publication 907 - california school employees...
TRANSCRIPT
AFL-CIO
YourCalPERS
Defined Benefit
Rights and Rewards
Understanding
Publication 907
A Guide for all Classified School Employees
contributing to CalPERS
Revised September 2014
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
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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 GovERnEdCalPERS 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!
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 appropri-ate 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.
It’s important to support people who will continue to pay attention to classi-fied employees needs. PLEASE VOTE IN ALL CalPERS ELECTIONS!
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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 formu-las 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 differ-ent 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 bar-gaining 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 voluntari-ly 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 contribu-tion 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 RetirementWhen you retire you will receive a lifetime income from CalPERS because you are part of a “defined benefit” pension plan. This means your pen-sion is determined by specific “defined” factors (age at retirement, total CalPERS service credit, full time pay rate).
long-term CareAs 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
When you retire you will receive a lifetime income from “CalPERS”.
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medical benefits if negotiatedCalPERS administers a medical benefits program, it is only available to you if the district you are retiring from is covering all eligible active clas-sified 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 investmentsIt’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 retire-ment 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.
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 con-version 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.
If you are working in one or more positions for four hours or more a day…..you are required to become a CalPERS member.
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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 con-tributions. 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 month-ly 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 earn-ings 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.
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), longev-ity, 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 allow-ances 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 pro-vided. 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).
CalPERS requires that your employer report and identify the earn-ings you generated (even one hour) in each pay period.
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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 compen- sation, 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.
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 com-pounded 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.
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.
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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 impor-tantly, 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 leav-ing 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.
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 imme-diately begin drawing a lifetime income from CalPERS while working elsewhere.
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If you are under minimum retirement age with five years of employ-ment 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.
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.
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.
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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.
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.
A lump sum withdrawal can cause you to lose thousands of dollars in lifetime earnings from CalPERS.
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diSability REtiREmEnt and EmPloyER’S obliGation 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 retire-ment 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 retro-active to your original retirement date.
If you learn you will NOT receive a higher pension from CalPERS by applying for disabil-ity, 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.
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If you have less than five years of CalPERS service credit but have contrib-uted 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 retire-ment, even if you do not apply for a CalPERS disability retirement.
tERminal illnESS—EmERGEnCy REtiREmEntIf 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 call-ing 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 ser-vice. You should understand the pre-retirement death benefit and inform your beneficiaries about it.
If you pass away while still employed, at least all of your own CalPERS contributions and inter-est, plus some addition-al income, will be paid to your beneficiary.
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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 contribu-tions 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 contribu- tions, plus appropriate salary, will be paid to your designated beneficiary or beneficiaries.
*(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 informa-tion contact CalPERS.
Please understand the CalPERS Special Power of Attorney applies ONLY to CalPERS transactions and only while you are still alive.
You should have a CalPERS Power of Attorney on file at CalPERS, or be certain you have a Power of Attorney that con-tains a durable clause that will apply to your retirement funds. You will find the Power of Attorney forms in the back of this document.
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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 retirement2. 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 con-sidering such a purchase.
Service Prior to membershipIf 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 applica-tion 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 pur-chasing any service credit because a delay will increase interest costs.
If you plan to retire soon purchasing some types of service credit just before retiring may benefit you.
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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 contri-butions would have earned.
Re-depositing funds Previously withdrawn from CalPERSFor 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.
military Service or approved leaveMilitary, 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 con-tributions on significant earnings at the time of retirement there should be no reduction. Contact Social Security or CSEA for further information.
PRioR SERviCEIf 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 con-tract, the former employer may even be required to pay for all or part of your prior service.
How to Purchase Service CreditTo 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.
Please note, some service credit pur-chases can affect Social Security benefits later
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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 pur-chase. 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 bEnEfitSFull 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 auto-matically 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 with-in the following months.
Unused sick leave is an automatic benefit for school members who retire within 120 days of separation.
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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 anni- versary 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 birth-day, 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 reci-procity 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 dateCheck 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
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assign your Medicare premium to the HMO. In some cases there are no additional premiums and no deductibles required. This can be an afford-able 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 CautionA 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 sal-ary, 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.
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If you work eight hours a day but less than a 12 month year, your final com-pensation will be less.
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 con-secutive 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 retire-ment 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 retire-ment. If you understand how retirement is calculated you will better understand what factors you may be able to change to increase your retire-ment before you reach retirement age.
On pages 27 through 37 of this booklet there are charts to explain the cal-culations 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 con-tributions, 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.
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 retire-ment application.
