
processed promptly.
Working after Retirement If you choose to work after retirement and the employer is NOT a
CalPERS covered agency, there is no CalPERS restriction on how much
you work or how much you earn.
If you work for a CalPERS covered agency, you may work up to 960
hours in a fiscal year (July 1 through June 30), but only after a 180 day
waiting period. You must have a break of 6 months prior to doing any
25
➴Tip
Once you retire you
must wait six months
before working in a
CalPERS agency. You
may then NOT WORK
in a permanent part
time position even if
the hours are less than
960 per year.
work in any CalPERS covered agency. This includes short term work,
substituting, consulting, training or any kind of a temporary position. You MAY NOT work in a permanent part time position in any
CalPERS covered agency while receiving a CalPERS pension without a penalty, (even if the total hours do not add up to 960 per year).
There is no CalPERS restriction on how much you earn.
The CalPERS “Employment after Retirement” publication specifically
states that working in a Permanent Part Time Position is not permitted.
Once your employment is discovered you will be required to return all of
the retirement you received while working illegally. Your employer will
also be subject to a penalty for illegally employing a CalPERS retiree.
If, after you start your CalPERS retirement, you wish to return to work
in a CalPERS agency, contact CalPERS to reinstate once you have been
assured a position. After you have earned a year or more of service
credit you may be eligible for a higher retirement when you retire again.
If you are receiving a disability retirement from CalPERS and desire to
work after retirement, contact CalPERS for information on any restrictions.
Social Security does have restrictions on how much you can earn without being penalized if you are receiving Social Security benefits but are not
of full Social Security retirement age. Contact Social Security for details.
Learn More about Your Retirement There are several ways you can find out more about both CalPERS and
Social Security benefits that you will be entitled to:
1. Attend Saturday Pre-retirement Seminars sponsored by CSEA's
Pre-retirement Committee These seminars include speakers from
CalPERS. They also qualify you to schedule an individual appointment with CalPERS if you register for the seminar online or fill out
a CalPERS registration card at the seminar.
2.Access CalPERS (and Social Security) online. These are very
valuable tools. If you have forgotten your CalPERS password or
user name you must call CalPERS at (888) 225-7377 to reset your
information.
3. Enroll in CalPERS classes offered at Regional Offices and in various school districts and county offices of education.
4. Enroll in and complete several on-line classes offered by CalPERS.
Register at https://my.calpers.ca.gov or call (888) 225-7377.
5. Ask your Chapter or District to request an Understanding
CalPERS workshop conducted by CSEA staff who work closely
with CalPERS staff. This workshop specifically addresses CalPERS
and Social Security information for classified school employees.
26
How to
Calculate Your
Retirement
Benefits
The following pages will help guide you through
calculating your retirement.
Please review the information on the following pages. You will see the factors that affect your
retirement. Learn how pay rates are averaged, the approximate percent of your average you will
receive based on your age and CalPERS service credit, the breakdown of the quarter anniversaries
of your age and the steps to calculating your lifetime benefit.
27
28
How Your Retirement is Calculated
The three factors used to determine how much lifetime monthly
income you will receive after retirement are:
a. Age at Retirement
b. Total CalPERS Service Credit
c. Final Compensation (your earnable full time monthly pay rate averaged over a 12 or 36 consecutive month period). This figure is adjusted for Social Security contributions, if appropriate.
The simple facts about your retirement are:
a. The older you are at retirement,
b. The more CalPERS service credit you have,
c. The more months you work in a 12 month final compensation period (if you entered CalPERS before 1/1/2013) or a 36 month final compensation period (if you entered CalPERS on or after 1/1/2013)
d. The higher your full time pay rate, the more lifetime monthly income you will receive in your retirement.
AGE: You can retire at age 50 or older if you entered CalPERS before 1/1/2013. Each three months from your birthday (until age 63), the percent of your average pay rate that you will receive in retirement increases until you retire.
After reaching age 63, you will still receive a higher retirement by working longer because you will add more service
credit. If you entered CalPERS on or after 1/1/2013 the minimum age at which you can retire is 52. The percent of
your retirement will increase each 3 months until age 67).
CalPERS Service Credit: Once you enter the CalPERS system you earn service credit for every hour you
work up to 40 hours a week. Once you have worked 1720 hours in a fiscal year, (July 1 thru June 30), you will
receive a full year of service credit for that year. If you work fewer than 1720 hours you will receive less service credit.
