Frequently asked questions about retirement
Want to know when you are eligible to retire? Wondering what formula is used to calculate your retirement benefit? These are among the most common questions classified employees ask. Here are some answers:
When am I eligible to retire?
Generally, CalPERS members are eligible to retire at age 50 with a minimum service credit of five years. Part-time employees may be eligible with less than five years total service credit if they have contributed for five years or more.
How is my retirement calculated?
For classified employees, there are three factors used to calculate retirement: age at retirement, years of service credit and final compensation. Final compensation is the full time pay rate averaged over 12 consecutive months.
Is there any way I can increase my retirement?
If you worked as a substitute employee or in a part-time position (less than four hours a day) before you began contributing to CalPERS, you can purchase service credit for that time. You can also redeposit any funds you may have withdrawn upon leaving a previous CalPERS position. You may also add service credit for qualifying military time served prior to your school employment. A new law (AB 719) allows you to purchase up to five additional years of service credit (You must be vested in CalPERS and an active CalPERS member as of January 1, 2004). Arrangements for purchasing additional service credit must be made prior to retirement, but you can retire before you have completed payment for the service.
How do I know if I have the right amount of service credit?
If you work 1,720 hours in a fiscal year (July 1 through June 30), you will earn one year of service credit. If you work less than 1,720 hours, you will receive a reduced amount of service credit. Be sure to check your service credit on your annual member statement that is mailed to your home each fall.
How do I apply for retirement?
Contact CalPERS to request a retirement application about four months before retirement. In the application booklet you will find a “request for an estimate” form. Send it to CalPERS immediately to learn how much retirement you will receive and what changes in your retirement income will be made by selecting various options.
What information is needed on the retirement application, and when should I send it to CalPERS?
Once you have selected a retirement date you must also choose an option. Be sure you understand the options because you cannot generally change options after retirement. You must have your employer certify any unused sick leave you have. Send your application to CalPERS no more than 90 days before your retirement date.
How long will I receive monthly checks from CalPERS after I retire?
CalPERS retirement is a guaranteed lifetime income regardless of how many years you live. Generally, you will receive an amount equal to what you contributed plus interest in the first three to five years after retirement, but the checks never stop.
Can my spouse continue to receive my retirement upon my death?
There is a “survivor continuance” feature of CalPERS paid for by the employer. This guarantees a spouse a continuing lifetime income of at least one fourth of a retiree’s monthly income. There are several other options that allow a retiree to provide a larger continuing income to a spouse or other designated beneficiary.
Am I eligible for health benefits after retirement?
Contact your district or refer to your employee contract to learn if your district offers health benefits after retirement. You are not eligible to participate in the CalPERS health benefit program unless your district insures active employees with CalPERS-provided health care.
Can I work and still receive my retirement checks?
You can work for up to 960 hours per year in a CalPERS covered agency while receiving your retirement. There is no limit to how much you work or how much you earn if working outside a CalPERS agency.
Do I get my full Social Security benefit along with my CalPERS income?
Yes. If you have always contributed to both CalPERS and Social Security you will receive both. There will be no reduction in your Social Security benefits because you receive CalPERS retirement.
When do I become eligible for Social Security?
You may begin to draw Social Security as early as age 62. Full retirement age for Social Security depends on your birth date if born in 1938 or later. If you draw Social Security before your full retirement age you will receive a reduced amount.
Can I draw Social Security if I am employed?
Yes. There is a limit to how much you can earn if you are drawing Social Security before you reach full retirement age. There is no limit to how much you can earn once you have reached full retirement age.
How can I contact CalPERS? Are there any toll-free numbers?
Check out the CalPERS Web site at http://www.calpers.ca.gov/. You can download forms or request forms or information about service credit, retirement, death benefits, etc. by calling (888) CalPERS (225-7377). For information about the Long Term Care Program, call (800) 338-2244. The Member Home Loan Program number is (800) 874-7377.
If you have questions about any of the above information, attend a CSEA Pre-Retirement Seminar or you may also call CSEA Member Benefits Coordinator Nadine Franklin at (800) 632-2128 ext. 1205. She works closely with the CalPERS staff to ensure that classified employees are informed about their retirement benefits.