Benefits Administration Manual - Partial Service Retirement
1701. General Information
The Partial Service Retirement Program (PSRP) allows certain employees to reduce their work time by at least 20 percent, but not more than 60 percent. In other words, you must work at least 40 percent of full time, but not more than 80 percent. The California Department of Human Resources (CalHR) has the administrative responsibility for the PSRP; however, each appointing power has the discretion to consider and approve requests for employee participation in PSRP to the extent that necessary work at the department will continue to be performed. Refer to PML 99-015 for further information.
Government Code 19996.30
1702. Eligibility Criteria
Full time State miscellaneous or industrial employees are eligible to request participation if they meet one of the following:
- Credited with at least 20 years of State service and are in either:
Have the required years of service with the necessary attained age for retirement under the First Tier or the Second Tier and the sum of his/her age, when added to his/her service, equals or exceeds 65 years. To qualify under this pattern, the employee must meet the minimum age and service credit requirements under the applicable retirement plan. Under the First Tier retirement plan, the minimum age is 55 and the minimum service credit is 10 or more years. Under the Second Tier retirement plan, the minimum age is 65 and the minimum service credit is 10 years. (For example, an age 60 employee with ten years of service would qualify under this pattern; however an age 45 employees with 20 years service would not qualify).
- In the first Tier retirement plan with an attained age of 55 years; or
- In the Second Tier retirement plan with an attained age of 65 years.
Employees are not eligible to participate if:
- He/she is employed by the University of California.
- He/she is classified as State Safety or patrol members.
1703. Change in Fractional Time Base
The following are restrictions to changes in time base and must be approved by the appointing power:
- A fractional time base can be further reduced once each fiscal year.
- A fractional time base can be increased once each five years.
- Employees who receive departmental approval to voluntarily return to full time are ineligible to participate in PSRP for five years. Participants can be require to return to full time employment by the appointing power only if a state of emergency is declared pursuant to Government Code (GC) Section 8558 that affects the area of the State in which the employee works.
1704. Employee Benefits
Employees participating in PSRP are not considered "retired" until they elect full retirement. Therefore, benefits are earned in the following manner:
- Health, Dental and Vision Benefits: All participants, regardless of fractional time base are entitled to the same health, dental, and vision benefits as are provided by law for employees under the same circumstances who are employed full time.
- FlexElect Benefits: All participants, regardless of fractional time base are eligible to participate in the FlexElect cafeteria benefits program as provided by law for employees under the same circumstance who are employed full time.
- Holidays (includes Personal Holiday):
- Compensation is the proportionate amount of the workday based on time base. For example: a half-time employee would receive four hours compensation for each holiday in the pay period.
- Holiday credit for holidays falling on non-work days is credited as Holiday Credit hours; Leave Credits must be supplemented for holidays falling on an eight-hour workday.
- Life Insurance: The life insurance benefit is provided to employees who are members of the Public Employees' Retirement System (CalPERS) regardless of time base.
- Industrial Disability Leave (IDL): Participants are eligible for IDL regardless of their fractional time base.
- Nonindustrial Disability Leave (NDI): Participants are eligible for NDI regardless of their fractional time base.
- Merit and Special In-Grade Salary Adjustments (MSA & SISA): Participants are eligible to receive a prorated amount of the MSA or SISA after completion of the required 6 or 12 months of continuous service.
- Sick Leave: Sick leave is credited on a prorated basis on the first day of the monthly pay period following completion of a qualifying month; for example, a half-time employee receives four hours sick leave credit each month.
- Retirement Contributions: Employees coordinated with Social Security will continue to pay 5 percent of their total monthly salary in excess of $513.00 per month Employees who are not coordinated with Social Security will continue to pay 6 percent of their total monthly salary in excess of $317.00 per month.
- Service Retirement Credits: Service credits are accumulated until they equal one month of full-time service; for example, employees working half-time (50 percent) must work two months to earn one month of full-time service.
- Vacation: Vacation is credited on a prorated basis on the first day of the monthly pay period following a qualifying pay period. For example, a half-time employee receives half of the hours of credit allowed per vacation group.
Where provisions of this law are in conflict with the provisions of a Memorandum of Understanding (MOU) reached pursuant to GC Section 3517.5, the MOU shall be controlling.
1705. Method of Payment
Participants will receive two warrants; one warrant represents the retirement allowance and is issued from CalPERS. Retirement allowances are recalculated only when the employee has a change in time base or applies for service retirement.
The second warrant represents the corresponding portion of the full-time monthly rate for the employee's classification; participants are taxed on the earned income portion of the fractional time base; any taxes and all payroll deductions will be taken from this warrant. It is the employee's responsibility to ensure there is enough net income to cover any deductions.
1706. Employee Status
- Extension of probationary periods that may be required because of the reduction of work time feature must comply with State Personnel Board Rule 321.
- Order of Layoff - participants cannot routinely be subject to layoff ahead of full-time employees; however, they are subject to the same seniority and other layoff considerations as full-time employees in determining the order of layoff.
- Promotional Opportunities - Employees may compete in promotional examinations for which they qualify; however, promotional opportunities could be affected if employees limit themselves to part-time eligibility in the exam
- Earned Income Credit - Employees in this program that reduce their gross income enough to qualify for Earned Income Credit should contact the State Controller's Office.
The PSRP application form (CalHR-062) can be obtained at the departmental personnel offices or from the CalHR web site
To ensure timely processing, employees must submit the completed form to CalPERS at least 60 days before their effective date of partial retirement. The effective date must be the same date of the employee's date of work time reduction and can be the first day of any pay period.
Departmental approval is required and when corresponding with CalPERS, be sure to include your daytime telephone and social security number.