Months Worked in a Fiscal Year: If you are a less than 12 month employee it is important to verify
with CalPERS that your employer has reported any work performed in each month, even if
it is only for a day or two. This can make a big difference in how your retirement is calculated.
Final Compensation: This is your average, full time pay rate. To determine your average, CalPERS will
credit you with a full time pay rate for each month you are reported as having worked. The pay rates are added
and the total divided by 12 to get an average (if you entered CalPERS before 1/1/2013). A 36 month average will
be used if you entered CalPERS 1/1/2013 or later.
On the following pages are two sets of charts and sample calculations. The charts on pages 31 thru 33 are
for school members who entered CalPERS before 1/1/2013. The charts on pages 35 thru 37 are for school
members who entered CalPERS on or after 1/1/2013.
29
30
Calculating Final Compensation—School Members in CalPERS before 1/1/2013
For new employees hired after 1/1/2013 final compensation will be based on the highest 36 consecutive months
worked.
The final compensation figure must be appropriately adjusted for Social Security contributions made prior
to 1/1/01 (See explanation at bottom of page)
Example of Final Compensation with Retirement Date 11/01/15 and Two Pay Rates within the Year
12 Month Employee (or 11 month employee who works in a 12th month)
From To Pay Rate Months Total
Final Compensation
11/01/201404/30/2015 $2,000
6
12,000
05/01/201510/31/2015 $2,200
6
13,200
12
25,200
÷ 12
$2,100.00
11 Month Employee (or 10 month employee who works in an 11th month)
From To
Pay Rate Months Total
Final Compensation
11/01/201404/30/2015 $2,000
6
12,000
05/01/201510/31/2015 $2,200
5
11,000
11
23,000
÷ 12
$1,916.67
10 Month Employee (or 9 Month Employee Who Works in an 11th Month)
From To Pay Rate Months Total 11/01/201404/30/2015 $2,000
6
12,000
05/01/201510/31/2015 $2,200
4
8,800
10
20,800
Final Compensation
÷ 12
$1,733.33
Note: If you work less than eight hours a day, CalPERS will use the same calculations as those shown
above to determine the Final Compensation upon which your retirement is based. You will receive less
retirement, however, because you have earned less service credit.
Social Security Adjustment for work prior to January 1, 2001
If you contributed to Social Security prior to January 1, 2001, you did not make contributions to CalPERS
on the first $133.33 earned each month. Therefore, when retiring the Final Compensation was reduced by
$133.33 before calculating the retirement allowance.
After January 1, 2001, you were required to contribute on all of your earnings. Therefore, in calculating the
retirement allowance there is no $133.33 reduction from the final compensation for the years you worked
since that date.
CalPERS will make this adjustment, if applicable, when calculating your retirement.
31
School Members 2% at 55 Formula
(For School Members Who Entered CalPERS Before 1/1/2013)
P E R C E N TA G E O F F I N A L C O M P E N S AT I O N
Exact
Age
andCompensation
Percentage of Final Compensation
Percentage
of Final
Age
50
51
52
53
54
55
56
57
58
59
60
61
2 55
percent
@
62
63+
Benefit Factor 1.100 1.280 1.460 1.640 1.820 2.000 2.064 2.126 2.188 2.250 2.314 2.376 2.438 2.500
