Docstoc

CalPERS State Reference Guide - CalPERS On-Line - State of

Document Sample
CalPERS State Reference Guide - CalPERS On-Line - State of Powered By Docstoc
					STATE REFERENCE GUIDE
 CALIFORNIA PUBLIC EMPLOYEES’
      RETIREMENT SYSTEM
THIS PAGE INTENTIONALLY LEFT BLANK
                                                      TABLE OF CONTENTS


Introduction ................................................................................................................................................. 5

General Membership Information .............................................................................................................. 7

            CalPERS Membership Eligibility .................................................................................................... 11

            Public Employees’ Pension Reform Act of 2013 (PEPRA) Definition of a New Member .............. 11

            First-Tier vs. Second-Tier............................................................................................................... 15

            Account Code Overview................................................................................................................. 17

            The Alternate Retirement Program (ARP) (Civil Service Only) ..................................................... 21

            Determining Membership Eligibility ................................................................................................ 24

            Positions Excluded by Retirement Law (PERL) from CalPERS Coverage. .................................. 25

            Determining Retirement Benefits ................................................................................................... 27

            “Optional” Members of CalPERS ................................................................................................... 29

            CalPERS or CalSTRS? .................................................................................................................. 32

            Overtime Positions ......................................................................................................................... 36

            Updating Employee Demographic Information .............................................................................. 37

            Reciprocity and Similar Benefits .................................................................................................... 39

            Reciprocity Requirements .............................................................................................................. 40

            Rights and Benefits with Full Reciprocity ....................................................................................... 41

            CalPERS Benefits for Non-Qualifying Individuals .......................................................................... 42

            CalPERS Benefits Arising from Movement to Reciprocal
            and Certain Non-Reciprocal Public Retirement Systems .............................................................. 43

            How to Notify CalPERS when the Member Changes Retirement Systems .................................. 44

            Service Credit Purchase Options ................................................................................................... 45

CSU-Only Membership ............................................................................................................................. 51

            The California State University ...................................................................................................... 53

            Membership Chart.......................................................................................................................... 55




                                                                               1
Pay Rate and Service Credit .................................................................................................................... 61

            Reportable/Non-Reportable Compensation ................................................................................... 63

            Service Credit ................................................................................................................................. 67

Benefits Procedures ................................................................................................................................. 69

            Beneficiary Designation Form ........................................................................................................ 73

            Reporting an Imminent Death or Terminal Illness/ Power of Attorney ........................................... 74

            Death of an Active Member ........................................................................................................... 75

            Information for Family of Deceased ............................................................................................... 77

            Retirement — General ................................................................................................................... 79

            Service Retirement......................................................................................................................... 82

            Deductions after Retirement .......................................................................................................... 84

            Disability Retirement or Industrial Disability Retirement ................................................................ 86

            Employment of a Retiree................................................................................................................ 93

            Reinstatement from Retirement ..................................................................................................... 99

            Beneficiary Designation (after Retirement) .................................................................................. 102

            Death of a Retiree ........................................................................................................................ 106

            Completing the Tax Withholding Election for Death Benefits ...................................................... 108

            Tax and Income Reporting Information........................................................................................ 109

Web Services and Publications ............................................................................................................. 112

            CalPERS Web Services ............................................................................................................... 112

            Ordering Forms & Publications .................................................................................................... 114

            List of CalPERS Publications ....................................................................................................... 115

Education and Other Resources ........................................................................................................... 117

            CalPERS Education and Events .................................................................................................. 119

            California Employers’ Retiree Benefit Trust (CERBT) Fund ........................................................ 121

            CalPERS Health Benefits (PEMHCA).......................................................................................... 123

            CalPERS Long-Term Care .......................................................................................................... 124

Appendix .................................................................................................................................................. 125


                                                                              2
                                                       INTRODUCTION
                                                     TABLE OF CONTENTS

Updates to this Guide .................................................................................................................................... 5

Guide Coordinator Responsibilities ............................................................................................................... 5

Confidentiality of Member Data ..................................................................................................................... 5

Headquarters Office Location ....................................................................................................................... 5

CalPERS Customer Contact Center ............................................................................................................. 5

CalPERS Regional Offices............................................................................................................................ 6

About Service Retirement ............................................................................................................................. 6


The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may
be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in
effect, not this publication, controls the application of the Public Employees' Retirement Law. It is the
reader's responsibility to independently verify the accuracy of the information contained in this publication
before engaging in a course of action.




                                                                             3
THIS PAGE INTENTIONALLY LEFT BLANK




                                     4
                                      INTRODUCTION
This Guide is designed to help you in your          CONFIDENTIALITY OF MEMBER DATA
preparation of information for the California
Public Employees’ Retirement System. The            For the member’s protection, each
Guide is divided into seven sections:               employee involved with CalPERS reporting
                                                    should be aware of Government Code
•   General Membership Information                  section 20230, which states: “Data filed by
•   CSU-Only Membership                             any member or beneficiary with the Board is
•   Pay Rate and Service Credit                     confidential, and no individual record shall
•   Benefits Procedures                             be divulged by any official or employee
•   Web Services and Publications                   having access to it to any person other than
•   Education and Other Resources                   the member to whom the information relates
•   Appendix                                        or his authorized representative, the
                                                    contracting agency or school district by
These seven sections cover the main areas           which he is employed, any state department
of CalPERS operation. Subjects covered              or agency, or the university. Such
within each section are outlined in the table       information shall be used by the Board for
of contents. Forms unavailable in the               the sole purpose of carrying into effect the
Appendix are available in the Forms &               provisions of this part. Any information which
Publication Center on CalPERS On-Line for           is requested for retirement purposes by any
your reference.                                     public agency shall be treated as
                                                    confidential by such agency”.
We encourage you to share this information
with agency representatives who are                 HEADQUARTERS OFFICE LOCATION
responsible for enrolling employees into
                                                    California Public Employees’ Retirement
CalPERS membership, determining the
                                                    System
correct account code to use, or conveying
                                                    400 Q Street
benefit information to staff.
                                                    Sacramento, CA 95811
                                                    (916) 795-3000
This Guide can be accessed in the Forms &
Publication Center on CalPERS On-Line at
                                                    TDD (Speech and Hearing Impaired)
www.calpers.ca.gov.
                                                    (877) 249-7442
                                                    California Relay Service –
UPDATES TO THIS GUIDE                               Telecommunications Device for the Deaf
Since this Guide is being distributed via           (800) 735-2929
CalPERS On-Line only, updates will be
provided in the same way. Each section will         CALPERS CUSTOMER CONTACT CENTER
have a revision date to ensure you are using        888 CalPERS (or 888-225-7377)
the most current information available.
Please check the State Reference Guide              The CalPERS Customer Contact Center
page on CalPERS On-Line for the list of             acts as a single point of contact for
revision dates. Updates will be announced           employers, and members.
via CalPERS Employer Bulletins.
                                                    EMPLOYER INFORMATION
GUIDE COORDINATOR RESPONSIBILITIES                  •   Actuarial services
Use the Guide at the CalPERS Website as             •   CalPERS Education Center enrollment
your resource to answer questions. Please           •   Communication services
call the CalPERS Customer Contact Center            •   Compensation review
at 888 CalPERS (or 888-225-7377) if you             •   Constituent services
need additional assistance.                         •   Emergency retirements
                                                    •   Employer contracts
                                                    •   Employer education


                                                5
•   Employer statements                          CALPERS REGIONAL OFFICES
•   Health enrollment transactions
•   Health plan eligibility                      AREAS OF SERVICE
•   Initiate employer contract amendments
•   Payroll discrepancies                        • Public information counters
•   Payroll file transfer                        • Retirement counseling
•   Payroll reporting information                • Order retirement estimates
•   Process death reports
•   Public agency health billing                 CalPERS Regional Office locations and
•   Reciprocity information                      hours can be found online at
•   Requests for forms & publications            www.calpers.ca.gov.
•   Retirement application status
•   Retirement eligibility                       ABOUT SERVICE RETIREMENT
•   Social Security Number discrepancies
•   Update employer contacts                     Service retirement is a lifetime benefit that is
                                                 derived from key employment information
MEMBER INFORMATION                               you provide. To be eligible for a service
                                                 retirement, in most cases your employee
•   Address changes
                                                 must be at least age 50 and have five years
•   Changing beneficiaries                       of service credit.
•   Community property information
•   Cost-of-living adjustments (COLAs)           When an employee retires, their lifetime
•   Direct deposit of monthly benefit            retirement benefit is calculated using a
    payment                                      formula that includes years of service credit,
•   Monthly retirement warrants                  age at retirement, and final compensation.
•   Post-retirement death notifications          Final compensation is their highest average
•   Replacement of lost or stolen checks         full-time monthly pay rate for a 1-year or 3-
•   Retirement eligibility and payment           year period based on the employer contract
•   Survivor and beneficiary information         or collective bargaining unit agreement. It is
•   Tax withholding changes                      critical that service credit and final
•   Working after retirement                     compensation be reported correctly to
•   Health plan eligibility and enrollment       ensure the employee retires without delay
•   Annual Member Statements                     and receives the correct retirement
•   Contribution adjustments                     allowance.
•   First-tier and second-tier benefits
                                                 While there are many variables in figuring
•   Pension compensation review
                                                 your service retirement benefits, the basic
•   Pre-retirement death benefits
                                                 formula is:
•   Reciprocity refund information
•   Service credit information                             Service Credit (years)
•   Service or disability retirement                                  x
•   Emergency retirements                             Benefit Factor (percent per year)
                                                                      x
                                                   Final Compensation (monthly, dollars)
                                                                      =
                                                     Unmodified Allowance (pension)

                                                 A member’s retirement benefit formula is
                                                 based on their membership category, which
                                                 is determined by the employer, classification
                                                 (miscellaneous, safety, industrial, or peace
                                                 officer/firefighter) and specific provisions
                                                 outlined in the law.




                                             6
                                GENERAL MEMBERSHIP INFORMATION
                                      TABLE OF CONTENTS
CalPERS Membership Eligibility ............................................................................................................. 11

           Public Employees’ Pension Reform Act of 2013 (PEPRA) Definition of a New Member .............. 11

           Full-Time Employees ..................................................................................................................... 12

           Less than Full-Time Employees ..................................................................................................... 12

           When Not to Report ....................................................................................................................... 13

           Failure to Timely Enroll a Member ................................................................................................. 14

           What are Arrears? .......................................................................................................................... 14

           Part-Time Seasonal Employees .................................................................................................... 14

First-Tier vs. Second-Tier ......................................................................................................................... 15

Account Code Overview ........................................................................................................................... 17

Alternate Retirement Program (ARP) ...................................................................................................... 21

Determining Membership Eligibility ........................................................................................................ 24

Positions Excluded by Retirement Law (PERL) from CalPERS Coverage .......................................... 25

           Members of Other Retirement Systems......................................................................................... 25

           Health and Welfare or Trade Rate Employment ............................................................................ 25

           Independent Contractors................................................................................................................ 25

           Elected or Appointed Officers ........................................................................................................ 25

           Student Aides in the Special Schools of the State Department of Education................................ 25

           California Conservation Corps Participants ................................................................................... 26

           Assembly Fellows, Senate Fellows, and Executive Fellows.......................................................... 26

           Inmates of State Institutions ........................................................................................................... 26

           Exclusions Applicable Only to California State University ............................................................. 26

           Student Assistants ......................................................................................................................... 26

           Summer Session/Intersession ....................................................................................................... 26

           Exclusions Applicable Only to University of California ................................................................... 26

           Extension Service .......................................................................................................................... 26

                                                                           7
Determining Retirement Benefits ............................................................................................................ 27

“Optional” Members of CalPERS ............................................................................................................ 29

           General Provisions/Instructions ..................................................................................................... 30

           Election of Optional Membership ................................................................................................... 31

           When to Complete ......................................................................................................................... 31

CalPERS or CalSTRS? .............................................................................................................................. 32

           Differences between CalPERS and CalSTRS ............................................................................... 34

           Additional Information .................................................................................................................... 34

Overtime Positions ................................................................................................................................... 36

Updating Employee Demographic Information...................................................................................... 37

           Birthdate Certification Request ...................................................................................................... 37

           When to Complete ......................................................................................................................... 37

           Instructions ..................................................................................................................................... 37

           Acceptable Documents .................................................................................................................. 37

           Appointment Change Notification for Employer (CalPERS-Initiated Form) Purpose .................... 38

           Special Instructions ........................................................................................................................ 38

           my|CalPERS Member Self-Service ............................................................................................... 38

Reciprocity and Similar Benefits ............................................................................................................. 39

           Full Reciprocity............................................................................................................................... 39

Reciprocity Requirements........................................................................................................................ 40

           Conditions for Acquiring the Benefits of Full Reciprocity ............................................................... 40

           Important Restrictions .................................................................................................................... 40

Rights and Benefits with Full Reciprocity .............................................................................................. 41

CalPERS Benefits for Non-Qualifying Individuals ................................................................................. 42

CalPERS Benefits Arising from Movement to Reciprocal
and Certain Non-Reciprocal Public Retirement Systems ..................................................................... 43

           Final Compensation ....................................................................................................................... 43

           Redeposit Rights ............................................................................................................................ 43


                                                                              8
           Refund Restriction.......................................................................................................................... 43

           Vesting ........................................................................................................................................... 43

           Disability Retirement ...................................................................................................................... 43

How to Notify CalPERS when the Member Changes Retirement Systems ......................................... 44

           JRS, JRS II, and LRS Members .................................................................................................... 44

Service Credit Purchase Options ............................................................................................................ 45

           Service Credit Cost Estimator ........................................................................................................ 45

           Redeposits ..................................................................................................................................... 46

           Service Prior to Membership .......................................................................................................... 46

           Verification of Service Prior to Membership ................................................................................... 46

           Public Service and Leaves of Absence.......................................................................................... 46

           Present Value Service Credit Purchases ....................................................................................... 47

          Additional Retirement Service Credit ............................................................................................. 47

           Peace Corps, Americorps Vista, and Americorps .......................................................................... 47

           Credit for Military Service Prior to Employment ............................................................................. 47

           Credit for Absence from Employment for Military Service ............................................................. 48

           Excluded Positions ......................................................................................................................... 48

           Payment Methods .......................................................................................................................... 48

           Inquiries .......................................................................................................................................... 49

           Cost Estimate ................................................................................................................................. 49




                                                                               9
The information provided in this publication is for your convenience and reference as a general guide
only and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS.
While CalPERS tries to include only accurate, timely and complete information in its publications,
summaries, guidelines and other advisory printed materials, sometimes information provided in printed
materials may be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances,
the law then in effect, not this publication, controls the application of the Public Employees' Retirement
Law. It is the reader's responsibility to independently verify the accuracy of the information contained in
this publication before engaging in a course of action.