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uSE my/CalPERS to EStimatE, aPPly foR REtiREmEnt and manaGE youR infoRmationmy/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.
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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 beneficia-ries understand the option you have chosen.
Survivor ContinuanceSchool employees, whose districts remain in the school pool, are auto-matically 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 California3. 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.
unmodified optionThis 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 eli-gible, 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.
The unmodified Option can cause considerable loss to loved ones if you are deceased while some of your own contributions remain at CalPERS.
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option 1This 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 2wThese 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 3wThese 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 4Option 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 benefi-ciary in a lump sum or in monthly payments.
To choose Option 4 you must inform CalPERS at the time of your appli-cation to retire so they can calculate this option for you.
ElECtRoniC fundS tRanSfER It is recommended you have CalPERS electronically transfer your retire-ment 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 complet-ed 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.
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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 ques-tions about how much to deduct, check with your tax professional.
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 fol-lowing 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
Stay in the Union. Join the Retiree Unit, Get great benefits. Deduct $3.00 per month from your CalPERS check
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Security, it IS coordinated with Social Security for the majority of classi-fied employees. Checking the box makes Social Security staff think you did not pay Social Security on your CalPERS earnings and it will pos-sibly 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 cov-ered 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 ser-vice credit that may not have been covered by Social Security.
You may apply for Social Security benefits as early as age 62, the ben-efit 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 verifica-tion 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
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.
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work in any CalPERS covered agency. This includes short term work, substituting, consulting, training or any kind of a temporary posi-tion. You MAY NOT work in a permanent part time position in any CalPERS covered agency while receiving a CalPERS pension with-out 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 with-out 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 appoint-ment 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 vari-ous 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.
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.
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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.
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29
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 birth-day (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.
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31
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
11/01/2014 04/30/2015 $2,000 6 12,00005/01/2015 10/31/2015 $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
11/01/2014 04/30/2015 $2,000 6 12,00005/01/2015 10/31/2015 $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 FinAl CoMPEnSAtion
11/01/2014 04/30/2015 $2,000 6 12,00005/01/2015 10/31/2015 $2,200 4 8,800 10 20,800 ÷ 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, 2001If 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.
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ExaCt aGE and PERCEntaGE of final ComPEnSation
( 8 8 8 ) C a l P E R S ( 2 2 5 - 7 3 7 7 ) | w w w. c a l p e r s . c a . g o v 19
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 NPercentage of Final Compensation
Age 50 51 52 53 54 55 56 57 58 59 60 61 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
Years of Service Percentage of Final Compensation
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 — — 51.10 57.40 63.70 70.00 72.24 74.41 76.58 78.75 80.99 83.16 85.33 87.50
36 — — — 59.04 65.52 72.00 74.30 76.54 78.77 81.00 83.30 85.54 87.77 90.00
37 — — — — 67.34 74.00 76.37 78.66 80.96 83.25 85.62 87.91 90.21 92.50
38 — — — — — 76.00 78.43 80.79 83.14 85.50 87.93 90.29 92.64 95.00
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
2percent@55
School Members 2% at 55 Formula (For School Members Who Entered CalPERS Before 1/1/2013)
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foR SCHool mEmbERS wHo EntEREd CalPERS bEfoRE 1/1/2013
C a l P E R S M e m b e r B o o k l e t | S ch o o l18
B E N E F I T F A C T O R S2% at 55 Benefit FactorsThe chart below shows how the benefit factor increases for each quarter year of age from 50 to 63.
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% — — —
2percent@55 Age and Quarter Anniversary Benefit Factor Chart
Sample Retirement Calculation
ExamPlE aGE bEnEfit faCtoR
StEP i – CHooSE aGE to REtiRE and notE bEnEfit faCtoR 55 2%
StEP 2 – multiPly
Benefit Factor for Age Service Credit % of Final Compensation
2% x 25 yEaRS = 50%
StEP 3 – multiPly
% of Final Compensation Final Compensation *Unmodified Lifetime Monthly Retirement Allowance
50% x $2,100 = $1,050
*notE: allowanCE will bE REduCEd if CHooSinG otHER oPtionS
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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
11/01/2036 04/30/2038 $2,000 18 36,00005/01/2038 10/31/2039 $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
11/01/2036 04/30/2038 $2,000 17 34,00005/01/2038 10/31/2039 $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 FinAl CoMPEnSAtion
11/01/2036 04/30/2038 $2,000 16 32,00005/01/2038 10/31/2039 $2,200 14 30,800 30 62,800 ÷ 36 $1,744.44Note: 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, 2001If 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.