Percentage of Final Compensation
Years of Service
5
5.50
6.40
7.30
8.20
9.10
10.00 10.32
10.63 10.94 11.25 11.57 11.88 12.19 12.50
6
6.60
7.68
8.76
9.84
10.92 12.00 12.38
12.76 13.13 13.50 13.88 14.26 14.63 15.00
7
7.70
8.96
10.22 11.48 12.74 14.00 14.45
14.88 15.32 15.75 16.20 16.63 17.07 17.50
8
8.80
10.24 11.68 13.12 14.56 16.00 16.51
17.01 17.50 18.00 18.51 19.01 19.50 20.00
9
9.90
11.52 13.14 14.76 16.38 18.00 18.58
19.13 19.69 20.25 20.83 21.38 21.94 22.50
10
11.00
12.80 14.60 16.40 18.20 20.00 20.64
21.26 21.88 22.50 23.14 23.76 24.38 25.00
11
12.10
14.08 16.06 18.04 20.02 22.00 22.70
23.39 24.07 24.75 25.45 26.14 26.82 27.50
12
13.20
15.36 17.52 19.68 21.84 24.00 24.77
25.51 26.26 27.00 27.77 28.51 29.26 30.00
13
14.30
16.64 18.98 21.32 23.66 26.00 26.83
27.64 28.44 29.25 30.08 30.89 31.69 32.50
14
15.40
17.92 20.44 22.96 25.48 28.00 28.90
29.76 30.63 31.50 32.40 33.26 34.13 35.00
15
16.50
19.20 21.90 24.60 27.30 30.00 30.96
31.89 32.82 33.75 34.71 35.64 36.57 37.50
16
17.60
20.48 23.36 26.24 29.12 32.00 33.02
34.02 35.01 36.00 37.02 38.02 39.01 40.00
17
18.70
21.76 24.82 27.88 30.94 34.00 35.09
36.14 37.20 38.25 39.34 40.39 41.45 42.50
18
19.80
23.04 26.28 29.52 32.76 36.00 37.15
38.27 39.38 40.50 41.65 42.77 43.88 45.00
19
20.90
24.32 27.74 31.16 34.58 38.00 39.22
40.39 41.57 42.75 43.97 45.14 46.32 47.50
20
22.00
25.60 29.20 32.80 36.40 40.00 41.28
42.52 43.76 45.00 46.28 47.52 48.76 50.00
21
23.10
26.88 30.66 34.44 38.22 42.00 43.34
44.65 45.95 47.25 48.59 49.90 51.20 52.50
22
24.20
28.16 32.12 36.08 40.04 44.00 45.41
46.77 48.14 49.50 50.91 52.27 53.64 55.00
23
25.30
29.44 33.58 37.72 41.86 46.00 47.47
48.90 50.32 51.75 53.22 54.65 56.07 57.50
24
26.40
30.72 35.04 39.36 43.68 48.00 49.54
51.02 52.51 54.00 55.54 57.02 58.51 60.00
25
27.50
32.00 36.50 41.00 45.50 50.00 51.60
53.15 54.70 56.25 57.85 59.40 60.95 62.50
26
28.60
33.28 37.96 42.64 47.32 52.00 53.66
55.28 56.89 58.50 60.16 61.78 63.39 65.00
27
29.70
34.56 39.42 44.28 49.14 54.00 55.73
57.40 59.08 60.75 62.48 64.15 65.83 67.50
28
30.80
35.84 40.88 45.92 50.96 56.00 57.79
59.53 61.26 63.00 64.79 66.53 68.26 70.00
29
31.90
37.12 42.34 47.56 52.78 58.00 59.86
61.65 63.45 65.25 67.11 68.90 70.70 72.50
30
33.00
38.40 43.80 49.20 54.60 60.00 61.92
63.78 65.64 67.50 69.42 71.28 73.14 75.00
31
34.10
39.68 45.26 50.84 56.42 62.00 63.98
65.91 67.83 69.75 71.73 73.66 75.58 77.50
32
35.20
40.96 46.72 52.48 58.24 64.00 66.05
68.03 70.02 72.00 74.05 76.03 78.02 80.00
33
36.30
42.24 48.18 54.12 60.06 66.00 68.11
70.16 72.20 74.25 76.36 78.41 80.45 82.50
34
—
43.52 49.64 55.76 61.88 68.00 70.18
72.28 74.39 76.50 78.68 80.78 82.89 85.00
35
—
—
36
—
—
—
37
—
—
—
—
38
—
—
—
—
—
39
—
—
—
—
—
—
80.50
82.91 85.33 87.75 90.25 92.66 95.08 97.50
40
—
—
—
—
—
—
—
85.04 87.52 90.00 92.56 95.04 97.52 100.0
(888) CalPERS (225-7377)
32
51.10 57.40 63.70 70.00 72.24
|
59.04 65.52 72.00 74.30
67.34 74.00 76.37
76.00 78.43
w w w. c a l p e r s . c a . g o v
74.41 76.58 78.75 80.99 83.16 85.33 87.50
76.54 78.77 81.00 83.30 85.54 87.77 90.00
78.66 80.96 83.25 85.62 87.91 90.21 92.50
80.79 83.14 85.50 87.93 90.29 92.64 95.00
19
BENEFIT FACTORS
2% at 55 Benefit Factors
The chart below shows how the benefit factor increases for each quarter year of
age from 50 to 63.