                                                     10
                        CALPERS MEMBERSHIP ELIGIBILITY
If a person is currently a member of CalPERS              3. Contacting the CalPERS Customer Contact
(i.e., has contributions/service on account that             Center at 888 CalPERS (or 888-225-7377).
have not been refunded), the person cannot be
excluded from membership due to her/his time              It is recommended that an employer retain
base (e.g., working less than 20 hours per week)          documentation (e.g., Notice of Exclusion From
or appointment length (e.g., 90 days). Therefore,         CalPERS Membership Form PERS-AESD-139)
persons who are currently members of CalPERS              on which the employee indicates “Not a CalPERS
do not need to re-qualify for membership. This            member”; to demonstrate that such an inquiry was
applies even if their membership was                      made, in order to guard against possible G.C.
established through employment with another               section 20283 liability in the future. It is also
CalPERS agency, or if they are not currently              recommended that employers determine whether
working (i.e., are on inactive status) with a             the employee has any other CalPERS-covered
CalPERS-covered agency.                                   employment that could potentially place the
                                                          employee in an “overtime” situation (e.g., if the
EXCEPTION:                                                employee is working more than full-time), to avoid
State Second-Tier members who are not vested and          having to make adjustments later.
have been permanently separated for more than 6
months. Most other employees should enter                 IMMEDIATE MEMBERSHIP UPON HIRE
CalPERS membership immediately upon                       Many employees should enter CalPERS
employment (G.C. section 20281).                          membership immediately upon employment (G.C.
                                                          section 20281), namely:
NOTE:
Employees of the Department of Forestry and               •   Already a CalPERS member, unless working
Fire Protection who qualify for State Peace                   in a position excluded by law.
Officer/Firefighter membership under G.C.
Section 20392, or State Safety membership                 •   Employees hired to work full-time more than
under Section 20400, also qualify for immediate               six months.
membership, even if working less than full-time.
                                                          •   Employees working “regular, part-time
If a person has retirement contributions/service              service,” who work “at least an average of 20
credit on deposit with CalPERS, or if they have               hours a week” for one year or longer.
met the criteria for membership (e.g., have
completed 1,000 hours of service in a fiscal year)        However, there are also some employees who
but have not actually been enrolled yet, they are         must work a certain number of hours/days
by law a member of CalPERS, even if the                   (commonly referred to as “qualifying time”) before
employer has not yet reported payroll to CalPERS          they are eligible for membership, and who
on their behalf.                                          therefore should be carefully monitored, such as
                                                          the following:
Once in membership, a person remains in
membership until (1) they take a refund of                PUBLIC EMPLOYEES’ PENSION REFORM ACT OF
contributions after permanently separating from              2013 (PEPRA) DEFINITION OF A NEW
CalPERS-covered employment, or (2) they                      MEMBER
retire.
                                                          PEPRA defines a new member as any of the
You can determine whether or not a person is              following:
currently a member of CalPERS by:                         • A new hire who is brought into CalPERS
                                                               membership for the first time on or after
1. Asking the employee (be aware that some                     January 1, 2013, and who has no prior
   employees may be mistaken about this),                      membership in any California Public
                                                               Retirement System.
2. Using the Participant Inquiry function of the
                                                          • A new hire who is brought into CalPERS
   my|CalPERS system, and/or
                                                               membership for the first time on or after
                                                               January 1, 2013, and who was a member

                                                     11
                                                                           CalPERS Membership Eligibility

    with another California Public Retirement             information provided at enrollment. If your
    System prior to January 1, 2013, and is not           agency believes the enrollment is incorrect, you
    eligible for reciprocity.                             may contact CalPERS to review and correct the
•   A member who first established CalPERS                data as necessary.
    membership prior to January 1, 2013, and
    who is rehired (by a different CalPERS                NOTE:
    employer) after a break in service of greater         Each employer must store the participant details
    than six months.                                      necessary to categorize individuals as new
                                                          members or classic members in your databases.
NOTE:
All State agencies, including CSU, are treated            FULL-TIME EMPLOYEES
as a single employer under PEPRA.                         CalPERS considers full-time employment to be
Additionally, all school employers are treated as         between 34 and 60 hours per week. Employers
a single employer as well.                                generally have the ability to determine what
                                                          constitutes full-time for an employee provided that
Each employer must store the participant details          the employee works between 34 and 60 hours per
necessary to categorize individuals as new                week. However, G.C. section 20636.1 specifies
members or classic members in your databases.             that for all non-certificated school members full-
CalPERS refers to all members that do not fit             time is considered 40 hours per week. This
within the definition of a new member as “classic         means that all hours up to 40 hours per week
members”. All existing CalPERS members as of              must be reported to CalPERS for non-certificated
December 31, 2012, will retain the existing               school members at the straight time rate.
benefit levels for future service with the same
employer. Because the new member                          Persons in full-time employment whose
determination is made on an appointment-by-               appointment/employment does not fix a term of
appointment basis, classic members will be                employment longer than six months should be
tested against the “new member” definition upon           monitored; if full-time employment actually
each new appointment and, in some cases, may              continues for more than six months, membership
become “new members” for services under a                 is compulsory, and the effective date of
new appointment.                                          membership cannot be later than the first day of
                                                          the first pay period of the seventh month of
PEPRA does not require retroactive reductions             employment.
to benefits earned for prior service, even where
a member separates from service and is later              LESS THAN FULL-TIME EMPLOYEES
rehired as a new member by a new employer                 The standard to consider for the membership
and becomes subject to the applicable PEPRA               eligibility of less than full-time employees is
formula. In these cases, the member’s “classic            whether they work 1,000 hours (if paid on an
member” service will be calculated separately             hourly basis) or 125 days (if paid on a daily or per
from his or her service as a “new member”.                diem basis) in a fiscal year (July 1 through June
                                                          30). (G.C. section 20305(a)(3)(B) states that 125
my|CalPERS includes fields on the enrollment              eight-hour days equals 1,000 hours.)
page where your agency will identify if the new
hire is coming from a reciprocal agency and               Since the “overtime” provisions of section 20635
prompt you for the necessary data elements                apply only to members of CalPERS, overtime
which subject them to reciprocity. It will be             service is included in computing the 1,000 hours
extremely important that your agency properly             or 125 days.
identify the status of members at the time of hire
by providing the Member Reciprocal Self-                  Time during which the member is paid for time
Certification form (PERS-CASD-801).                       excused from working due to vacation, sick leave,
                                                          etc., is included in the 1,000 hours.
Based on the information your agency provides,
my|CalPERS will automatically determine the               CALIFORNIA STATE UNIVERSITY
proper benefit group for each member. In
addition, CalPERS will create for each employer             TEMPORARY FACULTY
a report identifying their recent enrollments and         Must work half time or more for either (1) two
the correct corresponding formula based on the            consecutive semesters, or (2) three consecutive
                                                          quarters (G.C. section 20305(a)(4)). Refer to the

                                                     12
                                                                           CalPERS Membership Eligibility

CSU-Only section for specific information to              for should be counted towards membership
membership qualification for CSU employees.               qualifications, even if the compensation would
                                                          not be reportable to CalPERS if the person was
GENERAL PRINCIPLES                                        a member (e.g. compensation for overtime
The general principles to follow to determine             hours).
when and if someone is eligible for membership,
if not excluded by contract or by law are as              For example, if an employee were called in to
                                                                                  th
follows:                                                  work 4 hours on July 4 , which is a paid 8-hour
1. Persons who are already members of                     holiday for the individual, the employee would
     CalPERS are not excluded from membership             have 12 hours counted towards their
     because they are working less than full-time.        membership qualification.
     (G.C. section 20305(a)(1))
                                                          However, if this example applied to a member,
2.   Persons enter membership upon                        then the 4 hours would be considered overtime
     appointment to a position with one of the            and not reportable to CalPERS.
     following conditions:
                                                          WHEN NOT TO REPORT
     a. The appointment/employment fixes a                A CalPERS member should not continue to be
        term of full-time, continuous                     reported in membership when:
        employment in excess of six months.
     b. CSU Temporary Faculty employee                    • The person enters a position that is
        appointed for one academic year                     excluded by law (other than due to time
        at full-time.                                       base/appointment length), or by an agency’s
     c. The position requires regular, part-time            contract.
        service for at least an average of 20             • The person enters a position eligible for
        hours per week (or its equivalent) for              optional membership and has not yet elected
        one year or longer.                                 membership. The individual must submit an
                                                            election of optional membership in order to be
3.   Persons must otherwise be monitored to                 a member in such a position, regardless of
     determine when and if they qualify for                 prior membership status. (See “Optional
     membership. Qualification for membership               Members of CalPERS” section for more
     is reached when:                                       information.)
                                                          • The person enters a position that is also in
     a. No term (length) of appointment is                  membership with another public retirement
        specified in the appointment/                       system. (See “Positions Excluded by
        employment, but full-time employment                Retirement Law (PERL) from CalPERS
        continues longer than six months.                   Coverage” section.)
     b. The person works more than 125 days               • The person is subject to an alternate retirement
        in a fiscal year if paid on a “per diem”            plan under G.C. section 20306.
        basis (i.e., “per day”). For this purpose,        • The person is legally working after retirement.
        “day” means each 8 hours of                         (The laws for post-retirement employment are
        compensated service; (e.g. a firefighter            different from the laws for membership; refer to
        working a 24-hour shift is working 3                the “Employment of a Retiree” section later for
        “days” per shift).                                  more information).
     c. The person works 1,000 hours in a fiscal
        year if paid on other than a per diem
                                                          NOTE:
        basis. Any overtime hours worked are
                                                          Multiple part-time positions should be reported,
        counted as qualifying time.
                                                          even if the sum of the hours of the positions
                                                          exceeds full-time.
In such cases, membership becomes effective
no later than the first day of the next pay period
after (a) the sixth month of full-time employment         QUALIFICATION WHEN WORKING MORE THAN
or (b) completion of 1,000 hours or 125 days in a          ONE POSITION
fiscal year.                                              These criteria above can be met by employees
                                                          who are working more than one position under
When monitoring an employee for the 1,000                 the same employer; therefore, service with all
hours, all hours the employee is compensated              positions with an employer (including both safety

                                                     13
                                                                             CalPERS Membership Eligibility

and miscellaneous positions) should be                     or failed to report earnings and contributions for
considered in determining membership                       service rendered.
qualification. For example, a person working a
permanent 10-hour a week position, and a                   Government Code Section 20283 applies if any
permanent 12-hour a week position with the                 portion of the arrears period occurred on or after
same employer, would qualify for membership                July 1, 1994. A member who qualified for
immediately, by virtue of combining the service            membership prior to July 1, 1994 is considered a
of both positions to meet the 20-hour a week               mandatory arrears case. In mandatory arrears
minimum.                                                   cases, the member is responsible for the
                                                           member contributions and the employer is
Service with different CalPERS-covered                     responsible for the employer contributions.
agencies, such as a city and a special district; or
a school district and a State agency or school             NOTE:
districts in two different counties, should not be         The administrative cost “is not a fee or penalty”
combined for membership qualification                      to the agency – rather it is a reimbursement to
purposes.                                                  CalPERS for costs associated with the process
                                                           of administrating G.C. section 20283.
If an employee becomes a CalPERS member
prior to January 1, 2013 and returns to work with          DETERMINING IF A PART-TIME SEASONAL
the same employer, they are considered a
classic member under PEPRA. Their original                    EMPLOYEE IS ELIGIBLE FOR MEMBERSHIP
membership date would apply. If they return to             1. Check participant inquiry in my|CalPERS to
work with a different CalPERS employer and                    determine if the employee is already a
their break in service between employers is                   CalPERS member.
greater than six months, then they would be                2. Look for PIMS/CSUC transactions to
considered a new PEPRA member.                                determine if employee is already a CalPERS
                                                              member. If the employee is already a
                                                              member of CalPERS, that employee should
FAILURE TO TIMELY ENROLL MEMBER
                                                              be immediately reported to CalPERS.
It is the employer’s responsibility to determine
                                                           3. Look for account codes on an employee’s
if its employees are eligible to participate in
                                                              record, which indicate that the employee
CalPERS. If an employer has failed to enroll an
                                                              has previously worked for a State agency or
eligible employee into CalPERS membership
                                                              California State University.
within 90 days of qualifying, when the employer
                                                           4. Ask newly hired employees if they are a
knows or can reasonably be expected to have
                                                              member of CalPERS and document it in
known of that eligibility, the employer shall be
                                                              writing. A Public Agency or County School
responsible for arrears of the member
                                                              could have formerly employed some
contributions and a $500 administrative cost per
                                                              members. Document on the AESD-139-S
member.
                                                              form.
                                                           5. Monitor all compensated hours worked. If
WHAT ARE ARREARS?                                             the employee reaches 1,000 hours in a
The employer is responsible to know the basic                 fiscal year, membership must be established
eligibility rules and when to enroll their                    and reported to CalPERS.
employees into membership in CalPERS.
Government Code Section 20283 states that                  NOTICE OF EXCLUSION FROM
any employer that fails to enroll an employee
into membership within 90 days of eligibility shall           CALPERS MEMBERSHIP
be required to pay all the arrears contributions           For employees who do not qualify for CalPERS
(both employer and member) and a $500.00                   membership, the “Notice of Exclusion from
administrative fee per member to the System.               CalPERS Membership” (PERS-AESD-139S)
                                                           should be completed. The completed form
Arrears are the employee contributions due for             should be given to the employee in order to
earnings that have not been previously reported.           inform them of the specific reason for their
Payment of arrears is mandatory and interest is            exclusion and to fulfill the employer’s
not charged on the amount owed. An account                 responsibility of notification. Do NOT send
can be in arrears because either an employer               copies of this form to CalPERS; however, a copy
failed to enroll the employee into membership,             should be retained for the employee’s records.


                                                      14
                                                         FIRST-TIER VS. SECOND-TIER
When determining if an employee should be placed in first or second tier, you will need to find out if the miscellaneous or industrial employee is a
previous member of CalPERS (do they have service and/or funds on deposit from another contracting Public Agency, County School or State agency
that is under CalPERS).

If no, refer to “CalPERS Membership Eligibility” in the “Civil Service/CSU Membership” section to determine when to bring the employee into
membership. Once the employee qualifies for CalPERS membership, determine if the employee contributes to CalPERS or ARP. If it is determined the
employee contributes to ARP, place them in the ARP account code. If the employee is eligible to contribute to CalPERS (either on appointment date or
completion of the 24 months in ARP), place the employee into First-Tier and provide the employee with the “State Miscellaneous and Industrial
Members Retirement Benefit Election Package” booklet (PERS-PUB-52).

If yes, see chart below.

                                                       All State Second-Tier Service only (no State First-Tier, Public Agency or County School Service)
      All First-Tier Service   Mixed First- and
      (Public Agency,          Second-Tier Service     Permanent               Permanent                Permanent                Permanent
      County School or                                 Separation is Less      Separation is 91 days    Separation is over Six   Separation is over Six
      State)                                           than 90 days            to Six Months            Months and Member        Months and Member
                                                                                                        has less than 10         has over 10 years of
                                                                                                        years of Second-Tier     Second-Tier Service
                                                                                                        Service
      • The employee is        • The employee is       • The employee is       • The employee is        • The employee           • The employee is
        brought into             brought into            brought into            brought into              needs to re-qualify     brought into
        CalPERS                  CalPERS                 CalPERS                 CalPERS                   for CalPERS             CalPERS
        membership               membership              membership              membership                membership.             membership
        immediately.             immediately.            immediately.            immediately.           • Upon meeting             immediately.
      • Place the              • If break in service   • Place the             • Place the                 qualifications,       • Place the
        employee into            is more than 90         employee into           employee into             bring the               employee into
        First-Tier.              days, place the         Second-Tier.            First-Tier.               employee into           First-Tier.
      • Provide the              employee into                                 • Provide the               CalPERS               • Provide the
        employee with the        First-Tier.                                     employee with the         membership.             employee with the
        PUB-52.                • Provide the                                     PUB-52.                • Place the                PUB-52.
                                 employee with the                                                         employee into
                                 PUB-52.                                                                   First-Tier.
                               • If break is less                                                       • Provide the
                                 than 90 days, see                                                         employee with the
                                 1, 2 or 3 below.                                                          PUB-52.




                                                                                 15
Mixed First- and Second-Tier Service: (break in service is less than 90 days)

1. If the member’s last appointment was State Second-Tier, place the member in State Second-Tier and do not provide the PUB-52.

2. If the member’s last appointment was State Safety, POFF or CHP Patrol and the member has elected to convert their past State Second-Tier
   service to First-Tier service, place the member into State First-Tier and do not provide the PUB-52.

3. If the member’s last appointment was State Safety, POFF or CHP Patrol and the member has not elected to convert their past State Second-
   Tier service to First-Tier service, place the member into State Second-Tier and do not provide the PUB-52.

