Retirement - CalHR

​Retirement Benefits

  Savings Plus Program

- Voluntary Retirement Programs –

401 (k) Thrift Plan and 457 Deferred Compensation Plan

Employee Designation: Manager, Supervisor, Confidential, and Excluded

Eligible State employees may voluntarily enroll in the Savings Plus Program. The program offers a 401(k) and a 457 plan. Enrolled employees contribute to their account via pre-tax and/or Roth payroll deductions, which are invested according to the employee's choices among the options Savings Plus offers.

 

- Mandatory Retirement Programs -

Alternate Retirement Program

Employee Designation:  Manager, Supervisor, Confidential, and Excluded

Note:  This plan is closed to new employees first hired on or after July 1, 2013

An employee who initially becomes CalPERS eligible on or after August 11, 2004 through June 30, 2013 and placed in a State miscellaneous or industrial CalPERS retirement category is automatically enrolled in the Alternate Retirement Program (ARP) for 24 months. During the 24-month period, the monthly contribution deducted from their pay check is deposited into their ARP account. Employees do not accrue retirement service credit with CalPERS during the 24-month period, even though they are considered CalPERS members. After completion of the 24-month period, their monthly contribution stops going into the ARP account and is deposited into CalPERS. The employee then begins accruing retirement service credit with CalPERS. ARP participants may elect one of the following options between the 47th - 49th months from their initial enrollment into ARP.

 

  • Transfer all their ARP funds to CalPERS in exchange for retirement service credit for the time they worked while contributing to their ARP account.
  • Request a lump sum distribution from their ARP account, which may be subject to tax penalties for early withdrawal.
  • Transfer all their ARP funds to a Savings Plus 401(k) account (if eligible).
 

 If no election is made by the due date, the ARP funds will either automatically transfer to a Savings Plus 401(k) account (if eligible) or the funds will remain in the ARP account and a monthly administrative fee will be charged to the account until the participant closes the account.

  

Part-time, Seasonal, and Temporary Employees Retirement Program (PST)

Employee Designation:  Manager, Supervisor, Confidential, and Excluded

Employees not covered by Social Security who are excluded from CalPERS membership due to their time base or length of appointment are covered under the PST Program administered by the Savings Plus Program at CalHR. A covered employee contributes 7.5% of salary to the program; this money is invested in a fund selected by Savings Plus.

 
For additional information about Savings Plus:

 
Web site:  www.sppforu.com
 
Customer service: (855) 616-4776 (say “representative” to speak with a service center representative M-F, 7:00 a.m. - 7:00 p.m. PT.)
Savings Plus Customer Service Lobby
1810 16th Street
North Building
Sacramento, CA 95811

  

CalPERS

CalPERS Retirement (Miscellaneous Member Formula)

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Executive Order S-01-10
CalPERS Retirement (Miscellaneous Members, First Tier Plan):
  • Effective January 1, 2013, all newly hired state employees new to CalPERS membership (with no reciprocity) will have retirement benefits based on 2% at age 62 formula with final compensation based on 3-years of highest pensionable salary.
  • Effective January 15, 2011 and prior to January 1, 2013, all newly hired state employees (with no prior state service) will have retirement benefits based on 2% at age 60 formula with final compensation based on 3-years of highest salary.
  • Employees employed by the state prior to January 15, 2011 will have retirement benefits based on 2% at age 55 formula with final compensation based on 1-year or 3-years of highest salary dependent on bargaining contracts.
  • Early retirement with reduced benefits is an option at age 50 or 52 under the 2% at age 62 formula, provided the member has five or more years of state service.
  • Miscellaneous members in the First Tier plan contribute 8% of monthly compensation in excess of $513 if the member participates in Social Security. If the member does not participate in Social Security, the member will contribute 9% of monthly compensation in excess of $317 towards CalPERS retirement.
  

Conversion of Sick Leave Credits Upon Retirement

Employee Designation: Manager, Supervisor, Confidential, and Excluded
References: Govt. Code 20963

Upon retirement, employees may convert their unused sick leave to service credit. Divide the sick leave balance by 2,000 to calculate the number of years of additional service credit.

 

Death Benefits

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Govt. Code 21490, et al
  
Death Benefit Payable Prior to Qualifying for Early Retirement (less than 20 years of service)
  • A $5,000 lump sum and six months of salary will be paid to the eligible beneficiary plus the return of all member contributions and interest, if any.
  • 1959 survivor benefit may be paid for members who were not covered by social security.
 
Death Benefit Payable to Employees Eligible for Retirement on Date of Death (20 years of service)
  • An eligible beneficiary will receive a $5,000 lump sum payment plus a monthly allowance. For more details, employees should contact their personnel office for a copy of the CalPERS State Miscellaneous Member booklet, or contact their local CalPERS office.
 