Age and Quarter Anniversary Benefit Factor Chart
For School Members Who Entered CalPERS Before 1/1/2013
Age
Exact Year
¼ Year
½ Year
¾ Year
50
1.100%
1.146%
1.190%
1.236%
51
1.280%
1.326%
1.370%
1.416%
52
1.460%
1.506%
1.550%
1.596%
53
1.640%
1.686%
1.730%
1.776%
54
1.820%
1.866%
1.910%
1.956%
55
2.000%
2.016%
2.032%
2.048%
56
2.064%
2.080%
2.096%
2.110%
57
2.126%
2.142%
2.158%
2.172%
58
2.188%
2.204%
2.220%
2.236%
59
2.250%
2.268%
2.282%
2.298%
60
2.314%
2.330%
2.346%
2.360%
61
2.376%
2.392%
2.406%
2.422%
62
2.438%
2.454%
2.470%
2.486%
63 or older
2.500%
—
—
—
Sample Retirement Calculation
Example
AgeBenefit Factor
Step I – Choose Age to Retire and Note Benefit Factor
552%
Step 2 – Multiply
Benefit Factor for Age
2%
x
Service Credit
25 years
% of Final Compensation
=
50%
Step 3 – Multiply
% of Final Compensation Final Compensation
50%
x
$2,100 *Unmodified Lifetime Monthly
Retirement Allowance
=
$1,050
*Note: Allowance will be reduced if choosing other Options
33
CalPERS Member Booklet
|
S ch o o l
34
Calculating Final Compensation for Employees
Who Entered CalPERS On or After 1/1/2013
• For school members, final compensation is the full time pay rate (not earnings) averaged over
the highest 12 consecutive months worked. (This applies to employees who were hired prior
to 1/1/2013. For new employees hired after 1/1/2013 final compensation will be based on the highest
36 consecutive months worked.)
• The final compensation figure must be appropriately adjusted for Social Security contributions made prior to
1/1/01 (See explanation at bottom of page)
Example of Final Compensation with Retirement Date 11/01/2038 and Two Pay Rates within the Year
12 Month Employee (or 11 Month Employee Who Works in a 12th Month)
From To Pay Rate Months Total
Final Compensation
11/01/203604/30/2038 $2,000
18
36,000
05/01/203810/31/2039 $2,200
18
39,600
36
75,600
÷ 36
$2,100.00
11 Month Employee (or 10 Month Employee Who Works in an 11th Month)
From To Pay Rate Months Total
Final Compensation
11/01/203604/30/2038 $2,000
17
34,000
05/01/203810/31/2039 $2,200
16
35,200
33
69,200
÷ 36
$1,922.22
10 Month Employee (or 9 Month Employee Who Works in an 11th Month)
From To Pay Rate Months Total 11/01/203604/30/2038 $2,000
16
32,000
05/01/203810/31/2039 $2,200
14
30,800
30
62,800
Final Compensation
÷ 36
$1,744.44
Note: If you work less than eight hours a day, CalPERS will use the same calculations as those shown above
to determine the Final Compensation upon which your retirement is based. You will receive less retirement,
however, because you have earned less service credit.
No Adjustment for Social Security for work Prior to January 1, 2001
If you were not a school employee contributing to CalPERS prior to January 1, 2001 your CalPERS final
compensation would not be subject to any reduction because you are also contributing to Social Security.