The member may contact the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377) to request the election material to elect into
State First-Tier for future and/or past State Second-Tier service any time prior to retirement, provided they are employed by the State on or after 1-
1-2000.




                                                                            16
                                ACCOUNT CODE OVERVIEW
ACCOUNT CODE CHART                                                following information to help you determine
Account codes are used by agencies when                           which account code the employee will go
appointing employees to State positions.                          into.
Account codes determine the retirement plan
and contribution rate. For those employees                        Please note that this is the latest Alternate
eligible for CalPERS membership, the account                      Retirement Program Eligibility Worksheet at
code is used to determine retirement benefit                      the time of printing of this guide. Please refer
factor, member contribution amount, and final                     to the CalHR Website at www.calhr.ca.gov to
compensation (12 or 36 month) period to which                     see if there is a later version. For more
members are entitled as mandated by law.                          information, please see the ARP section in
                                                                  this guide.
It is very important to know the employee’s
membership status and appointment date when                  3. First-Tier vs. Second-Tier
determining which account code to use. Using                    (This applies to Miscellaneous/Industrial
an incorrect account code may cause an                          State Civil Service members only. Public
underpayment of employer or member                              Agencies, County Schools and CSU
contributions. It is your responsibility to correctly           members do not have Second-Tier).
determine which account code to use or it may
result in either party owing more money to the                    First-Tier refers to a retirement formula
System, and the member receiving the wrong                        where members make contributions
retirement benefit.                                               (normally either 5% or 6%, but can be raised
                                                                  or lowered by collective bargaining
The following information is needed to help you                   agreements) to CalPERS and are covered
determine what account a member should be                         under the State Miscellaneous/Industrial 2%
placed in:                                                        at age 55, 2% at age 60, or 2% at age 62
                                                                  formula.
1. Member Group – for the position the
   member is going into:                                          Second-Tier refers to a retirement formula
   • Miscellaneous – Government Code                              where members do not currently make any
     section 20380                                                contributions to CalPERS and are covered
   • Industrial – G.C. 20382                                      under the 1.25% at age 65 or 1.25% at age
   • Safety – G.C. 20399 to 20415                                 67 formula. Beginning on July 1, 2013, all
                                                                  Second-Tier members will start contributing
   • Peace Officer/Firefighter (POFF) –
                                                                  1.5% of earnings in monthly member
     G.C. 20391 to 20398, 20416
                                                                  contributions. This contribution rate shall be
   • CHP – G.C. 20390
                                                                  adjusted annually.
    You can refer to the above sections of the
                                                                  For additional information on the First- and
    California Public Employees’ Retirement Law
                                                                  Second-Tier Retirement Plans, please see
    (PERL) if you need to determine the member
                                                                  “Your Retirement Formula Options” section
    classification. If after referring to the PERL,
                                                                  of the Retirement Benefit Election
    you still cannot make a determination, then
                                                                  Package booklet (PERS-PUB-52).
    please contact CalPERS for assistance.
                                                             4.   Social Security:
2. Alternate Retirement Program (ARP)
                                                                  (This applies to Miscellaneous/Industrial
   (This applies to Miscellaneous/Industrial
                                                                  members only. State Safety, State POFF
   State Civil Service members only.)
                                                                  and CHP members do not pay into Social
   You need to complete the Alternate
                                                                  Security.):
   Retirement Program (ARP) Eligibility
                                                                  • In the Account Code Chart, look for an
   Worksheet to determine if the employee
                                                                      account code with an “N” in the
   should contribute to ARP or CalPERS. The
                                                                      “O=SS/Med; M=Medicare; N=Neither”
   worksheet can be found at the California
                                                                      column if in 1961 the member elected
   Department of Human Resources (CalHR)’s
                                                                      no to Social Security for State service.
   Website. If it is determined the employee
   contributes to CalPERS, then use the                           • Look for an account code with an “O” in
                                                                      the “O=SS/Med; M=Medicare;
                                                        17
                                                                                   Account Code Overview

         N=Neither” column if in 1961 the                 NOTE:
         member elected yes to Social Security            If a miscellaneous/industrial member was first
         for State service.                               hired by the State prior to 04/01/86 and does not
     •   Any Miscellaneous/Industrial employee            have a break in service, they do not pay
         hired into State service after 1961 will         Medicare if they become a Safety, POFF or
         have Social Security — look for an               CHP member. Therefore, look for an account
         account code with an “O” in the                  code with “N”.
         “O=SS/Med; M=Medicare; N=Neither”
         column.                                          6. Final Compensation
          Exception: If the member is a non-                • Effective 07/01/91, all state employees
              resident alien with an F-1, J-1, M-1               were given a 1-year final compensation in
              or Q-1 Visa, they are not subject to               the calculation of their retirement benefit.
              Social Security so look for an                     This means that 12 consecutive months of
              account code with “N”.                             salary will be averaged to calculate their
                                                                 retirement benefit.
5.   Medicare applies as follows:
     • Miscellaneous/Industrial members                       •   Effective 07/01/06, all new state
        who elected no to Social Security in                      employees in collective bargaining unit 2
        1961 but were rehired following a                         were given a 3-year final compensation in
        permanent separation or break in                          the calculation of their retirement benefit.
        service on/after 04/01/86 will have to                    This means that 36 consecutive months of
        pay Medicare only, no Social Security.                    salary will be averaged to calculate their
        Look for an account code with an “M” in                   retirement benefit. Any state employment
        the “O=SS/Med; M=Medicare;                                in collective bargaining unit 2 prior to
        N=Neither” column instead of “N”.                         07/01/06 will exempt the member from the
     • Safety, POFF, or CHP members:                              3-year final compensation.
         If first hired with the State prior to
            04/01/86, the member will not have                •   Effective 01/01/07, all new state
            to pay Medicare. Look for an                          employees in collective bargaining units 1,
            account code with an “N” in the                       3, 4, 7, 10, 11, 12, 13, 14, 15, 16, 17, 18,
            “O=SS/Med; M=Medicare;                                19, 20, and 21 were given a 3-year final
            N=Neither” column.                                    compensation in the calculation of their
         If first hired with the State prior to                  retirement benefit. This means that 36
            04/01/86 and was rehired following                    consecutive months of salary will be
            a permanent separation or break in                    averaged to calculate their retirement
            service on or after 04/01/86, the                     benefit. Any state employment in the
            member will have to pay Medicare.                     bargaining units listed above prior to
            Look for an account code with an                      01/01/07 will exempt the member from the
            “M” in the “O=SS/Med; M=Medicare;                     3-year final compensation.
            N=Neither” column.
         If first hired with the State on/after              •   Effective 10/31/10, all new state
            04/01/86, the member will have to                     employees in collective bargaining units 5
            pay Medicare. Look for an account                     and 8 as well as new non-represented
            code with an “M” in the “O=SS/Med;                    employees associated with the above
            M=Medicare; N=Neither” column.                        collective bargaining units were given a 3-
         Exception: If the member is a non-                      year final compensation in the calculation
            resident alien with an F-1, J-1, M-1                  of their retirement benefit. This means that
            or Q-1 Visa, they are not subject to                  36 consecutive months of salary will be
            Social Security so look for an                        averaged to calculate their retirement
            account code an “N” in the                            benefit. Any state employment in collective
            “O=SS/Med; M=Medicare;                                bargaining units 5 and 8 as well as new
            N=Neither” column.                                    non-represented employees associated
                                                                  with collective bargaining units 5 and 8
                                                                  prior to 10/31/10 will exempt the member
                                                                  from the 3-year final compensation.


                                                     18
                                                                                  Account Code Overview

    •   Effective 01/15/11, all new state                 NOTE:
        employees in bargaining units 6, 9, 10,           For the non-represented “exempt” employee who’s
        and 13 as well as new non-represented             CBID (Section 126 on the PAR) is E01 through
        employees associated with any collective          E21 they will be associated with the particular
        bargaining units except those associated          CBU. If the employee’s CBID is anything else,
        with 5 and 8 were given a 3-year final            e.g., E; E00; E48; E97; E99 etc., then they
        compensation in calculation of their              will be associated with all the other non-
        retirement benefit. This means that 36            represented groups of Supervisors, Confidentials,
        consecutive months of salary will be              and Managers (S, C, and M).
        averaged to calculate their retirement
        benefit. Any state employment in the              9. Concurrent Employment:
        bargaining units listed above as well as             If the employee is concurrently working in
        new non-represented employees                        another position that is also covered by
        associated with any collective bargaining            CalPERS, continue to report all contributions
        units except those associated with 5 and 8           related to that position. Please refer to
        prior to 01/15/11 will exempt the member             “Overtime Positions” in the “General
        from the 3-year final compensation.                  Information” section for additional
                                                             information.
7. Retirement Formula Changes
   The retirement formula and method of                   WHERE HAVE COVERAGE GROUPS GONE?
   calculating final compensation for collective
   bargaining units 1, 3, 4, 11, 14, 15, 17, 20,          In the past, CalPERS assigned Coverage Group
   and 21 for employees first employed with               Codes to designate a specific retirement benefit
   the State on January 15, 2011 through                  package for a group of employees. Each
   December 31, 2012, with no prior service               Coverage Group Code was unique for each
   will be as follows. “Prior State employment”           retirement benefit package. Employers were
   includes any State service (such as part-              instructed on which Coverage Group Codes to
   time, seasonal, or temporary employment)               put their employees into depending on the
   that can be purchased as CalPERS service               specific employer contract dates and/or
   credit.                                                provisions. For State and School employers, the
                                                          correct Coverage Group Code depended on
    •   Miscellaneous/Industrial/ARP – 2%@60              government code provisions and specific dates
        formula based on 3-year highest                   pertinent to employment history of each
        compensation                                      employee. This required knowledge on the part
    •   State Safety – 2%@55 formula based                of the employer to determine the correct
        on 3-year highest compensation                    Coverage Group Code to enroll a participant
    •   Second Tier – 1.25%@ formula based                into.
        on 3-year highest compensation
                                                          To alleviate the need for employers to try to
    For more information, see the California              select the appropriate Coverage Group Code,
    Department of Human Resources Website                 the new my|CalPERS system will now determine
    at www.calhr.ca.gov.                                  the retirement benefit package of each
                                                          participant based on a combination of data
8. Collective Bargaining Unit (CBU):                      elements reported by the employer. This
   Some account codes are based on what                   change allows the my|CalPERS system to be
   collective bargaining unit the member is in.           more robust and flexible in meeting the
   Currently there are 21 bargaining units 1 – 21.        demands of future contract amendments and
   • Non-represented members are                          government provisions. This will assure proper
        Supervisors, Confidentials, and                   benefit payments to our future retirees and
        Managers (S, C, and M). With this                 beneficiaries, with less room for error.
        group, ignore the bargaining unit
        number if the member is miscellaneous,
        industrial or safety.




                                                     19
                                                                                   Account Code Overview

PUBLIC EMPLOYEES’ PENSION REFORM ACT OF                   ACCOUNT CODE CHART
   2013 (PEPRA)
Public employers will be prohibited from granting         For a list of the Retirement Benefit Formula
retroactive pension benefit enhancements that             Account Code Tables, please select the
would apply to service performed prior to the             following link: http://www.calpers.ca.gov/eip-
effective date of the enhancement.                        docs/employer/admin-rptg/ret-benefit-formula.xls

PEPRA reduces benefit formulas and increases              Specific questions concerning membership
retirement age provisions and creates new                 eligibility should be directed to the CalPERS
defined benefit formulas for all new                      Customer Contact Center at 888 CalPERS
miscellaneous (non-safety) and safety members.            (or 888-225-7377).

NOTE:
Please see the Membership chapter of this Guide
for the definition of a new PEPRA member.

For new safety members, the law provides for
three possible retirement formulas and requires
that new safety members be provided with the
new formula that is closest to the formula offered
to classic members of the same classification,
and provides a lower benefit at 55 years of age
than the formula offered to classic members.
The three new defined benefit formulas for new
safety members include a normal retirement age
of 50 and a maximum benefit at age 57.

For all new miscellaneous members, the new
defined benefit formula is 2% at age 62, with an
early retirement age of 52 and a maximum
benefit factor of 2.5% at age 67.

The new formulas will be implemented in
my|CalPERS to take effect on January 1, 2013.
The legislatively mandated formulas and
provisions will be merged with your agency’s
existing optional provisions, with some
exceptions, effective on December 31, 2012, to
create the new benefit groups.




                                                     20
               THE ALTERNATE RETIREMENT PROGRAM (ARP)
                         (CIVIL SERVICE ONLY)
The Alternate Retirement Program (ARP) is a              •   The employee is employed by the California
mandatory savings plan for certain new first-time            Highway Patrol as a cadet at the
State miscellaneous and industrial employees                 department’s training school established
hired on August 11, 2004 through June 30,                    pursuant to Section 2262 of the Vehicle
2013*.                                                       Code.
                                                         •   Employee was first hired by the state prior to
WHO IS ELIGIBLE FOR ARP                                      August 11, 2004 in a position that may not
•   First employed by the State on August 11,                have qualified for membership.
    2004 through June 30, 2013*.                         •   The employee is with the Judges’
•   Meet the definition of “State employees”                 Retirement System, the Judges’ Retirement
    under G.C. section 19815.                                System II, the Legislators’ Retirement
•   Qualify for CalPERS membership as a state                System, the State Teachers’ Retirement
    miscellaneous or state industrial member.                System, or the University of California
                                                             Retirement Plan.
*Pending legislation may change this date to             •   The employee is an employee of California
December 31, 2012.                                           State University or the state legislative or
                                                             judicial branch.
The employer is required to complete the ARP             •   The employee is appointed as State Safety,
Eligibility Worksheet to determine if the                    State Patrol, or State Peace
employee is mandated into the Alternate                      Officer/Firefighter.
Retirement Program. This on-line worksheet can           •   The employee is a National Guard member
be found through CalHR’s Website at                          pursuant to G.C. section 20380.5.
www.calhr.ca.gov and following these steps:
                                                         To determine the correct account code for an
•   Select the State HR Professionals tab                ARP member, refer to the Miscellaneous or
•   Choose Benefits Administration section               Industrial Account Code Tables, the ARP
•   Select the Alternate Retirement Program              eligibility worksheet or the ARP Timeline within
    (ARP) link                                           this Guide.
•   Choose the ARP Eligibility Worksheet from
    the list                                             ARP TIMELINE
•   Select the ARP Eligibility Worksheet link            See the diagram in this section.
•   Select the ARP Eligibility Worksheet link to
    open the worksheet                                   First 24 Months:
                                                         • Employee contributes to Alternate
WHO IS NOT ELIGIBLE FOR ARP                                  Retirement Account administered by CalHR.
•   The employee is a current or prior member            • Contributions to the Alternate Retirement
    of CalPERS.                                              Program are based on the employee’s
•   The employee is or was a member within                   Bargaining Unit Agreement. The
    the prior 6 months of a reciprocal retirement            contributions will be the same amount that
    system (see the reciprocal section of this               would normally be paid to CalPERS.
    guide for a list of reciprocal retirement            • Employees are CalPERS members even
    systems).                                                though they contribute to the ARP.
•   The employee is on a Visa and not
    coordinated with Social Security (non-               Beginning the 25th Month
    resident aliens working under the provisions         • 505 Transaction processed by SCO to
    of a F-1, J-1, M-1, or Q-1 visa and                     transfer member from ARP to CalPERS.
    performing services to carry out the purpose         • Employee begins contributing to CalPERS.
    for which they were admitted to the United           • Employer provides employee the Retirement
    States).                                                Benefit Election Package booklet (PERS-
                                                            PUB-52).