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ExaCt aGE and PERCEntaGE of final ComPEnSation
24 C a l P E R S M e m b e r P u b l i c a t i o n | S ch o o l
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
Age 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67+
Benefit Factor 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50
Years of Service 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
25 25.00 27.50 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
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
School Members 2% at 62 Formula (For School Members Who Entered CalPERS On or After 1/1/2013)
Benefit Factor 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50
Age 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67+
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Sample Retirement CalculationExamPlE aGE bEnEfit faCtoR
StEP i – CHooSE aGE to REtiRE and notE bEnEfit faCtoR 62 2%
StEP 2 – multiPly
Benefit Factor for Age Service Credit % of Final Compensation
2% x 25 yEaRS = 50%
StEP 3 – multiPly
% of Final Compensation Final Compensation *Unmodified Lifetime Monthly Retirement Allowance
50% x $2,100 = $1,050
*notE: allowanCE will bE REduCEd if CHooSinG otHER oPtionS
238 8 8 C a l P E R S ( o r 8 8 8 - 2 2 5 - 7 3 7 7 ) | w w w. c a l p e r s . c a . g o v
R E t i R E m E n t F o R m u l a S a n d B E n E F i t F a C t o R S
The chart below shows how the benefit factor increases for each quarter year of age from 52 to 67.
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
Age and Quarter Anniversary Benefit Factor ChartfoR SCHool mEmbERS wHo EntEREd CalPERS on oR aftER 1/1/2013
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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
Important Phone Numbers and Web Sites
fresno office 10 River Park Place East Ste 230 Fresno 93720 Fax (559) 440-4901
Glendale office Glendale Plaza 655 N. Central Ave., Suite 1400 Glendale 91203-1400 Fax (818) 662-4304
San jose office181 Metro Dr., Suite 520 San Jose 95110 Fax (408) 451-8001
orange office 500 N. State College, Ste. 750 Orange 92868 Fax (714) 939-4701
Sacramento officeP.O. Box 942710 400 Q Street Sacramento 84229 Fax (916) 795-2761
San bernardino office650 E. Hospitality Ln., Suite 330 San Bernardino 92408 Fax (909) 806-4820
San diego office7676 Hazard Center Dr., Suite 350 San Diego 92108 Fax (619) 220-7201
walnut Creek office1340 Treat Blvd., Ste. 200 Walnut Creek Fax (925) 746-8501
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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.
CSEA’s Pre-retirement Resource Committee has developed a binder that will help CPRPs become familiar with resources that are avail-able 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 discour-aged 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 clas-sified 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 mak-ing 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 ben-efit 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.
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 submit-ted to San Jose at the address shown as soon as possible.
Tip➴
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 Benefits2045 Lundy AvenueSan Jose, CA 95131
Chapter Pre-Retirement Resource PersonAppointment Form
AFL–CIO
California School Employees Association
8625_FM_0511
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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 mem-bers 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 SEminaRCSEA 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.
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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.
To join the CSEA Retiree Unit complete the application below and mail it to the address shown.
SUPPORT CSEA’S POLITICAL EDUCATION FUND 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.
SUPPORT CSEA’S POLITICAL EDUCATION FUND 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.
PACE of CSEA VIctory Club Federal and State PAC
Initial Here
PACE of CSEA VIctory Club Federal and State PAC
Initial Here
__ __ __ – ____ __ – __ __ __ __ _______________________________________
Social Security Number 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:
__________________________________________________________________________________
__ __ __ – ____ __ – __ __ __ __ _______________________________________
Social Security Number 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:
__________________________________________________________________________________
________________________________________________________________________________________________________________
Name on Card Account # Expiration Date Credit Card Security Code (CCSC)
Member’s Signature ________________________________________________________ Date _____________________________________
________________________________________________________________________________________________________________
Name on Card Account # Expiration Date Credit Card Security Code (CCSC)
Member’s Signature ________________________________________________________ Date _____________________________________
California School Employees Association APPLICATION FOR RETIREE UNIT/COUNCIL MEMbERShIP
California School Employees Association APPLICATION FOR RETIREE UNIT/COUNCIL MEMbERShIP
1064_0913
1064_FM_12
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.
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.
• money saving discounts
• voluntary insurances
• free $5,000 accidental death and dismemberment coverage
• free legal advice program
• assistance with CalPERS and Social Security issues
• Union Plus (AFL-CIO) benefits
• representation before the CalPERS Board and the Legislature
• publications to keep you informed mailed regularly to your home
• valuable information about state and national retiree issues
• a nationwide network of other retirees
Here’s what you get
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AFL-CIO
California SchoolEmployees Association