35
School Members 2% at 62 Formula
(For School Members Who Entered CalPERS On or After 1/1/2013)
P e R c e nAge
t a gand
e o F Percentage
F i n a l c o m P eof
n s Final
a t i o n Compensation
Exact
Age
52
52
53
53
54
54
55
55
56
56
57
57
58
58
59
59
60
60
61
61
62
62
63
63
64
64
65
65
66
66
67+
67+
Benefit
Benefit
Factor
Factor
1.00
1.00
1.10
1.10
1.20
1.20
1.30
1.30
1.40
1.40
1.50
1.50
1.60
1.60
1.70
1.70
1.80
1.80
1.90
1.90
2.00
2.00
2.10
2.10
2.20
2.20
2.30
2.30
2.40
2.40
2.50
2.50
Years of
Service
24
36
Percentage of Final Compensation
5
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
10.00 10.50 11.00 11.50 12.00
12.50
6
6.00
6.60
7.20
7.80
8.40
9.00
9.60
10.20
10.80
11.40
12.00 12.60 13.20 13.80 14.40
15.00
7
7.00
7.70
8.40
9.10
9.80
10.50 11.20
11.90
12.60
13.30
14.00 14.70 15.40 16.10 16.80
17.50
8
8.00
8.80
9.60
10.40
11.20 12.00 12.80
13.60
14.40
15.20
16.00 16.80 17.60 18.40 19.20
20.00
9
9.00
9.90
10.80
11.70
12.60 13.50 14.40
15.30
16.20
17.10
18.00 18.90 19.80 20.70 21.60
22.50
10
10.00
11.00
12.00
13.00
14.00 15.00 16.00
17.00
18.00
19.00
20.00 21.00 22.00 23.00 24.00
25.00
11
11.00
12.10
13.20
14.30
15.40 16.50 17.60
18.70
19.80
20.90
22.00 23.10 24.20 25.30 26.40
27.50
12
12.00
13.20
14.40
15.60
16.80 18.00 19.20
20.40
21.60
22.80
24.00 25.20 26.40 27.60 28.80
30.00
13
13.00
14.30
15.60
16.90
18.20 19.50 20.80
22.10
23.40
24.70
26.00 27.30 28.60 29.90 31.20
32.50
14
14.00
15.40
16.80
18.20
19.60 21.00 22.40
23.80
25.20
26.60
28.00 29.40 30.80 32.20 33.60
35.00
15
15.00
16.50
18.00
19.50
21.00 22.50 24.00
25.50
27.00
28.50
30.00 31.50 33.00 34.50 36.00
37.50
16
16.00
17.60
19.20
20.80
22.40 24.00 25.60
27.20
28.80
30.40
32.00 33.60 35.20 36.80 38.40
40.00
17
17.00
18.70
20.40
22.10
23.80 25.50 27.20
28.90
30.60
32.30
34.00 35.70 37.40 39.10 40.80
42.50
18
18.00
19.80
21.60
23.40
25.20 27.00 28.80
30.60
32.40
34.20
36.00 37.80 39.60 41.40 43.20
45.00
19
19.00
20.90
22.80
24.70
26.60 28.50 30.40
32.30
34.20
36.10
38.00 39.90 41.80 43.70 45.60
47.50
20
20.00
22.00
24.00
26.00
28.00 30.00 32.00
34.00
36.00
38.00
40.00 42.00 44.00 46.00 48.00
50.00
21
21.00
23.10
25.20
27.30
29.40 31.50 33.60
35.70
37.80
39.90
42.00 44.10 46.20 48.30 50.40
52.50
22
22.00
24.20
26.40
28.60
30.80 33.00 35.20
37.40
39.60
41.80
44.00 46.20 48.40 50.60 52.80
55.00
23
23.00
25.30
27.60
29.90
32.20 34.50 36.80
39.10
41.40
43.70
46.00 48.30 50.60 52.90 55.20
57.50
24
24.00
26.40
28.80
31.20
33.60 36.00 38.40
40.80
43.20
45.60
48.00 50.40 52.80 55.20 57.60
60.00
30.00
32.50
35.00 37.50 40.00
42.50
45.00
47.50
50.00 52.50 55.00 57.50 60.00
62.50
25
25.00
27.50
26
26.00
28.60
31.20
33.80
36.40 39.00 41.60
44.20
46.80
49.40
52.00 54.60 57.20 59.80 62.40
65.00
27
27.00
29.70
32.40
35.10
37.80 40.50 43.20
45.90
48.60
51.30
54.00 56.70 59.40 62.10 64.80
67.50
28
28.00
30.80
33.60
36.40
39.20 42.00 44.80
47.60
50.40
53.20
56.00 58.80 61.60 64.40 67.20
70.00
29
29.00
31.90
34.80
37.70
40.60 43.50 46.40
49.30
52.20
55.10
58.00 60.90 63.80 66.70 69.60
72.50
30
30.00
33.00
36.00
39.00
42.00 45.00 48.00
51.00
54.00
57.00
60.00 63.00 66.00 69.00 72.00
75.00
31
31.00
34.10
37.20
40.30
43.40 46.50 49.60
52.70
55.80
58.90
62.00 65.10 68.20 71.30 74.40
77.50
32
32.00
35.20
38.40
41.60
44.80 48.00 51.20
54.40
57.60
60.80
64.00 67.20 70.40 73.60 76.80
80.00
33
33.00
36.30
39.60
42.90
46.20 49.50 52.80
56.10
59.40
62.70
66.00 69.30 72.60 75.90 79.20