                                                    21
                                                                The Alternate Retirement Program (ARP)


•   Employee has 180 days to elect Second-                NOTE:
    Tier (See First-Tier vs. Second-Tier Chart in         If the employee opts not to purchase the service
    this guide).                                          credit during this 3-month period, the employee
                                                          remains eligible to purchase the ARP time in the
                                                          future. If the employee decides to purchase this
         th
In the 46 Month – Election Notification                   service in the future, the service will be
• Employee receives a Payment Election                    calculated at a present value cost. This cost may
     Notification letter notifying the employee of        be considerably higher than if the employee
     the upcoming election period.                        transfers their contributions during the election
                                                          period.

Between the 47th and 49th Month —                         Return of contributions if employee separates
ARP Election                                              State employment:
• Employee is directed to the Savings Plus                • First 24 months
   website (www.savingsplusnow.com) or to                     Employee may request a distribution of
   call Savings Plus (855-616-4776) to make                      ARP contributions – See CalHR’s
   their ARP election.                                           Website at www.calhr.ca.gov for
• Employee may make an election on the                           information.
   distribution of their ARP contributions.
• Employee Options:                                       • After employee begins contributing to
    Option 1: Transfer all funds in                        CalPERS and has not elected transfer of ARP
      employee’s ARP account to CalPERS to                  contributions to CalPERS
      buy retirement service credit for the time              Employee may request a distribution of
      employee was enrolled in ARP. The State                    ARP contributions from CalHR.
      would fund the portion of the liability not             If employee is not employed with another
      paid for by employee’s ARP account.                        CalPERS employer, employee may
                                                                 request a refund of CalPERS
NOTE:                                                            contributions from CalPERS.
If the employee elects to transfer funds to
CalPERS, CalPERS will credit the employee’s               • After employee begins contributing to
retirement account with First-Tier service for the          CalPERS and has elected transfer of ARP
time employee was in ARP. Service credited will             contributions to CalPERS and is not employed
be based on the employee’s pay rate and                     with another CalPERS employer
earnings for each month the member worked                     Employee may request a refund of
and contributed to ARP.                                          CalPERS contributions from CalPERS.

     Option 2: Receive a lump-sum                        Reemployment of an ARP Member to a State
      distribution of all funds in employee’s ARP         Miscellaneous/Industrial Position
      account, which may subject the employee             If you are appointing an ARP member who has
      to tax penalties for early withdrawal.              permanently separated from employment, place
     Option 3: Transfer all funds in                     them into an ARP coverage group if the
      employee’s ARP account to a 401(k)                  appointment date is within 24 months of their
      account with the Savings Plus Program               first entry into the ARP.
      (SPP). If employee already has an SPP
      401(k) account, the employee’s funds will           If you are appointing an ARP member and the
      go here; if not, SPP will set up a 401(k)           appointment date is over 24 months from their
      account for the employee. This option               first entry into the ARP, do not place them back
      requires no action on the employee’s part;          into the ARP. Place them into a CalPERS
      it happens automatically if the employee            contributing account code.
      does not submit a form during the three-
      month period described above.




                                                     22
                                                           The Alternate Retirement Program (ARP)




                             Beginning
                             the first day
                             of the 24th
                             month
                                        180 day election      47th – 49th month
First 24 months                         period for
                                        Second -Tier




        Employee                                            Election period for
        contributes to ARP    Employee begins to            ARP
        Program                contribute CalPERS,          Employee determines
                               and is automatically          the distribution of
                               placed in First -Tier         funds in their
                              Employer gives                Alternate Retirement
                               employee PUB-52               Account with CalHR
                              Employee has 180 days         (3 options available)
                               to elect Second -Tier




                                               23
                       DETERMINING MEMBERSHIP ELIGIBILITY

   Is this person
   employed as a                                    See “Employment of a Retiree”
   CalPERS retiree?                  YES            in the Benefits Procedure
                                                    Section and/or “Employment
                                                    after Retirement” booklet

           NO




      Is position
    “excluded” in                     YES            Complete AESD-139S,
     the PERL?                                       if applicable




           NO




      Is person an                                     Complete AESD-3; or
       “optional”                     YES             AESD-59; or AESD-83 if
        member?                                        membership is elected




           NO




    Does the person
       qualify for
                                       YES
      immediate
     membership?



                               Is the person                             Submit ARP
                               mandated into ARP?      YES                enrollment
           NO




                                                         Submit enrollment
Complete AESD-139S, and
                                      NO                   into CalPERS
monitor time worked. Submit
enrollment if/when employee
qualifies for membership.

                                            24
             POSITIONS EXCLUDED BY RETIREMENT LAW (PERL)
                        FROM CALPERS COVERAGE

MEMBERS OF OTHER RETIREMENT SYSTEMS                        Tieberg v. Unemployment Insurance Board
Persons who are receiving service credit in                (1970) 2 Cal.3d 943, 949. These factors are also
another public retirement system (federal, state,          cited in the CalPERS Precedential Decision
county, city, other local or CalSTRS) are                  Case No. 05-01, In the Matter of the Application
excluded from receiving credit with CalPERS for            for CalPERS membership credit by Lee
that same service by G.C. section 20303.                   Neidengard, Respondent and Tri-Counties
                                                           Association Regional Center, Respondent.
NOTE:
Persons can have dual membership in two or                 A “contract employee” (i.e., a common law
more public retirement systems, as long as it is           employee who periodically signs an employment
for different service.                                     contract) is eligible for CalPERS membership, if
                                                           otherwise qualified.
EXCEPTION: G.C. section 20303(b)(4) provides
that persons participating in a “supplemental              NOTE:
defined benefits plan” that has received a ruling          CalPERS commonly corresponds with agencies
from IRS that the plan qualifies under Section             (e.g., sends a questionnaire to be completed by
401(a) of the Internal Revenue Code, where the             both the worker and the contracting entity) in
plan provisions state that CalPERS is the                  order to determine whether a worker is an
primary plan for these employers, and plan                 “employee” of a CalPERS covered agency, an
participation will not in any way interfere with           employee of a non-CalPERS agency, or an
CalPERS benefits, are not prohibited from such             independent contractor. It is important that such
dual participation.                                        questions be answered authoritatively by an
                                                           appropriate certifying officer at your agency,
                                                           since the employer may be liable for arrears
HEALTH AND WELFARE OR TRADE RATE                           costs (if membership is determined to be
   EMPLOYMENT                                              retroactively applicable), if the worker is found to
Employees hired in Skilled Trades classifications          be an “employee” of your agency.
are excluded from CalPERS if payments are
made to the Health & Welfare Fund of the
Union. (Use Account Codes NA or NH,
                                                           ELECTED APPOINTED OFFICERS
depending on whether the employee is subject               G.C. sections 20320–20325 exclude certain
to Medicare coverage.) If the employee is not              public officers and employees from membership
entitled to have payments made to Health &                 unless an election is filed with CalPERS to
Welfare fund, use normal CalPERS eligibility               waive the exclusion and establish membership.
rules for determining membership.                          Those persons qualifying for “optional”
                                                           membership rights are predominately, but not
                                                           limited to, elected and appointed officers of
INDEPENDENT CONTRACTORS                                    public agencies, schools, and the State of
Independent contractors are not “employees”                California. Refer to the “Optional Members of
and are excluded from membership in CalPERS                CalPERS” section for more complete information
by G.C. section 20300(b). An independent                   to determine who is excluded but eligible under
contractor is someone who contracts to provide             optional member provisions.
a service or complete a task according to his or
her own methods, and is not subject to the
contracting entity’s control as to the end product,
                                                           STUDENT AIDES IN THE SPECIAL SCHOOLS OF
final result of work, or manner and means by                  THE STATE DEPARTMENT OF EDUCATION
which the work is performed.                               Students working as Student Aids at one of the
                                                           special schools of the State Department of
CalPERS uses the “Common Law Control Test”                 Education are excluded from membership in this
as a guide to determining independent                      system.
contractor status. The common law control test
factors are enunciated in the case of Albert B.

                                                      25
                                                            Positions Excluded from CalPERS Coverage


CALIFORNIA CONSERVATION CORPS                          EXTENSION SERVICE
   PARTICIPANTS                                        Where compensation is established on the basis
Participants, other than staff officers and            of class enrollment; these are indicated by the
employees, are excluded from membership.               following class codes:

ASSEMBLY FELLOWS, SENATE FELLOWS, AND                      2322     Instructional Faculty,
                                                                    Special Programs
   EXECUTIVE FELLOWS                                       2323     Instructional Faculty,
Program employees are excluded. For CSU                             Extension — For Credit
employees only, this is Class Code 2944. Once              2362     Demonstration Instructional Faculty
the employee becomes a member, this time may               2363     Instructional Faculty,
be purchased. Refer to Pub – 12.                                    Extension — For Non-Credit
                                                           2365     Instructional Faculty,
INMATES OF STATE INSTITUTIONS                                       Music Studio
 (i.e., prison/penitentiary or mental hospital)
Such persons are excluded from CalPERS                 SUMMER SESSION/INTERSESSION
membership by G.C. section 20300(a) even if            Employment in the following class codes are
receiving compensation for such services they          generally excluded from CalPERS since
perform.                                               employment is typically in addition to other full
                                                       time employment. However, if employment in
EXCLUSIONS APPLICABLE ONLY TO CALIFORNIA               the other class is less than full time, then the
   STATE UNIVERSITY                                    following class codes are reportable to
                                                       CalPERS:
STUDENT ASSISTANTS
   INDICATED BY THE FOLLOWING CLASS                        2357 Instructional Faculty,
                                                                Summer Session
   CODES:                                                  2368 Instructional Faculty,
                                                                Extra Quarter Assignment, QSYRO
    0100    Youth Summer Aid                               2390 Instructional Faculty,
    1150    Instructional Student Assistant                     Summer Quarter Assignment
    1151    Instructional Student Assistant,               2394 Instructional Faculty,
            On-Campus Work Study                                Executive Committee,
    1868    Student Assistant — Non Resident                    Academic Senate
    1869    Resident Assistant                             2395 Instructional Faculty,
    1870    Student Assistant                                   Chairman, Academic Senate
    1871    Student Trainee,                               2402 Instructional Faculty,
            Work Study on Campus                                Summer Arts Program
    1872    Student Trainee,
            Work Study off Campus                      EXCLUSIONS APPLICABLE ONLY TO
    1874    Bridge Student Assistant
    1875    Bridge Student Trainee,                       UNIVERSITY OF CALIFORNIA
            On-Campus Work Study
    1876    Bridge Student Trainee,                    Employees Hired after October 1, 1963
            Off-Campus Work Study                      Persons are excluded and are now subject to
    2325    Graduate Assistant, Monthly                the University of California Retirement Plan
    2326    Graduate Assistant,                        (UCRP), rather than CalPERS
            On-Campus Work Study                       .
    2355    Graduate Assistant




                                                  26
                        DETERMINING RETIREMENT BENEFITS
When determining retirement benefits for a new             Scenario 2 – Classic Member
employee, the following items may impact which             The employee was hired by employer #1 on
benefits the employee shall receive. This list             January 1, 2009, in the first level of benefits. On
only includes the most common items.                       January 1, 2010, the employee separated from
                                                           employer #1 and withdrew their contributions
•   Effective date of contract amendment(s)                from CalPERS. On May 1, 2011, the employee
•   Retirement benefit formula                             was hired by employer #2 and qualified for
•   Final compensation                                     membership. However, on July 1, 2011, the
•   Member and/or employer rate                            employee separated from employer #2, but left
•   Cost of living allowance (COLA)                        their contributions on deposit. On July 2, 2011,
                                                           the employee was rehired by employer #1.
G.C. section 20475(b) indicates a member shall             During the time the employee was not working for
be subject to the contract as amended only if,             employer #1 a second level of benefits was
after the effective date of the contract                   added for the same member category, changing
amendment, the member either (1) receives                  the retirement benefit formula from 2.7% @ age
service credit for the first time within a                 55 to 2% @ age 55 effective September 1, 2010.
classification, or (2) the member returns to
service with a classification following termination        Result: Since the employee did not redeposit
of membership as provided for in G. C. section             their withdrawn contributions from employer #1
20340(b) unless the member has redeposited                 within 90 days of rehire; employer #1 is required
contributions or elects to redeposit prior to 90           to enroll the employee into the second level of
days after returning to service in accordance with         benefits with a benefit formula of 2% @ age 55.
G. C. section 20750, in which case the member
shall not be subject to the contract amendment.            Scenario 3 – Classic Member
                                                           The employee was hired on January 1, 2009, in
NOTE:                                                      the first level of benefits. On May 1, 2011, the
The employer or member is responsible for                  employer added a second level of benefits for the
submitting a request to CalPERS to obtain the              same member category, changing the final
cost calculation to redeposit the previously               compensation from 12 to 36 months. On January
withdrawn funds.                                           1, 2012, the employee separated and withdrew
                                                           their member contributions from CalPERS. On
                                                           June 1, 2012, the employer rehired the employee
The following scenarios will provide a greater
                                                           and they redeposited their withdrawn
understanding of determining retirement benefits:
                                                           contributions within 90 days.
Scenario 1 – Classic Member
                                                           Result: Since the employee redeposited their
The employee was hired on January 1, 2009, in
                                                           contributions within 90 days of rehire, they should
the first level of benefits. On May 1, 2011, the
                                                           be enrolled into the first level of benefits with a
employer added a second level of benefits for the
                                                           final compensation period of one year.
same member category, changing the final
compensation from 12 to 36 months. On January
                                                           Scenario 4 – Classic Member
1, 2012, the employee separated and withdrew
                                                           The employee was hired part-time on January 1,
their member contributions from CalPERS. On
                                                           2011, and did not qualify for immediate
June 1, 2012, the employer rehired the
                                                           membership and had to be monitored. On May 1,
employee.
                                                           2011, the employer added a second level of
                                                           benefits changing the cost of living allowance
Result: Since the employee did not redeposit
                                                           (COLA) from 3% to 2%. On January 1, 2012, the
their contributions within 90 days of rehire, the
                                                           employee qualified for membership.
employer is required to enroll the employee into
the second level of benefits with the 36 month
                                                           Result: Since the employee qualified for
final compensation period.
                                                           membership after the addition of a second level
                                                           of benefits, the employer is required to enroll the


                                                      27
                                                       Determining Retirement Benefits


employee into the second level with a COLA of
2% and a membership date of January 1, 2012.

Scenario 5 – New Member
The employee was hired on January 1, 2012, and
separates from the employer on March 31, 2012.
The employee is subsequently hired by a
different CalPERS covered employer on February
1, 2013 after the Public Employees’ Pension
Reform Act of 2013 (PEPRA) took effect on
January 1, 2013.

Result: Since the employee had a break in
service greater than six months between the
separation date with the previous employer and
the appointment date with the subsequent
employer, the employee would be considered a
new member.

Scenario 6 – Classic Member
The employee was hired on January 1, 2012, and
separates from the employer on November 30,
2012. The employee is subsequently hired by a
different CalPERS covered employer on March 1,
2013 after PEPRA took effect on January 1,
2013.

Result: Since the employee had a break in
service of less than six months between the
separation date with the previous employer and
the appointment date with the subsequent
employer, the employee would be considered a
classic member.

Scenario 7 – Classic Member
The employee was hired on October 1, 2012, and
separates from the employer on March 31, 2013.
The employee is subsequently hired by the same
CalPERS covered employer on December 1,
2013 after PEPRA took effect on January 1,
2013.

Result: Since the employee had a break in
service more than six months between the
separation date, but returned to the same
employer, they are considered a classic member.




