CalPERS Retirement Benefits
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 current benefit formula is called "2% at Age 62." Employees can estimate their retirement benefit by using the Retirement Calculation Formula.
- To determine years of service, employees should refer to their CalPERS member statement and add any planned future service.
- To determine age, use age at expected date of retirement
- 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.
- 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).
- 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.
As a member of CalPERS, employees also participate in SocialSecurity.
- 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
Social Security FAQ
This official site includes questions and answers about Social Security benefits.
- Social Security Administration (SSA) website
Other Retirement Resources
CalPERS Official Retirement Website
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