82.50
34
34.00
37.40
40.80
44.20
47.60 51.00 54.40
57.80
61.20
64.60
68.00 71.40 74.80 78.20 81.60
85.00
35
35.00
38.50
42.00
45.50
49.00 52.50 56.00
59.50
63.00
66.50
70.00 73.50 77.00 80.50 84.00
87.50
36
36.00
39.60
43.20
46.80
50.40 54.00 57.60
61.20
64.80
68.40
72.00 75.60 79.20 82.80 86.40
90.00
37
37.00
40.70
44.40
48.10
51.80 55.50 59.20
62.90
66.60
70.30
74.00 77.70 81.40 85.10 88.80
92.50
38
38.00
41.80
45.60
49.40
53.20 57.00 60.80
64.60
68.40
72.20
76.00 79.80 83.60 87.40 91.20
95.00
39
39.00
42.90
46.80
50.70
54.60 58.50 62.40
66.30
70.20
74.10
78.00 81.90 85.80 89.70 93.60
97.50
40
40.00
44.00
48.00
52.00
56.00 60.00 64.00
68.00
72.00
76.00
80.00 84.00 88.00 92.00 96.00 100.00
CalPERS Member Publication
|
S ch o o l
RetiRement FoRmulas and BeneFit FactoRs
Agechart
andbelow
Quarter
Anniversary
Factor
Chart
The
shows how
the benefit factorBenefit
increases for
each quarter
year
of age from 52 to 67.
For School Members who Entered CalPERS On or After 1/1/2013
2% at Age 62 Benefit Formula
Minimum Age for Retirement 52
Membership Date on or After January 1, 2013
Age
Exact Year
¼ Year
½ Year
¾ Year
52
1.000
1.025
1.050
1.075
53
1.100
1.125
1.150
1.175
54
1.200
1.225
1.250
1.275
55
1.300
1.325
1.350
1.375
56
1.400
1.425
1.450
1.475
57
1.500
1.525
1.550
1.575
58
1.600
1.625
1.650
1.675
59
1.700
1.725
1.750
1.775
60
1.800
1.825
1.850
1.875
61
1.900
1.925
1.950
1.975
62
2.000
2.025
2.050
2.075
63
2.100
2.125
2.150
2.175
64
2.200
2.225
2.250
2.275
65
2.300
2.325
2.350
2.375
66
2.400
2.425
2.450
2.475
67 or older
2.500
2.500
2.500
2.500
Sample Retirement Calculation
Example
AgeBenefit Factor
Step I – Choose Age to Retire and Note Benefit Factor
622%
Step 2 – Multiply
Benefit Factor for Age
2%
x
Service Credit
25 years
% of Final Compensation
=
50%
Step 3 – Multiply
% of Final Compensation Final Compensation
50%
x
$2,100 *Unmodified Lifetime Monthly
Retirement Allowance
=
$1,050
*Note: Allowance will be reduced if choosing other Options
37
38
Important Phone Numbers and Web Sites
CSEA
(800) 632-2128, ext. 1205/ext. 1309
CSEA Website
www.csea.com
Social Security
(800) 772-1213
Social Security Website
www.ssa.gov
Medicare Website
www.medicare.gov
All callers to CalPERS should contact the Central Call Center in Sacramento
(888) 225-7377
www.calpers.ca.gov
CalPERS Member Services Division Address
CalPERS Member Services
P.O. Box 942704 (mailing address)
400 “Q” Street
Sacramento 94229-2701
Mail, Fax or Visit Your CalPERS Regional Office
Fresno Office
Orange Office
San Diego Office
10 River Park Place East Ste 230
Fresno 93720
Fax (559) 440-4901
500 N. State College, Ste. 750
Orange 92868
Fax (714) 939-4701
7676 Hazard Center Dr., Suite 350
San Diego 92108
Fax (619) 220-7201
Glendale Office
Sacramento Office
Walnut Creek Office
Glendale Plaza
655 N. Central Ave., Suite 1400
Glendale 91203-1400
Fax (818) 662-4304
P.O. Box 942710
400 Q Street
Sacramento 84229
Fax (916) 795-2761
1340 Treat Blvd., Ste. 200
Walnut Creek
Fax (925) 746-8501
San Jose Office
San Bernardino Office
181 Metro Dr., Suite 520
San Jose 95110
Fax (408) 451-8001
650 E. Hospitality Ln., Suite 330
San Bernardino 92408
Fax (909) 806-4820
39
The Importance of Appointing A
Chapter Pre-Retirement Resource Person
Every Chapter President should appoint a Chapter Pre-Retirement
Resource Person (CPRP) so members will have someone locally to
provide them information.