                                                  28
                        “OPTIONAL” MEMBERS OF CALPERS
The Government Code provides “optional”                       c) Members of the Board of Prison Terms, the
membership rights for certain public officers and                State Personnel Board, or the State Air
employees. Those eligible “optional” members                     Resources Board.
are excluded unless an election for membership                   (G.C. section 20305(a)(5))
is filed with CalPERS.
                                                          3. Officers of the Senate or Assembly —
If membership is elected and established:                    Elected by either or both such houses.
                                                             (G.C. section 20322(b))
1. Other than the choice whether or not to elect
   retirement coverage, “optional” members are            4. Legislative Employees — Employees of
   subject to the standard CalPERS laws and                  the Senate or the Assembly whose salaries
   regulations that apply to non-optional                    are paid from the operating funds of the
   members.                                                  Senate or the Assembly. (G.C. section
2. There is no Government Code provision to                  20324)
   opt out of membership prior to separation
   from employment. Once elected, the                     NOTE:
   membership must be continued for all future            Legislative Employers should use the Public
   consecutive “optional” member positions                Agency and Schools Procedures Manual for
   with the same employer as long as the                  most of their questions, since they are not
   future positions are not excluded by law or            covered by the Uniform State Payroll System
   contract. If the employee changes positions            (USPS).
   within your agency a new election must be
   submitted.                                             5. California National Guard — Government
                                                             Code Section 20326 provides that California
TYPES OF “OPTIONAL” MEMBERS                                  National Guard officers, warrant officers,
There are five classes of State employees that               and enlisted personnel may elect
are eligible for “Optional” membership:                      membership by completing the Election of
                                                             Optional Membership – California
1. State Officers elected by the People —                    National Guard Member form. An election
   The Governor, Lieutenant Governor,                        form may be obtained by calling CalPERS
   Secretary of State, Controller, Treasurer,                toll free at 888 CalPERS (or 888- 225-7377).
   Attorney General or Insurance                             The election may be made at any time while
   Commissioner. (G.C. section 20322)                        in service with the California National Guard.

2. Appointees of State Officers —                         Electing National Guard Membership
   (G.C. section 20320)
                                                          The form must be submitted to the Military
    These include:                                        Department. Do not submit the form directly to
                                                          CalPERS. The Military Department will verify
    a) Persons directly appointed by the                  the person’s National Guard status, contact
       Governor, without nomination of any                them to arrange a contribution payment plan,
       officer or board. Normal membership                and submit the membership form to CalPERS.
       eligibility must be met.                           Once elected, the membership remains in effect
    b) Persons exempt from Civil Service, and             for all future service with the California National
       directly appointed by the:                         Guard.
       • Attorney General
       • Lieutenant Governor                              A National Guard member may be eligible to
       • Controller                                       purchase past National Guard service, or past
       • Secretary of State                               CalPERS service. Other types of qualifying
       • Treasurer                                        service include redeposit of contributions
       • Superintendent of Public Instruction             previously withdrawn from CalPERS, certain
            (except for teaching staff of schools)        types of leave of absence.




                                                     29
                                                                         “Optional” Members of CalPERS


Benefits                                                 GENERAL PROVISIONS/INSTRUCTIONS
National Guard members are covered by the                •   “Optional” membership may not be
state miscellaneous benefit formula of 2% at age             established unless and until the eligible
55. A National Guard member does not have all                person signs and submits an election to join
the benefits of a state employee. State benefits             CalPERS.
that are not available to National Guard
members include CalPERS health benefits,
                                                         •   Membership may be elected at any time
state dental and vision care benefits, golden
                                                             while in an eligible position. However,
handshake retirement incentives and the use of
                                                             membership is established on a prospective
salaries under another CalPERS employer or a
                                                             basis, usually with the effective date
reciprocal retirement system to compute “final
                                                             matching the first day of the pay period
compensation” for their National Guard service.
                                                             starting after the election for membership is
                                                             signed. The position must be compensated
One-time Cancellation of Membership
                                                             other than just reimbursement of expenses.
Government Code Section 20327 provides that
                                                         •   Any person concurrently employed in a
a National Guard member may, on a prospective
                                                             position also covered by or potentially
basis, cancel his or her election of membership
                                                             covered by CalPERS should first contact
by filing a written notice of cancellation. This
                                                             CalPERS to determine the impact should
prospective cancellation may be made one time
                                                             “optional” membership be elected.
only.

To prospectively cancel National Guard                   •   Any person concurrently employed in a
membership, the member must complete the                     position reportable to a private benefit plan
Cancellation of Election of Optional Membership              or another retirement system should first
– California National Guard Member form. An                  contact that organization to determine if
election form may be obtained by calling                     CalPERS membership will impact their
CalPERS toll free at 888 CalPERS (or 888-225-                benefits.
7377). The form must be submitted to the
Military Department, not to CalPERS. The                 •   A person appointed to an unexpired elected
Military Department will notify the member of the            term of office has the same optional
final amount due to the account, and notify                  membership rights as if elected in his/her
CalPERS of the decision to cancel membership.                own right.

When a member elects to cancel CalPERS                   •   Once “optional” membership is elected, it
membership, they stop paying contributions.                  must be continued for all future consecutive
Contributions already paid to CalPERS remain                 “optional” member positions not excluded by
in an account at CalPERS and continue to earn                law or contract with the same employer. A
interest. If a member has elected to purchase                member cannot receive a refund or retire
service credit, they must continue making those              from CalPERS while continuing to hold an
payments until the purchase is paid in full.                 optional position for which the membership
                                                             was established. There is no provision to opt
If a member cancels their CalPERS membership                 out of CalPERS membership while
and separates from the California National                   remaining in the position, even if
Guard, they may be eligible to receive a refund              compensation is waived.
of their contributions and terminate their
CalPERS account.                                         •   Legislative staff employees: Though
                                                             “optional” member status is provided by
For more information on National Guard                       Government Code section 20324,
membership please refer to CalPERS                           membership cannot be established unless
National Guard Benefits (PUB-11).                            the employee is working qualifying time,
                                                             based on the same criteria as applied to
                                                             “non-optional” members. The pay rate and
                                                             earnings reported will determine the amount
                                                             of service credit accrued.

                                                    30
                                                                            “Optional” Members of CalPERS


ELECTION OF OPTIONAL MEMBERSHIP                                 covered agency, the member must complete
   (AESD-3, AESD-59, OR AESD-83)                                another election form for the newly elected
                                                                position.
A completed and signed “Election of Optional
Membership” form AESD-3, AESD-59, or AESD-
                                                            “OPTIONAL” MEMBERSHIP SERVICE CREDIT
83 is required to validate and establish
membership for an individual who qualifies as an            1. Optional member service is time spent working
“optional” member. The form must be submitted                  in certain exempt, appointed, or elected
to CalPERS at the same time the employee                       positions that allow employees the option of
enrollment is sent to the State Controller’s Office            joining CalPERS. Employees can purchase
in order to satisfy the legal requirements. The                service credit for optional member service if they
forms may be downloaded from the Forms &                       are (or elect to become, if eligible) a CalPERS
Publication Center on CalPERS Website at                       member. Retired members cannot purchase
www.calpers.ca.gov.                                            service credit for optional member service.
   Form        Type of “Optional” Member
                                                            2. An “optional” member may elect to contribute
AESD-3         Legislative Employees                           and receive service for previous qualifying
AESD-59        Officers of the Senate or                       employment. Such election would not change
               Assembly; and State Officers                    the membership date back to the beginning date
               elected by the People
                                                               of the service purchased by the member.
AESD-83        Appointees of State Officers
                                                            3. A “legislative staff employee” (G.C. section
WHEN TO COMPLETE                                               20324) shall have the option as to how much of
The AESD-3, AESD-59, AESD-83 (election form)                   his/her previous legislative service is to be
should be completed only after it is determined that           credited.
the individual does qualify for “optional”
membership.                                                 4. A person who is no longer in the “optional”
                                                               member position, but is currently an active or
1. The “optional” member must first be advised of              inactive CalPERS member, may also elect to
   CalPERS election rights when eligible for                   contribute for previous qualifying “optional”
   membership. The election can be made at any                 employment.
   time during the qualifying employment.
   Document in employer personnel records that              5. There are no limitations on the amount of time
   the information was provided as well as any                 that can be purchased.
   response received. Do not send a notice to
   CalPERS if membership is declined.                       6. See the booklet “Guide to Your Service Credit
                                                               Purchase Options” (PUB-12) for further
2. The election form should not be completed as a              instructions on submitting an additional service
   request for additional information or service               credit inquiry. Do not attach the inquiry to the
   credit. It is to be used only when the person has           AESD-3, the AESD-59 or the AESD-83; it should
   decided to establish CalPERS membership for                 be submitted separately to the address provided
   the “optional” position.                                    on the form.

3. The signed election form must be filed with
   CalPERS.

4. Complete the appropriate election form and
   membership transaction when a current
   active or inactive member assumes an
   “optional” member position and wishes
   membership for that office.

5. When changing elected positions within the
   same agency, or with another CalPERS

                                                       31
                                  CALPERS OR CALSTRS?
Public school positions in California are divided into        Education Code Section 22508(c):
two basic types:                                              A CalPERS member employed by a school district
                                                              or a county superintendent, the State Department of
1.   CERTIFICATED                                             Education, or the Board of Governors of the
     An employee in a position requiring certification        California Community Colleges, who then is
     qualifications by or pursuant to the Education           employed in a position that qualifies for membership
     Code. Credentialed employees (e.g., teachers,            in CalSTRS, will enter CalSTRS membership in the
     administrators, health care and library media            new position. However, he or she may elect to
     workers) are all in certificated positions.              remain a member of CalPERS in the new position if
                                                              they meet the conditions of G.C. 20309.
2.   CLASSIFIED
     An employee in a non-certificated position (e.g.,        INCLUSION OF CERTAIN STATE EMPLOYEES
     office workers, custodial staff, and cafeteria
     workers).                                                Employees in Certain State Bargaining
                                                                Groups
In general terms, employees in certificated positions
are, upon meeting normal qualification requirements,          SB 1694 (Chapter 880, Statutes of 2000) amended
eligible for membership in the California State               Section 22508 of the Education Code, and now
Teachers’ Retirement System (CalSTRS), while                  provides that this same election right will be given to
classified employees may be eligible for                      CalSTRS members that enter State employment
membership in CalPERS.                                        where one of the following conditions apply:

Pursuant to G.C. sections 20300(g), 20501 and                 A. The employee is represented by a State
20610, CalPERS can cover school employees only                   Bargaining Unit that represents educational
with respect to employment in which they are not                 consultants, professional educators, or
eligible for CalSTRS coverage. Some persons who                  librarians employed by the state; OR
are eligible for membership in CalSTRS or CalPERS
may not actually qualify for membership in either             B. The employee is excluded from the definition of
system (due to “part-time” or “temporary/seasonal”               “State employee” in G.C. Section 3513(c), yet
status, etc.); thus, some school employees may not               performs, manages or supervises work similar
be members of either system until their working                  to employees under Subparagraph “A” above;
hours or conditions change.                                      OR

The Education Code (which contains the laws                   C. The employee is in a non-civil service position in
governing CalSTRS) contains two basic provisions,                the Executive branch, yet performs, manages or
which may give persons certain rights with regard to             supervises work similar to employees under
choosing coverage under one system or the other.                 Subparagraph “A” above.

Education Code Section 22508(a):                              SB 1694 (Chapter 880, Statutes of 2000) amended
A person who is a CalSTRS member, who                         Section 20309 of the Government Code, and now
subsequently is employed by a school district,                provides that this same election right will be given to
community college district or a county                        CalPERS members that enter employment that
superintendent (or by the State in other certain              qualifies for membership in CalSTRS where the
cases; see “Inclusion” section below) in a position           following conditions apply:
which requires CalPERS membership (i.e., a
classified position), will enter CalPERS membership           A. The member is employed by the State Board of
in the new position. However, he or she may elect to             Governors of the Community Colleges or the
remain a member of CalSTRS in the new position.                  State Department of Education;




                                                         32
                                                                                      CalPERS or CalSTRS?


SB 165 (Chapter 77, Statutes of 2001) again              These elections must be made in writing by
amended Government Code section 20309, which             completing the “Retirement System Election” (ES-
will also allow CalPERS members with five years of       372 05/09). This form can be obtained from the
CalPERS credited service, which enter employment         CalSTRS Website www.calstrs.com. Send the
on or after 01/01/2002 that qualifies for membership     completed form to CalSTRS and a copy to
in CalSTRS, the right to elect to remain in CalPERS.     CalPERS. This form must be filed within 60 days of
The five years of service accrued under CalPERS          entry into the new position. The election filed must
can be with the State of California, a Public Agency,    be signed and dated by both the employee and
a County School, or a combination thereof.               employer. It should also indicate the date the
                                                         employee entered the new position. Incomplete
Persons Entering State Second-Tier                       elections will be returned to the employer for further
Membership between July 1, 1991                          action.
and September 11, 2000
                                                         Send elections to:
AB 649 (Chapter 402, Statutes of 2000) added
Section 22508.6 to the Education Code and Section        CalSTRS
20309.5 to the Government Code, and provides that        P.O. Box 15275
a “vested” CalSTRS member who enters State               Sacramento, CA 95851-0275
employment subject to the Second-Tier benefit plan
may elect to have this service subject to CalSTRS        And
rather than CalPERS, under the following conditions:
                                                         CalPERS
1.   The member must have entered State                  Customer Account Services Division
     employment within 30 days of separation from        Attn: Unit 841
     CalSTRS-covered employment;                         P.O. Box 942704
                                                         Sacramento, CA 94229-2704
2.   The member must have had no other
     intervening employment;                             Completed elections may also be uploaded into
                                                         my|CalPERS.
3.   The change of employment occurred between
     July 1, 1991 and September 11, 2000;                This right of election arises when the employee
                                                         enters a position or has a major change in
4. The member must be subject to the State               conditions of employment that requires membership
   Second-Tier.                                          in the other retirement system. If a person does not
                                                         exercise the right of election within 60 days from
5. The member meets one of the following                 their date of hire into the position, they will be
   criteria:                                             reported to the new retirement system. Once a
                                                         person does exercise this right of election, they will
     A. Is represented by a State Bargaining
                                                         be reported to the elected retirement system from
        Unit that has agreed to an MOU making
                                                         the date of hire. This election is irrevocable and will
        their represented employees subject to
                                                         remain in effect until a change in employment occurs
        G.C.section 20309.5;
                                                         that qualifies the employee for the election right or
     B. Is excluded from the definition of “State        until the person separates from employment and
        employee” in G.C. section 3513(c), yet           receives a refund of all accumulated contributions
        performs, manages or supervises work             and interest.
        similar to employees under
        Subparagraph “A” above;

     C. Is in a non-civil service position in the
        Executive branch, yet performs,
        manages or supervises work similar to
        employees under Subparagraph “A”
        above.

                                                    33
                                                                                           CalPERS or CalSTRS?


Should the employee return to employment and                 ADDITIONAL INFORMATION
upon qualification, the employee would become a              1.   A person is a “member” of CalPERS or
member of the retirement system that they qualify                 CalSTRS unless they have permanently
for in that position. Use the chart following this                separated from all employment covered by the
section as a guide to determine the retirement                    system and received a refund of his or her
system coverage for the employee. The Education                   contributions and interest on deposit.
Code (which governs CalSTRS), not the
Government Code (which governs CalPERS),                     2.   It is possible to be an active (i.e., currently
contains the laws regulating this election of                     employed) member of both CalSTRS and
coverage. The final decision in any questionable                  CalPERS as long as this dual coverage is for
situation (e.g., acceptance of “late” elections) must             different positions.
be made by CalSTRS, not CalPERS.
                                                             3.   The right of election arises for a CalPERS
DIFFERENCES BETWEEN CALPERS AND                                   member through school employment, Board of
   CALSTRS                                                        Governors, and the State Department of
There are a number of factors that might influence a              Education. If a person has CalPERS
person’s decision about coverage under one system                 membership through some other type of
or the other. Some of the differences between the                 employer (most State or contracting Public
two systems are the following:                                    agencies), the right of election of coverage to
                                                                  remain a CalPERS member arises only if the
1.   CalPERS members may or may not have Social                   member has attained 5 years of service and
     Security coverage (most do), whereas CalSTRS                 changes positions on or after January 1, 2002.
     members generally do not;
                                                             4.   The right of election arises after one has been
2.   The Benefit Factors based on age for service                 hired in a position that would require
     retirement may be different;                                 membership by the other retirement system.

