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CalPERS
Retirement Benefits
CalPERS
Full-time appointments that exceed six
months and half-time appointments averaging 20 hours per week
for one year or longer require membership in the California
Public Employees Retirement System (CalPERS). Chancellor's
Office employees who are members of the CalPERS system are
in the "State Miscellaneous, First Tier" plan.
Employees
excluded from CalPERS membership are covered by the
CSU
Part Time Retirement Plan.
CalPERS
Retirement Contributions
- Employees
contribute 5 percent of gross monthly income in excess of
$513.00 (Gross Income - $513 x 5%).
- The
contribution is not subject to federal and state taxes.
- The
CSU also contributes to CalPERS.
CalPERS
Retirement Benefits
- The
plan is a defined benefit plan with retirement benefits
calculated based on age at retirement, years of service
and compensation.
- Plan
vesting is at five years of PERS credited service.
- Employees
are eligible to retire and receive a monthly pension benefit
when they are at least age 50 and have a minimum of five
years of CalPERS-credited service.
- The
benefit formula is called "2% at Age 55." Employees
can estimate their retirement benefit by using the CalPERS
Table (.pdf)
1.
To
determine years of service, employees should refer to
their CalPERS member statement and add any planned future
service.
2. To determine age, use age at expected date of retirement.
3. The percentage derived from the table is multiplied
by "final compensation", which is the average
monthly pay for the last consecutive 12 months of employment,
or another consecutive 12-month period when average
monthly pay was higher.
4. Any unused sick leave is converted to additional
service credit if the employee retires within 120 days
of separation from employment. Eight hours of sick leave
equals one day (.004 of a year of service). It takes
250 days of sick leave to receive one year of service
credit (.004 x 250 = 1 year).
5. CSU retiree medical and dental benefits are available
to employees (and their eligible dependents) who retire
within 120 days from the date of separation from employment.
Applying
for CalPERS Service Retirement
Employees
should begin their retirement planning at least one year before
their retirement date. However, they should not submit their
application to CalPERS sooner than 90 days prior to their
retirement date. Completed applications should be returned
to the CalPERS Regional Office closest to the employee.
Application
Resources: Regional
Offices | Calculator
Navigation is: For Members » On Line Services Calculators
and Tools » Create a Retirement Planning Estimate Social
Security
As a member of CalPERS, employees also participate in Social
Security.
- Social
Security and Medicare taxes are withheld from your paycheck.
- 2004
withholding rates are 6.20 percent for Social Security and
1.45 percent for Medicare.
- Social
Security maximum taxable earnings is $87,900, effective
January 1, 2004.
- There
is no limit for Medicare.
Social
Security Resources
Other
Retirement Resources
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Financial
Planning