➴
Tip
If your chapter does
not have a Chapter
Pre-retirement
Resource Person
please try to see that
one is appointed and
the form included in
this booklet is submitted to San Jose at the
address shown as soon
as possible.
CSEA’s Pre-retirement Resource Committee has developed a binder
that will help CPRPs become familiar with resources that are available to assist members in learning about retirement. In the binder is a
checklist of questions to help the members seek the right information
for their personal circumstances. The CPRP will be notified of any
training opportunities available. An important part of training will
be to attend any CSEA sponsored Pre-retirement Seminars near them.
The CPRP is encouraged to provide resources only, they are discouraged from answering most technical questions. The CPRP should,
however, learn as much as possible about retirement benefits so they
can recognize when a member needs assistance. The CPRP should
provide phone numbers and website information.
One of the most important tasks of the CPRP is to study the CSEA
contract in their own district. When a member asks about health
benefits or other after-retirement benefits from their district, the CPRP
can tell them what is available. Health benefits are one of the biggest
concerns people have when planning their retirement. Health benefit
questions cannot be answered by CalPERS staff or CSEA staff who have
not been involved in local negotiations.
The CPRP is expected to be a liaison between your chapter and your
Area Pre-retirement Committee member. They should inform classified employees in the district about CSEA sponsored Pre-retirement
seminars in the area. The CPRP may suggest that the Chapter host a
future Pre-retirement Seminar. Instructions for hosting a seminar are
included in this booklet and in the CPRP training materials.
The CPRP is also a liaison to the Retiree Unit. They can help by making sure every person retiring understands they can continue to receive
CSEA discounts and services by joining the CSEA Retire Unit.
CSEA benefits by keeping retirees in the membership. They can help
win important elections and make the union stronger. The retirees benefit by receiving many money saving discounts and services, important
information and assistance with CalPERS and Social Security needs.
If your chapter does not have a Chapter Pre-retirement Resource
Person please try to see that one is appointed and the form on the
following page is submitted to San Jose at the address shown as soon
as possible.
40
California School Employees Association
AFL–CIO
Chapter Pre-Retirement Resource Person
Appointment Form
Chapter Name____________________________________________________________ Number________
_____ I have appointed the following person to serve as Chapter Pre-Retirement
Resource Person
_____ This appointment replaces our Chapter’s previous appointee
_____ This appointee needs a current Resource Binder
Appointee’s Name_________________________________________________________________________
Address_________________________________________________________________________________
City____________________________________________________________________ Zip_____________
Home Phone ( ____ ) ___________________________ Work Phone ( ____ ) __________________________
Cell Phone ( ____ ) ____________________________
Email Address____________________________________________________________________________
Job Classification__________________________________________________________________________
_______________________________________________________________________________________
Signed (Chapter President)
Date
Please Complete and mail to:
CSEA Member Benefits
2045 Lundy Avenue
San Jose, CA 95131
8625_FM_0511
42
Host a CSEA Sponsored Pre-retirement Seminar
or Presentation
If you want to host a Pre-Retirement Seminar...
a. Talk to your Chapter Leadership about hosting a Saturday morning
Pre-retirement Seminar. In many cases this seminar requires a facility
that will hold over 200 attendees.
b. If the committee chooses your chapter to host the seminar, your chapter
is responsible for purchasing bottled water. You may also add some light
refreshments at your chapter’s discretion. You will be reimbursed for the
water. The committee member will discuss with you the amount of
reimbursement and what you can expect the Retiree Unit will provide
for your seminar.
c. If your chapter has free use of facilities it will be beneficial—check your
local contract.
d. You will need to make available a screen, two extension cords or one cord
with a power strip, a table placed in front of the screen for the laptop and
the projector, a podium, a table for registration and three display tables
for materials (as well as a table for the water/light refreshments).
e. Notices will be sent through Friday mail to all Chapters in the Area about
the Seminar. Information will also be made available on the CSEA Home
Page. An email blast will be sent by CSEA just prior to the seminar.
f. You will be expected to promote the seminar date and location to your
own chapter members. Be sure to tell your members the appropriate
phone number and extension to call so the committee member will
know how many to expect. Members will not receive a return call but
a space will be available for them.
g. On the day of the seminar it is important for you and other members from your Chapter to arrive at the site at 7:30 a.m. Your chapter
is responsible for setting up and manning the refreshment tables.