3.   The employee contribution rates may be                  5.   The election should be filed with the system
     different;                                                   indicated by the Education Code section (see
                                                                  previous page); send a duplicate copy to the
4.   Persons entering membership in either system                 other system for informational purposes, clearly
     between July 1, 1980 and December 31, 1998                   labeled “COPY”.
     may not be eligible to convert unused sick leave
     credits to service credit at retirement.

We suggest you contact CalSTRS or CalPERS if
you have any specific questions or need
additional information relating to an employee’s
choice of coverage.

CalPERS/CalSTRS FAQ’s are available on
www.calpers.ca.gov. You can also receive the
publication “Join CalSTRS? Join CalPERS?” at
www.calstrs.com or by calling CalSTRS.

CALSTRS CONTACT INFORMATION
CalSTRS (800) 228-5453 or (916) 414-5040
(FAX) or www.calstrs.com




                                                        34
     CalPERS or CalSTRS?




35
                                     OVERTIME POSITIONS
G.C. section 20635 defines “overtime” as                 3. The participant works two full-time positions,
follows:                                                    either with the same employer (e.g.,
                                                            a school district) or with another CalPERS-
     “The aggregate service performed by an                 covered employer.
    employee as a member for all employers
    and in all categories of employment in                   ACTION: Both positions must be enrolled
    excess of the hours of work considered                   and reported to CalPERS. CalPERS will
    normal for employees on a full-time basis,               determine which position is overtime.
    and for which monetary compensation is
    paid.”                                               Additional Information
                                                         Pursuant to changes made to G.C. 20635 by
Part-time positions cannot, when added                   Senate Bill 53, Chapter 1297, Statutes of 1993,
together, generate more than full-time service           the treatment of more than one full-time position
and/or contributions to CalPERS. In most cases,          has been changed; the crucial distinction now is
CalPERS considers 40 hours a week to be the              whether the service in question was worked
standard full-time time base.                            before or after July 1, 1994:

In situations where a member is working two full-        •   BEFORE JULY 1, 1994: The member has
time positions, the position with the highest pay            the right to elect which of the two full-time
rate or base pay will determine what                         positions will be reported to CalPERS;
employment should be reported to CalPERS.                    CalPERS will, upon discovery of the second
                                                             full-time position, send the member an
With the implementation of my|CalPERS, all                   election allowing this choice to be made.
positions should be reported to CalPERS. This                If no election is made (i.e., if the member
means you should enroll the participant and                  does not respond to CalPERS’ notification of
submit payroll with contributions. CalPERS will              election rights), the employment with the latest
determine what employment is considered                      hire date will be deemed the non-reportable
overtime.                                                    “overtime” position.

If CalPERS determines that a position is                 •   AFTER JULY 1, 1994: The position with the
overtime, you will be instructed to reverse the              highest pay rate or base pay should be
overtime contributions for that participant.                 reported to CalPERS, with the other position
                                                             deemed the non-reportable “overtime”
The following scenarios illustrate proper                    position.
enrollment and reporting of participants when
working in multiple positions:                           If the service began before July 1, 1994 and
                                                         continues after July 1, 1994, the member will
1. The participant currently holds one full-time         have the election rights indicated above only for
   position subject to CalPERS, and accepts a            the service before July 1, 1994. Service after
   second concurrent part-time position.                 July 1, 1994 will require the position with the
                                                         highest pay rate to be reported to CalPERS.
    ACTION: The part-time position must be
    enrolled and reported to CalPERS.
    CalPERS will make the determination on
    which position is overtime.

2. The participant holds more than one part-
   time position with the same CalPERS
   covered employer.

    ACTION: All positions should be enrolled
    and reported to CalPERS.


                                                    36
              UPDATING EMPLOYEE DEMOGRAPHIC INFORMATION
To ensure consistent information between your              Please submit copies only to CalPERS as
agency, SCO, and CalPERS, you should                       originals cannot be returned.
validate and make any changes to your
employees’ demographic information via SCO’s               1. BIRTH CERTIFICATE or HOSPITAL BIRTH
Personnel Information Management System                       RECORD
(PIMS), as this will update both SCO’s and
                                                           2. CALIFORNIA DRIVERS LICENSE
CalPERS’ system automatically. This includes
changes to the following items:                            3. NATURALIZATION/PASSPORT (U.S. or
                                                              Canada).
•   Name
                                                           4. FOREIGN PASSPORT that includes a valid
•   Address
                                                              INS-94 form (record of arrival and
•   Social Security Number                                    departure).
•   Birth Date
•   Gender                                                 5. BORDER CROSSING CARD with a valid
                                                              INS-94 form (includes “Mica” and “Laser
                                                              Visa” border crossing cards).
BIRTH DATE CERTIFICATION REQUEST
                                                           6. CHURCH BAPTISMAL, CRADLE or
The Birth Date Certification Request (PERS-                   BLESSING RECORD that shows a date of
MEM-12) form is used to certify the correct                   birth and was established during the first few
member’s birth date. However, CalPERS may                     years of life.
contact you by phone instead of sending the                7. PRlMARY or SECONDARY SCHOOL
PERS-MEM-12 form.                                             RECORDS showing age at certain year or
                                                              birth date. Write to the Superintendent of
When to Complete                                              Schools to request records.
This form will be sent to your agency if CalPERS
discovers a birth date discrepancy. Whether                8. NATURALIZATION, PASSPORT or
CalPERS or your agency discovers the                          IMMIGRATION DOCUMENTS
discrepancy, please process as follows.                    9. RECORDS OF AGE OR BIRTH DATE
                                                              which are dated prior to 21st birthday, such
Instructions                                                  as church, fraternal order, insurance,
ACTIVE MEMBER                                                 hospital, medical, adoption, guardianship, or
• If this is the first time to correct the birth              newspaper notice of age.
    date, process the change by updating the
                                                           10. DELAYED BIRTH CERTIFICATE. Contact
    Personnel Information Management System
                                                               the state in which you were born to obtain a
    (PIMS) with the correct date of birth.
                                                               copy.
•   If a birth date correction has been previously         11. CENSUS RECORDS from federal or state
    requested, please notify CalPERS in writing                government—preferably the first two
    and include one of the “Acceptable                         censuses taken after date of birth.
    Documents” listed below with the request.
                                                           12. FAMILY BIBLE in which birth date was
                                                               recorded within reasonable period of time
INACTIVE MEMBER
                                                               after birth.
• If the participant has separated and notifies
   you that their birth date is incorrect, instruct        13. SOCIAL SECURITY CERTIFICATION
   the participant to provide CalPERS one of                   documents which show the date of birth that
   the “Acceptable Documents” listed below.                    has been established by the Social Security
                                                               Administration (contact the Social Security
Acceptable Documents                                           Office where you applied for Social Security
The following is the list of acceptable                        benefits).
documents, listed in the order of preference, to
be used in resolving a birth date discrepancy.


                                                      37
In the event that none of the above listed             MY|CALPERS     MEMBER SELF-SERVICE
documents are available, submit a written
request to the Customer Account Services               On July 30, 2012, CalPERS launched an
Division. If you have additional questions,            enhanced version of my|CalPERS for members
contact he CalPERS Customer Contact Center             to access their real-time account information.
at 888 CalPERS (or 888-225-7377).                      This enhancement allows members to see the
                                                       information submitted on their behalf by their
APPOINTMENT CHANGE NOTIFICATION FOR                    employers, including appointment, payroll, and
   EMPLOYER (CALPERS-INITIATED FORM)                   service credit information.

This Appointment Change Notification for the           Therefore, it is critical to stay current with
Employer (my|CalPERS 0850) form is used to             information reported to CalPERS on behalf of
                                                       your employees. Employer accuracy and
inform State Agencies of the following:
                                                       promptness will alleviate future concerns or
                                                       questions members may have with their
1. When the rate of contribution or effective
                                                       CalPERS account and the information provided
   date of membership must be changed or
   canceled;                                           by your agency.

2. To notify your agency to correct, through
   payroll credit procedures, non-members or
   overtime earnings reported in error;

3. To notify your agency to correct the Account
   Code and any earnings and contributions
   reported in error; and

4. To notify your agency when a member has
   made an election to change their tier.

SPECIAL INSTRUCTIONS
The my|CalPERS 0850 form is prepared by
CalPERS. Please update your agency records
as instructed on the form.




                                                  38
                           RECIPROCITY AND SIMILAR BENEFITS
FULL RECIPROCITY                                              RECIPROCAL PUBLIC AGENCIES
                                                              City of Concord
“Reciprocity” is an agreement among public                    City of Costa Mesa
retirement systems to allow members to move                       (Safety employees only)
from one public employer to another within a                  City of Fresno
specific time limit without losing valuable                       (Miscellaneous and Safety Retirement Systems)
retirement and related benefit rights.                        City of Los Angeles
                                                              City of Oakland
There is no transfer of funds or service credit                   (non-Safety employees only)
between retirement systems when an employee                   City of Pasadena
establishes reciprocity. The employee is a                        (Fire and Police Retirement Systems)
member of both systems and is subject to the                  City of Sacramento
membership and benefit obligations and rights of              City of San Clemente
each system, except as they are modified by the                   (non-Safety employees only)
reciprocity agreement.                                        City of San Diego
                                                              City and County of San Francisco
In order for all the benefits of reciprocity to apply:        City of San Jose
                                                              Contra Costa Water District
•   The member must have retired on the same                  County of San Luis Obispo
    day from each public retirement system                    East Bay Municipal Utility District
    participating in a reciprocal agreement.                  East Bay Regional Park District
•   The member must apply to retire from each                     (Safety employees only)
    system separately; this means that the                    Los Angeles County Metropolitan
    member will receive a separate retirement                     Transportation Authority
    allowance from each system.                                   (Non-Contract Employees’ Retirement
                                                                  Income Plan, formerly Southern California
CalPERS authority extends only to applying and                    Rapid Transit District)
implementing the California Public Employees’
Retirement Law; it does not extend to applying                NOTE:
and implementing the laws or regulations under                With the exception of the University of California
which other public retirement systems are                     Retirement System/Plan (UCRS), all of the
administered. Questions relating to rights,                   Reciprocal 1937 Act Counties and Reciprocal
benefits, and obligations under any of the other              Public Agencies have reciprocity with each other
public retirement systems should be addressed                 as a result of their having established reciprocity
directly to the appropriate system.                           with CalPERS.

For more information on reciprocity, download or              NON-RECIPROCAL & UCRS RETIREMENT
order a copy of When You Change Retirement
Systems (PERS-PUB-16) at www.calpers.ca.gov
                                                                 SYSTEMS
or by calling 888 CalPERS (or 888 225-7377).                  Non-reciprocal systems are not covered by
                                                              reciprocal retirement laws, but participate in
                                                              retirement agreements with other systems; UCRS
RECIPROCAL 1937 ACT COUNTIES                                  differs in aspects of its reciprocity as noted in this
Alameda                        Sacramento                     manual.
Contra Costa                   San Bernardino
Fresno                         San Diego                      State Teachers’ Retirement System
Imperial                       San Joaquin                    Legislators’ Retirement System
Kern                           San Mateo                      Judges’ Retirement System
Los Angeles                    Santa Barbara                  Judges’ Retirement System II
Marin                          Sonoma                         University of California Retirement System
Mendocino                      Stanislaus                         (includes the University of California
Merced                         Tulare                             Retirement Plan. Service rendered prior to
Orange                         Ventura                            October 1, 1963 was covered by CalPERS).

                                                         39
                                RECIPROCITY REQUIREMENTS
CONDITIONS FOR ACQUIRING THE BENEFITS OF                    IMPORTANT RESTRICTIONS
   FULL RECIPROCITY
Where CalPERS rights and benefits are                       Concurrent Employment: Reciprocity does not
involved, CalPERS will recognize reciprocity                apply when the employment under the first
upon movement between reciprocal retirement                 retirement system overlaps the employment
systems if the following requirements are met:              under the new system. For the benefits of
                                                            reciprocity to apply, the employee must have
1. The employee voluntarily elects reciprocity              been separated under the first system prior to
   and continues in membership in CalPERS                   joining the new system. This may be true even if
   by leaving his or her contributions (if any) on          the overlapping time is due to running out leave
   deposit (or by later re-depositing                       credits. The employee should check with their
   contributions he or she had withdrawn); and              current system and new system about their rules
                                                            before they change employment. If they are
2. The employee enters into employment that
                                                            concurrently employed we will use their highest
   results in membership in the new system
                                                            rate of pay under CalPERS when computing
   within six months of discontinuance of
                                                            their retirement allowance.
   employment as a member of CalPERS*;
   and
                                                            Refund Restriction: Some retirement systems
3. The employee must retire on the same date                may not allow the member to withdraw their
   under both systems by submitting a                       member contributions while they are employed
   retirement application to each system                    in a position covered by the California State
   respectively.                                            Teachers Retirement System (CalSTRS),
                                                            Judges’ Retirement System (JRS), Judges’
4. Certain exceptions may exist if the
                                                            Retirement System II (JRS II), Legislators’
   employee is employed under an
                                                            Retirement System (LRS), the University of
   independent public agency retirement                     California Retirement Plan (UCRP), or if, within
   system before the effective date of that                 six months of leaving State service, the member
   system’s reciprocal agreement with
                                                            entered employment covered by a system under
   CalPERS.
                                                            the County Employees’ Retirement Law of 1937
                                                            or covered by certain other public agency
*   Eligibility for reciprocity is determined by the
                                                            retirement systems.
    retirement laws in effect at the time of
    movement between employers and
                                                            New State Employees: State miscellaneous or
    retirement systems. Current CalPERS law
                                                            industrial employees hired for the first time on
    requires movement within six months.
                                                            August 11, 2004 through June 30, 2013* are
                                                            placed in the Alternate Retirement Plan (ARP)
A member should complete the “Election to                   administered by the Savings Plus Program in
Coordinate Retirement when Changing                         the California Department of Human Resources.
Retirement Systems” form in the When You                    They are excluded from ARP if they are
Change Retirement Systems booklet (PERS-                    members of a CalPERS reciprocal retirement
PUB-16).                                                    system (within the prior six months) or are a
                                                            member of JRS, JRS II, LRS, CalSTRS, or
                                                            UCRP.
                                                            *Pending legislation may change this date to
                                                            December 31, 2012.




                                                       40
                 RIGHTS AND BENEFITS WITH FULL RECIPROCITY
Eligibility for reciprocity is determined by the            4.   Pre-retirement Death Benefits: If the
retirement laws in effect at the time of movement                member dies prior to retiring while
between employers and retirement systems.                        employed as a member of another system,
The information contained here expresses                         a lump-sum Basic Death Benefit consisting
current CalPERS law.                                             of a return of their CalPERS retirement
                                                                 contributions will be payable to a
1.   Final Compensation: Use highest                             beneficiary. The total paid by both systems
     compensation earnable under any system in                   cannot exceed the maximum lump-sum
     computing final compensation if retirement                  benefit allowable if all service had been
     from all systems is concurrent.                             under the other system.