Limited Death Benefit
  • For employees who have been separated from employment four or more months without retiring, a refund of the member's contribution and interest.
 
Death Benefit Payable After Retirement
  • CalPERS pays a $2,000 lump sum benefit and a continuing monthly retirement allowance to the eligible beneficiary of a retired State employee based on the option selected by the employee at the time of retirement.
 
120 Day Death Benefit
  • AB 1639, Chapter 926, 1999 - The department will pay the employer's and employee's contributions for health, dental, and vision benefits for a covered employee's spouse, domestic partner and/or other covered dependents upon the employee's death. The coverage period will be for 120 days. The department is permitted to bill covered family members to recover the employee's share.
 

Disability Retirement

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Govt. Codes 21150, et al

Employees who become disabled and can no longer perform their duties must meet various requirements to qualify for disability retirement benefits. These benefits will depend on the employee's retirement category and may have a minimum service requirement. The employee's personnel office can provide CalPERS publications that describe the requirements and benefits.

 

Health Benefits in Retirement

Employee Designation: Manager, Supervisor, Confidential, and Excluded
State employees must retire within 120 days after separation to be eligible for health benefits in retirement. If an employee retires within 30 days of separating from State service, their health benefits continue at retirement automatically. If an employee retires 31 to 120 days separating from State service, they may re-enroll in health benefits within 60 days of their retirement date or wait until Open Enrollment.
 
Employees first hired after January 1, 1985, must have completed five years of service in order to receive 50% of the employer contribution toward health benefits.  The percentage increases on a pro-rata basis up to 100% at 10 years of service.  For employees who first become CalPERS members after January 1, 1990, ten years of State service at retirement is required in order to receive 50% of the employer's contribution toward health benefits.  This rate increases on a pro-rata basis and reaches 100% at 20 years of service.
 
Exempt employees may qualify for health benefits in retirement under certain criteria outlined in Government Code 22816.7.

 

  

Partial Service Retirement

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Govt. Codes 19996.30 - 19996.40 and 21117

Employees who meet all the following criteria may request to participate in reduced work time for partial service retirement:

1) State miscellaneous or industrial members of CalPERS working standard hours on a full-time basis,

2) reach normal retirement age (55, 60, 62) or older for First Tier members and age 65, 67, or older for Second Tier members, and

3) be eligible for retirement. With their supervisor's approval, employees may reduce their work schedule by 20% to 60% and receive a partial retirement allowance and

4) additional service credit.

 

Employees who participate in the Partial Service Retirement Program are considered "active" employees eligible for the same benefits allowed for full-time permanent employees, although some benefits are provided on a pro-rated basis.  Distributions received by active members prior to age 59½ from a qualified
retirement plan such as CalPERS are considered “early” distributions under Section 72(t) of the Internal Revenue Code.  There may be additional tax requirements so please seek tax advice.

 

Patrol, Peace Officer/Firefighter, and Safety Member

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Govt. Code 21150, et al

Employees in law enforcement positions and workers at certain State institutions are covered by different CalPERS retirement benefit formulas. These employees are not covered by Social Security. Employees in these groups should contact their personnel office for CalPERS pamphlets that explain their retirement benefits and contribution requirements.

   

Purchase of Retirement Service Credit

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: Govt. Code 20907, et al

 Employees may restore service credit (by redeposit of previously withdrawn contributions and interest) or purchase credit for: (1) time when employee was on certain approved leaves of absence; (2) military duty prior to State employment; and (3) public employment prior to becoming eligible for CalPERS membership.  Second Tier members may also be eligible to convert their service to First Tier. To pay for these credit actions, employees may transfer or rollover funds from qualified 401(a), 401(k), 403(a), 403(b), and 457 plans and traditional IRAs. Savings Plus Program participants may transfer their 401(k) and/or 457 funds to CalPERS for this purpose.

 
 For additional information, contact:
  
California Public Employees' Retirement System
Member Services Division
P. O. Box 942704
Sacramento, CA 94229-2704
(888) 225-7377
  

Retirement Benefit Limits Per Internal Revenue Code

Employee Designation: Manager, Supervisor, Confidential, and Excluded
Reference: IRS 415(b)

 CalPERS administers the employer-sponsored retirement program for State employees. CalPERS is a qualified retirement plan under the Federal Internal Revenue Code, and this allows employee contributions to be made on a pre-tax basis. To continue as a qualified plan, CalPERS is required to ensure that the retirement benefits for employees are limited to the amounts provided annually by the IRS. CalPERS will keep members informed during their employment as to the impact of these limits on their future retirement benefits. If benefits must be limited, CalPERS will enroll members in a benefit-replacement plan.

 

 


Updated 5/21/2012