Assistance at the registration table would be appreciated.
h. To volunteer to host a Pre-retirement Seminar, please contact your Area
Pre-retirement Committee member. You will find contact information
by visiting CSEA’s website. After logging in click on “Contact Us” and
“CSEA Directory”. Go to Committees, scroll down to Pre-Retirement
Resource Committee.
Request an Understanding CalPERS Seminar
CSEA Staff present seminars for Chapters, Regions or School District Staff
Development events. Members learn about their CalPERS benefits, changes in
law that affect their retirement and new CalPERS procedures. To request an
Understanding CalPERS presentation call (800) 632-2128, EXT. 1205 OR 1309.
43
44
CSEA Retiree Unit
Don’t lose your Union Benefits when you retire
or leave school employment. Stay in the Union!
Here’s how:
Any classified employee who retires or leaves school employment at age 50 or older is urged to join the
CSEA Retiree Unit. Retired employees from public agencies represented by CSEA are also invited to
join. The cost is only $3 per month if deducted from your CalPERS check. You may choose instead to
send $36 annually.
Here’s what you get
• money saving discounts
• voluntary insurances
• free $5,000 accidental death and
• representation before the CalPERS
• free legal advice program
• assistance with CalPERS and Social
• valuable information about state
Board and the Legislature
• publications to keep you informed
mailed regularly to your home
dismemberment coverage
Security issues
and national retiree issues
• a nationwide network of other
retirees
• Union Plus (AFL-CIO) benefits
To join the CSEA Retiree Unit complete the application below and mail it to the address shown.
California School Employees Association
APPLICATION FOR RETIREE UNIT/COUNCIL MEMbERShIP
__ __ __ – ____ __ – __ __ __ __
_______________________________________
Social Security Number
SUPPORT CSEA’S POLITICAL EDUCATION FUND
E-mail Address
______________________________________________ __________________________________
Last Name
First Name
Middle Initial
________________________________________________________________________________
Street Address or P.O. Box
City
State
Zip Code
(_______)________________________ ________________________________________________
Area Code
Telephone Number
County of Residence
_________________________________________________________________________________
School District or Public Agency Retired From
Date Retired
Were you a member of CSEA when you retired?
 Yes  No
If yes, name and number of CSEA chapter you belonged to:
__________________________________________________________________________________
Check One:
 I hereby authorize $3.00/month to be deducted from the CalPERS warrant I receive
(until revoked by me in writing).
 First year’s dues of $36 attached. (Please attach check or money order payable to CSEA and
mail to: California School Employee Association; 2045 Lundy Ave., San Jose, CA 95131.)
 Please charge the following credit card for the annual dues amount of $36.00.
Monthly Payroll Deduction (For CalPERS Retirees)
I hereby authorize CalPERS to deduct each month the sum of:
$3.00 $5.00 $10.00 Other $_________________ (Please circle
your choice).
Alternate Contributiion (Only for Retirees who are not CalPERS
Members)
Enclosed is a check in the sum of: $3.00 $5.00 $10.00 Other
$_________________ (Please circle your choice).
Place check, made payable to CSEA Victory Club, and application in
an envelope and mail to CSEA.
I understand that my contributions will be used to advance the
political interests of classified employees, public education, working
families and the labor movement by supporting federal, state and
local candidates, and that any contributions over $200 per calendar
year will be used to support or oppose ballot measures and pass
school bonds and parcel taxes. I understand that this authorization
is voluntary and that I may refuse to contribute without reprisal.
(The amounts shown are only suggestions. You are free to indicate any
amount you choose and there will be no favor or disadvantage by reason
of the amount of your contribution or your decision not to contribute. This
authorization may be revoked in writing at any time.)
Contributions to the CSEA Political Education Fund are not deductible for
federal income tax purposes.
The effective date will be the date of the next warrant following receipt of
this application by CalPERS.
________________________________________________________________________________________________________________
Name on Card
Account #
Expiration Date
Credit Card Security Code (CCSC)
Member’s Signature ________________________________________________________ Date _____________________________________
Initial Here
PACE of CSEA VIctory Club
Federal and State PAC
1064_0913
46
Notes
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
Notes
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
Notes
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
California School
Employees Association
AFL-CIO