     NOTE:                                                       If the member is a Safety member of
     An exception to this would be if the member                 CalPERS and the death is job-related, the
     retires on a service retirement from another                monthly Special Death Benefit allowance
     system before they have met the CalPERS                     may be payable to a qualifying survivor.
     minimum retirement age, they can later
     retire under CalPERS, and CalPERS will still           5.   Membership Rate Age: Miscellaneous
     use the member’s highest rate of pay under                  members and most Safety members in
     any of the systems.                                         CalPERS have retirement formulas with a
                                                                 fixed rate of contribution and are not
     If the member became an elective or                         affected by their age at entry into the other
     appointed officer after July 1, 1994, we will               system. However, other systems may use
     use the highest rate of pay under CalPERS.                  age at entry for their contribution rate. The
                                                                 member should check with the appropriate
2.   Qualification for Benefits: Service in the                  system for information.
     other system may be used to meet minimum
     service requirements for benefits.                     PUBLIC EMPLOYEES’ PENSION REFORM ACT OF
                                                               2013 (PEPRA)
3.   Disability Retirement: If the member is                As a result of PEPRA, effective January 1, 2013,
     eligible for disability retirement from another        CalPERS will consider movement between
     system (or disability income from the                  California Public Retirement Systems that are
     University of California Retirement Plan)              subject to reciprocity when we determine which
     they may be entitled to CalPERS disability             benefit formula applies to your employees.
     retirement benefits, if they retire from both          Employees should refer to their member benefit
     systems on the same date. CalPERS would                publication for more information on new member
     pay an amount that does not exceed the                 benefit formulas mandated by PEPRA.
     difference between the amount that would
     be paid by the other system if all of the
     member’s CalPERS service were under that
     system, and the amount actually paid under
     the other system, but not less than an
     annuity that is the actuarial equivalent of the
     member’s contributions.

     When retirement under the other system is
     for disability arising out of and in the course
     of employment under the other system,
     CalPERS pays an annuity that is the
     actuarial equivalent of the member’s
     contributions.




                                                       41
         CALPERS BENEFITS FOR NON-QUALIFYING INDIVIDUALS
Even if the member does not qualify for full                 •    Vesting: If the employee is a CalPERS
reciprocity, CalPERS offers redeposit rights,                     member who is also a member of a
vesting, and University of California Retirement                  reciprocal retirement system, they are
Plan final compensation.                                          eligible to retire from CalPERS without
                                                                  meeting the CalPERS minimum service
In addition, if their employer established a                      credit requirement (but they must still meet
reciprocal agreement with CalPERS after they                      the minimum age requirement).
changed membership, and they would have been
eligible for reciprocity had an agreement been in                NOTE:
effect at the time of their membership change,                   Vesting requirements of the other systems
their retirement allowance will still be based on the            must be met in order to retire concurrently
highest final compensation under either system,                  from each system. Contact the other
as long as they retire on the same date under both               retirement system to determine their
systems.                                                         retirement requirements.

•   Redeposit Rights: If the employee withdrew               •    University of California Retirement Plan
    their CalPERS contributions and interest and                  Final Compensation: The average pay
    later joined a reciprocal retirement system,                  rate during any 12-month or 36-month
    they can re-establish CalPERS service credit                  period of employment with the University
    and membership by making a redeposit.                         of California will be used for computing
                                                                  final compensation, if the member retires
•   Refund Restriction: The member may not                        from both systems on the same date.
    withdraw their CalPERS Contributions once
    they have entered employment covered by the
    University of California Retirement Plan
    (UCRP) or if, within six months of leaving
    State service, they entered employment
    covered by a system under the County
    Employees’ Retirement Law of 1937 or
    covered by certain other public agency
    retirement systems.




                                                        42
   CALPERS BENEFITS ARISING FROM MOVEMENT TO RECIPROCAL
   AND CERTAIN NON-RECIPROCAL PUBLIC RETIREMENT SYSTEMS
There is no formal reciprocity agreement                  VESTING
established between CalPERS and the following             A CalPERS member who is a member of
systems:                                                  CalSTRS, LRS, JRS, or JRS II is eligible to
                                                          retire from CalPERS without meeting the
• California State Teachers’ Retirement                   CalPERS minimum service credit requirement
  System (CalSTRS)                                        (but must still meet the minimum age
• Legislators’ Retirement System (LRS)                    requirement).
• Judges’ Retirement System (JRS)
• Judges’ Retirement System II (JRS II)                   DISABILITY RETIREMENT
                                                          There is no provision for CalPERS disability
However, the following benefits and                       retirement when a member is eligible for a
requirements apply to CalPERS members who                 disability retirement benefit from CalSTRS,
enter employment with these systems.                      LRS, JRS, or JRS II. They must instead take
                                                          a CalPERS service retirement from the other
FINAL COMPENSATION                                        system in order for the provisions of final
CalPERS will compute the member’s final                   compensation to apply.
compensation based on the highest rate of pay
under CalSTRS, LRS, JRS, JRS II, or CalPERS               If they retire on a disability retirement from the
during any consecutive 12-month or 36-month               other system before they have met the CalPERS
period of service as long as they retire on the           minimum service retirement age, they can later
same date under both systems. (If a member                retire under CalPERS. We will use their highest
became an elective or an appointed officer on or          CalPERS pay rate to determine their final
after July 1, 1994, we will use their highest rate        compensation amount.
of pay under CalPERS).
                                                          If they will be receiving a disability allowance
REDEPOSIT RIGHTS                                          from CalSTRS, they can take a service
                                                          retirement from CalPERS at the same time (if
A member of CalSTRS, LRS, JRS, or JRS II
                                                          they meet the minimum retirement age) OR at
may redeposit in CalPERS previously withdrawn
                                                          age 60, when the disability allowance under
CalPERS contributions in order to reestablish
                                                          CalSTRS is changed to a service retirement.
service credit in this system.
                                                          Either way, they are considered to have retired
To receive this credit, a member’s election must          on the same date under both systems, and
                                                          CalPERS will compute their final compensation
be filed with CalPERS before their retirement is
                                                          based on the highest rate of pay under either
effective (G.C. section 21032). The employee
                                                          system.
should request cost information at least one year
prior to their retirement date to ensure accurate
and timely payment of benefits.

The right to redeposit contributions is not one of
the uniform reciprocal provisions; it varies
among the different public retirement systems.
Contact the particular retirement system to learn
of its policy regarding re-depositing.

REFUND RESTRICTION
A member’s CalPERS contributions may not be
withdrawn while the member is in active
employment as a member of CalSTRS, LRS,
JRS, or JRS II.


                                                     43
        HOW TO NOTIFY CALPERS WHEN THE MEMBER CHANGES
                      RETIREMENT SYSTEMS
When the employee becomes a member of a                    JRS, JRS II, AND LRS MEMBERS
reciprocal or non-reciprocal public retirement             my|CalPERS will be modified to remove LRS
system they can notify CalPERS by one of the               enrollment as an option for new members.
following methods:                                         Effective January 1, 2013, the newly elected or
                                                           appointed Constitutional Officer, Insurance
•   Complete the Election to Coordinate                    Commissioner and Legislative Statutory Officers
    Retirement When Changing Retirement                    are only eligible for optional CalPERS
    Systems form in the When You Change                    membership. The current enrollment process that
    Retirement Systems booklet (PUB-16).                   allows new members to elect optional membership
                                                           into CalPERS will not change.
•   Complete one of the forms in the CalPERS
    Refund Election Package (public agency or              Contact the Judges’ or Legislators’ Retirement
    school employees) or the separation                    System directly when an employee becomes a
    document (State employees) when separating             member of a reciprocal or non-reciprocal public
    from CalPERS-covered employment.                       retirement system:

Please direct requests for information or inquiries        Judges’ & Legislators’ Retirement System
to:                                                        P.O. Box 942705
                                                           Sacramento, CA 94229-2705
CalPERS                                                    (916) 795-3688
Customer Account Services Division                         (916) 795-1500 — FAX
Attn: Unit 841
P.O. Box 942704                                            LONG-TERM CARE PROGRAM MEMBERS
Sacramento, CA 94229-2704                                  If the member is enrolled in the CalPERS Long-
                                                           Term Care Program and has premiums deducted
For more detailed information on reciprocity,              from their check, they should call the program’s
refer to When You Change Retirement Systems                Customer Service Center at (800) 982-1775 to find
publication (PUB-16).                                      out what steps they need to take to continue their
                                                           premiums.




                                                      44
                         SERVICE CREDIT PURCHASE OPTIONS
SERVICE CREDIT                                             •   Military Service Credit (Military)
Service credit represents the accumulated                  •   Redeposit of Withdrawn Contributions
amount of your employee’s service time at work                 (Redeposit)
or on paid status under their CalPERS-covered              •   Peace Corps or AmeriCorps*Vista Service
employer or employers, counted on a fiscal year            •   Sabbatical Leave
basis.                                                     •   Service Prior to Membership (SPM)

Service credit is one of three prime factors used          For Military, Redeposit, and SPM, a cost
to calculate an employee’s retirement benefit,             estimate must be attached to the service credit
along with their retirement formula and final              purchase request form. Member access to
compensation.                                              Military, Redeposit, and SPM online request
                                                           forms will be restricted to those who use the
For a complete list, please refer to the CalPERS           Cost Estimator to generate an estimate.
publication A Guide to Your CalPERS Service                Request forms are available for download on the
Credit Purchase Options available in the                   Cost Estimator Results Page, once a member
CalPERS Forms & Publications Center online or              has generated an estimate for the following
by calling 888 CalPERS (or 888-225-7377).                  service credit purchase types:

EMPLOYER COST                                              •   Redeposit of Withdrawn Contributions
The service credit purchases where employers               •   Service Prior to Membership
are actually billed are:                                   •   State and Schools Military/Public Agency
• Member-Paid Arrears (for the employer                        Military
    share)
• Employer-Paid Arrears (for the member and                To request the purchase of Military, Redeposit,
    employer share)                                        and SPM, members should follow these steps to
• Settlement Agreement (Employers may pay                  obtain an estimate and the request form:
    a percentage, up to 100%, of the member’s
    share of contributions and interest due in             •   Visit the CalPERS Website at
    addition to the employer share.)                           www.calpers.ca.gov.
                                                           •   Search for the Service Credit Cost
For other service credit purchases, the employer               Estimator.
liability is funded by the actuarial evaluation and        •   Complete a cost estimate for the appropriate
setting of the employer rate based on the                      service credit type.
service that has been posted to employer.                  •   Print out the service credit cost estimate
                                                               from the results page.
Service Credit Cost Estimator                              •   Select the link to download the Service
                                                               Credit Cost Request form.
The Service Credit Cost Estimator tool (Cost               •   Complete the request form and mail it to
Estimator) provides members a cost estimate for                CalPERS along with the printed cost
purchasing various types of service credit. The                estimate.
Cost Estimator is located on the CalPERS
Website at www.calpers.ca.gov, or members                  Additionally, your agency may receive requests
may visit their local CalPERS Regional Office to           to certify employment history and payroll
utilize the self-service computer, in order to             information for employees wishing to purchase
generate an online cost estimate and access the            service credit. Any requests received by
required request forms from the results page,              CalPERS without the required employer
when applicable. The Cost Estimator can                    certification and/or attached cost estimate will be
calculate a cost estimate for the following types          returned to the member as incomplete and the
of service credit:                                         request will be closed.

•   Alternate Retirement Program
•   Maternity/Paternity Leave of Absence


                                                      45
                                                                  Service Credit Purchase Options


REDEPOSIT                                                 5. Those optional elective officers, Governor
Members of this System have the right to                     appointees, and Legislative employees who
redeposit contributions previously withdrawn                 are excluded because of their failure to
from CalPERS. The redeposit of withdrawn                     exercise their right of election of
contributions restores service credit for previous           membership under G.C. sections 20320,
employment. The member must redeposit the                    20322, 20324, or 21021 and are no longer
amount withdrawn, plus a sum equal to the                    working in an “optional” position. If still in an
interest, which would have accrued, had the                  “optional” position, refer to the “Optional
member’s funds been left on deposit. Interest                Members of CalPERS” section.
will be charged from the first of the month
following the date of withdrawal to the date of           NOTE: To receive this credit, a member’s
final payment. Payments may be made in one                request must be filed with CalPERS before their
lump sum or by installment payments, or by a              retirement effective date (G.C. sections 21020
combination of an initial partial lump sum                and 21028).
payment and the balance by installment
payments.                                                 VERIFICATION OF SERVICE PRIOR TO
                                                             MEMBERSHIP
NOTE: To receive this credit, a member’s
                                                          When members request to purchase SPM, they
request must be filed with CalPERS before their
                                                          obtain a “Request for Service Credit Cost
retirement effective date (G.C. sections 20750
                                                          Information Service Prior to Membership,
and 20752 to 20756).
                                                          CETA & Fellowship” form (PERS-MSD-370)
                                                          available through the Service Credit Cost
A member, whose ex-spouse received a portion              Estimator results page. On this form, members
from the member’s account as part of a                    must indicate the prior employer information
community property judgment or settlement                 including the period of employment and the
AND took a refund of the contributions, can               hours and time base worked per month. If this
redeposit those funds in CalPERS.                         employment is with a State agency that reports
                                                          payroll through the State Controller’s Office
NOTE: To receive this credit, a member’s                  (SCO) or with the California State University, the
request must be filed with CalPERS before their           form is sent directly to CalPERS for processing.
retirement effective date (G.C. section 20751).           If this employment is with a non-SCO State
                                                          agency, public agency, or School District, this
SERVICE PRIOR TO MEMBERSHIP                               form is sent to that employer for certification.
“Service prior to membership” (SPM) is service            The employer either certifies they concur with
rendered after the date of contract between a             the information provided by the member, or
public agency, State, or School District and the          follows directions on the form to input the correct
System, but before the employee entered                   employment information, then forwards the
CalPERS membership. Election to contribute for            completed form to CalPERS.
SPM will result in additional service credit.
Persons who were employed under the following             PUBLIC SERVICE AND LEAVES OF ABSENCE
conditions are eligible for service prior to              There are certain conditions where some leaves
membership:                                               of absence and some public employment may
1. Those who worked the six months                        be creditable under CalPERS. Questions on
    membership qualification period prior to July         these types of service credit should be referred
    18, 1961.                                             to CalPERS by following the instructions noted
2. Those who worked the part-month                        in the “Inquiries Section”. To receive this credit,
    membership qualification period between               a member’s written request must be filed with
    July 18, 1961 and October 1, 1963.                    CalPERS before their retirement effective date.
3. Those employed less than 87 hours per
    month, or less than an average of 20 hours
    per week, prior to becoming a member.
4. Those formerly employed in temporary or
    seasonal employment in which they were
    excluded from membership under G.C.
    section 20305.

                                                     46
                                                                   Service Credit Purchase Options


PRESENT VALUE SERVICE CREDIT PURCHASES                     1. Currently be employed with or retired
                                                              directly (within 120 days of separation) from
NOTE: Although no action is required on your                  the State or School employment.
part, this information may be useful in answering          2. Must have a minimum of one year of
questions about service credit purchase options               CalPERS service and one year of military
asked by your employee’s.                                     service. Service is granted on a basis of one
                                                              year of military service credit for each year
Additional Retirement Service Credit                          of credited CalPERS service credit, not to
    (ARSC – Air Time)                                         exceed four years.
As a result of the Public Employees’ Pension
Reform Act of 2013 (PEPRA), ARSC has been                  3. Make election to purchase the service credit.
eliminated as a service credit purchase option.            4. In addition, State and School retirees must
Any complete and acceptable requests received                 have retired on or after December 31, 1981.
at CalPERS prior to January 1, 2013, will be
processed. Due to the high volume of requests,             5. Members with Public Agencies which have
processing times may vary and take several                    contracted for military service benefits under
months. If you have received an ARSC election                 G.C. sections 21024 (for active members)
package, be sure CalPERS receives your                        and 21027 (for retired members) may also
completed signed election prior to the expiration             be eligible to receive credit for their military
date specified on the election form, as you will              service. Retired members must have retired
not have another oppportunity after January 1,                directly within 120 days of separation from
2013. If you have already elected to purchase                 Public Agency employment and before the
ARSC, your purchase will not be impacted.                     effective date of the election by his or her
                                                              employer to be subject to section 21027.
Peace Corps, Americorps Vista, and                            Employers contracting for 21027 must have
     Americorps                                               also contracted for 21024. For more
A member may be eligible to purchase credit for               information on Public Agency military,
up to three years of service in the Peace Corps,              consult the CalPERS Website
AmeriCorps VISTA (Volunteers In Service To                    www.calpers.ca.gov or Service Credit
America) or AmeriCorps. The member must be                    Purchase Options (PUB-12).
able to provide CalPERS with documentation
certifying their dates of service. If the member           NOTE:
does not have a certification letter, one may be           To determine eligibility, a copy of the discharge
requested from:                                            or other document (such as DD214) indicating
                                                           the beginning and ending dates of active duty
Peace Corps                                                must be submitted to the system.
Attn: Certifying Officer
Volunteer & Staff Payroll Services Division                A copy of the discharge document can be
1111 20th Street, NW                                       obtained from the National Personnel Records
Washington, DC 20526                                       Center, Military Personnel Records, 9700 Page
                                                           Avenue, St. Louis, MO 63132-5100. The
AmeriCorps Vista                                           member can also complete and mail in the
Attn: CNCS/AmeriCorps Vista Certifying Officer             Standard Form 180, available on their website at
1201 New York Avenue, NW                                   www.nara.gov/regional/mprsf180.html.
Washington, DC 20525
For all other AmeriCorps service, the member
needs to contact the program they worked for to
request a certification letter.

Credit for Military Service Prior to Employment
G.C. section 21029 provides that State and
School employees and retirees may be eligible
to receive credit for their military service. To be
eligible the member or retiree must:



                                                      47
                                                                 Service Credit Purchase Options


Alternate Retirement Program (ARP)                           six months after discharge, they may not be
State members who meet these conditions                      eligible to purchase this service credit.
would be eligible to purchase their ARP service
credit if they:                                          EXCLUDED POSITIONS
                                                         If the requested employment is excluded by law,
•   Were a new State miscellaneous or                    the purchase of this service credit is not
    industrial employee hired on August 11,              possible. If the exclusion was removed or
    2004 through June 30, 2013*, and                     superseded by law after the employment was
•   Have reached the conclusion of their three           rendered, service credit rights would depend on
    month ARP election period and did not elect          the Government Code provisions under which
    to convert their ARP time to CalPERS                 the exclusion was removed. Please refer to the
    service credit; or                                   excluded section for more information.
•   Received a distribution of ARP funds after
    separating from State service, but prior to          PAYMENT METHODS
    their three-month election period; or                A member may elect, at any time prior to
•   Had ARP funds distributed to a former                retirement, to make contributions for redeposit or
    spouse or domestic partner while funds               other types of eligible service credit. If a member
    were being maintained by CalHR.                      elects a cash lump-sum payment, no notification
                                                         will be sent to the employer.
*Pending legislation may change this date to
December 31, 2012.                                       If a member files an election to redeposit or
                                                         contribute for service prior to membership or
The cost for Peace Corps, AmeriCorps,                    other “public service” by installment payments,
AmeriCorps VISTA, Military Service Prior to              the System will certify and approve the election
Employment, and ARP service is based on                  and send the agency an authorization for payroll
current pay rate, the amount needed to fund the          deductions. No deductions should be made until
benefit, and how much service credit is being            the authorizing PERS-MEM-823A form is
purchased.                                               received.

Credit for Absence from Employment for                   The agency must apply the payroll adjustments
    Military Service                                     authorized after the effective date and continue
G.C. sections 20990 through 20998 provide that           until payments are completed or the employee
a members whose absence from employment                  separates from employment. The member
for military service may be eligible to receive          should contact CalPERS for information on
service credit for the absence at employer cost.         continuing payments after separation, unless a
The employer does not need to amend its                  refund of all contributions is requested.
contract for the benefit. To be eligible for this
service credit the member must have:                     At retirement, any unpaid balance may be paid
                                                         by lump sum or may be continued as a
1. Been in the employment of a CalPERS                   deduction from the retirement allowance (G.C.
   covered agency prior to entering military             section 20776).
   service.
2. Been granted a military leave or have
   resigned from employment for the purpose
   of entering active duty into military service.
3. Entered active duty within 90 days after
   leaving agency employment.


4. Returned to employment with the same
   agency, the State, or another agency
   contracting with CalPERS within six months
   after discharge from active duty. If the
   member did not return to employment within


                                                    48
                                                        Service Credit Purchase Options


INQUIRIES
The member may obtain cost information
concerning redeposit, SPM or other “public
service” by completing the appropriate form. The
forms can be obtained from the Guide to your
CalPERS Service Credit Purchase Options
(PUB-12) or from the CalPERS Website at
www.calpers.ca.gov. The following is a list of
the forms:

•   Redeposit of Withdrawn Contributions—
    PERS-MSD-368
•   Military Service — PERS-MSD-369
•   Service Prior to Membership, CETA &
    Fellowship Service — PERS-MEM-370
•   Leave of Absence — PERS-MSD-371
•   Layoff, Prior Service & Optional Member
    Service — PERS-MSD-372
•   Peace Corps, AmeriCorps*VISTA or
    AmeriCorps Service — PERS-MSD-373
COST ESTIMATE
Members can use the on-line Service Credit
Cost Estimator on the CalPERS Website
www.calpers.ca.gov to obtain an estimate of
the cost of purchasing the following types of
service credit:

•   Redeposit of Withdrawn Contributions
•   Service Prior to Membership
•   Military Service Credit
•   Maternity/Paternity Leave of Absence
•   Peace Corps or AmeriCorps*Vista Service
•   Sabbatical Leave
•   Alternate Retirement Program




                                                   49
THIS PAGE INTENTIONALLY LEFT BLANK




                                     50
                                                  CSU ONLY MEMBERSHIP
                                                   TABLE OF CONTENTS

The California State University ................................................................................................................ 53

           Overview ........................................................................................................................................ 53

           Retirement Programs ..................................................................................................................... 53

           Membership Eligibility .................................................................................................................... 54

           Membership Chart.......................................................................................................................... 55

           Account Code Chart ....................................................................................................................... 56

           Benefits .......................................................................................................................................... 57

           CSU Retiree Dental........................................................................................................................ 57

           Faculty Programs — Early Retirement, Reduced Time Base and Leaves .................................... 57

           Faculty Early Retirement Program (FERP) .................................................................................... 57

           Pre-Retirement Reduction in Time Base (PRTB) .......................................................................... 58

           Sabbatical Leaves .......................................................................................................................... 58

           Difference in Pay (DIP) Leaves ...................................................................................................... 58

           Contacts ......................................................................................................................................... 59


The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may
be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in
effect, not this publication, controls the application of the Public Employees' Retirement Law. It is the
reader's responsibility to independently verify the accuracy of the information contained in this publication
before engaging in a course of action.




                                                                              51
THIS PAGE INTENTIONALLY LEFT BLANK




                                     52
                        THE CALIFORNIA STATE UNIVERSITY
OVERVIEW
The California State University (CSU) is comprised           3% @ 55 formula. Employees who were active
of 23 campuses and the Office of the Chancellor,             on/after January 1, 2002 and are first hired by the
which is the administrative headquarters for the
CSU system. Responsibility for the CSU is vested             State prior to July 1, 2011 are subject to the 3% @
in the Board of Trustees, whose members are                  50 formula and a one year final compensation.
appointed by the Governor. The Trustees appoint
the Chancellor, who is the chief executive officer           2. Peace Officer/Firefighter (POFF) 2.5% @ 55
of the system, and the Presidents, who are the               All State employees first hired by the State
chief executive officers on the respective                   on/after July 1, 2011 who are appointed to or
campuses. The CSU employs over 45,000 faculty                transfer to a POFF position in either a
and staff.                                                   Management Personnel Plan (MPP) covered
                                                             position or into a position covered by the CSU –
Please note that while the CSU is considered a               State University Police Association (SUPA – Unit
state agency, it is not part of the civil service            8) are subject to the 2.5% @ 55 POFF formula
structure and, as a result, is not covered by the            and a three year final compensation period. Refer
rules and regulations of the California Department           to the State Safety Benefits publication for
of Human Resources. Generally, the CSU is                    retirement program information covering CSU
governed by different Government Code sections               public safety employees.
than civil service, in addition to the Education
Code and Title 5 regulations. The Office of the              3. State Safety 2.5% @ 55
Chancellor is responsible for developing policy              Effective July 1, 2001, Police Officer, Intermittent
governing the CSU.                                           employees in the E99 collective bargaining unit
                                                             became subject to the 2.5% @ 55 State Safety
Under the purview of the Higher Education                    formula. Employees who were active on/after July
Employer - Employee Relations Act (HEERA),                   1, 2001 and first hired by the State prior to
CSU employees are designated into the following              January 15, 2011 are subject to the 2.5% @ 55
employee categories: Executive (E98),                        POFF formula and a one year final compensation.
Management Personnel Plan (MPP) (M80),                       Refer to the State Safety Benefits publication for
Confidential (C99), Excluded (E99) employees                 retirement program information covering CSU
and ten (10) separate collective bargaining units            public safety employees.
(R01-R10). These collective bargaining units are
separate and distinct from the unions representing           4. State Safety 2% @ 55
civil service employees. A list of the current unions        All State employees first hired by the State
and their agents is provided.                                on/after January 15, 2011 who are appointed to or
                                                             transfer to a Police Officer, Intermittent position in
RETIREMENT PROGRAMS                                          the E99 collective bargaining unit are subject to
Eligible CSU employees participate in one of six             the 2% @ 55 State Safety formula and a three
CalPERS retirement programs:                                 year final compensation period. Refer to the State
                                                             Safety Benefits publication for retirement program
1. Peace Officer/Firefighter (POFF) 3% @ 50                  information covering CSU public safety
Effective January 1, 2002, covered eligible active           employees.
Management Personnel Plan (MPP) public safety
employees and public safety employees covered                5. State Miscellaneous 2% @ 55
by the CSU - State University Police Association             All other eligible employee categories. Refer to the
(SUPA – Unit 8) agreement who were hired by the              State Miscellaneous & Industrial Benefits
State prior to July 1, 2011. Refer to the State              publication for retirement program information.
Safety Benefits publication for retirement program           State employees first hired by the State prior to
information covering CSU public safety                       January 15, 2011 are subject to the 2% @ 55
employees. Those safety members who were                     State miscellaneous formula and a one year final
inactive as of January 1, 2002 remain under the              compensation period.




                                                        53
                                                                               The California State University


6. State Miscellaneous 2% @ 60                              3. Temporary Faculty Eligibility Rules:
All State employees hired on/after January 15,
2011 who are appointed to or transfer to a                       If appointed for an academic year at full-
miscellaneous position are subject to the                         time, the employee qualifies for CalPERS
2% @ 60 miscellaneous formula and a three                         membership at the time of the appointment.
year final compensation period. Refer to the
State Miscellaneous & Industrial Benefits                        If appointed for an academic year at half-
publication for retirement program information.                   time or more, the employee qualifies for
                                                                  membership at the beginning of the third
MEMBERSHIP ELIGIBILITY                                            consecutive semester or at the beginning of
                                                                  the fourth quarter (G.C. 20305 [a][4]).
1. Excluded from CalPERS membership for the
                                                                 If appointed for a non-academic year (e.g.
first six months. If employment extends beyond six
                                                                  10-month or 12-month), CalPERS
months, membership is mandatory, effective not
                                                                  membership rules follow the same eligibility
later than the first day of the seventh month of
                                                                  criteria as staff appointment types.
employment. The employer is responsible for
monitoring the employment period (G.C. 20305                     For additional information, refer to Technical
[a][3][A]).                                                       Letter HR/Benefits 2003-27 on the CSU
                                                                  System wide Human Resources Website.
2. Excluded until employee works 1000 hours (or
125 days if paid on a per diem basis) in a fiscal
year (July 1st through June 30th). Membership is            Specific questions concerning retirement
mandatory, effective not later than the first of the        membership should be directed to the CalPERS
month following the month in which 1000 hours (or           Customer Contact Center at 888 CalPERS (or
125 days) is completed. Overtime worked is                  888-225-7377).
included when counting hours or days for
purposes of determining qualifying membership.
The employer is responsible for monitoring the
number of hours worked (G.C. 20305[a][3][B]).




                                                       54
                               CSU MEMBERSHIP CHART
STATUS               APPOINTMENT TYPE                MEMBERSHIP    INITIALLY     EXCLUDED
                                                     MANDATORY     EXCLUDED,
                                                     AT TIME OF    BUT MONITOR
                                                     APPOINTMENT   TIME WORKED
CURRENT              Summer session or inter-              YES
CalPERS              session academic
MEMBER (Actively     employment if the employee
contributes or has   is NOT otherwise fully
funds on deposit     employed
or has service       (G.C. 20300 [k])
credits.)            Appointments OTHER                  YES
                     THAN those listed below in
                     EXCLUDED status
EXCLUDED             Employees covered by State                                    YES
(Regardless of       Teachers Retirement
current              System
membership           (G.C. 20300 [g])
status.)             Student Assistants                                            YES
                     (G.C. 20300 [c])
                     Extension faculty whose                                       YES
                     compensation is based on
                     class enrollment
                     (G.C. 20300 [j])
                     Summer session or inter-                                      YES
                     session academic
                     employment if the employee
                     IS otherwise FULLY
                     employed
                     (G.C. 20300 [k])
                     Independent Contractor                                        YES
                     (G.C. 20330[b])
                     Individuals employed as                                       YES
                     result of Job Training
                     Partnership Act of 1982,
                     CETA miscellaneous
                     position on or after 7-1-79.
                     (May buy-back earlier
                     service.) (G.C. 20330 [f])




                                                    55
                                                                                    CSU Membership Chart

 STATUS                APPOINTMENT TYPE                MEMBERSHIP            INITIALLY        EXCLUDED
                                                        MANDATORY           EXCLUDED,
                                                        AT TIME OF         BUT MONITOR
                                                       APPOINTMENT         TIME WORKED
 NOT A CURRENT         Full-time appointment for           YES
 MEMBER (Was           more than 6 months
 never a member or     (G.C. 20305 [a][3][A])
                                                                                      1
 had contributions     Full-time appointment for                                YES
 refunded).            less than 6 months
                       (G.C. 20305 [a][3][A])
                       Works an average of 20                YES
                       hours per week;
                       appointment is for 1-year or
                       longer
                       (G.C. 20305 [a][2])
                                                                                      2
                       Works less than 20 hours                                 YES
                       per week
                       (G.C. 20305 [a][3][B])
                                                                                      2
                       Irregular basis appointment                              YES
                       (seasonal, emergency,
                       hourly intermittent,
                       substitute, special
                       consultant, on-call, limited
                       term, etc)
                       (G.C. 20305 [a][3][B])
                                                                  3
                       Temporary faculty (A-52              YES
                       appointment) for one
                       academic year at full-time
                                                                                      3
                       Temporary faculty (A-52                                  YES
                       appointment) for one
                       academic year at part-time
                                                                                      3
                       Temporary faculty (A-52                                  YES
                       appointment) for semester/
                       quarter at full-time
                                                                                      3
                       Temporary faculty (A-52                                  YES
                       appointment) for semester/
                       quarter at part-time

ACCOUNT CODE CHART

For a list of the Retirement Benefit Formula Account Code Tables, please select the following link:
http://www.calpers.ca.gov/eip-docs/employer/admin-rptg/ret-benefit-formula.xls

Specific questions concerning membership eligibility should be directed to the CalPERS Customer Contact
Center at 888 CalPERS (or 888-225-7377).




                                                      56
BENEFITS
CSU retirees receive the following benefits:               same rank and salary held prior to retirement. In
• Full health benefits upon retirement at age 50           order to be eligible, the employee:
   with 5 years of service credit and;                     • Must be at least age 55;
• Coverage under a basic dental plan paid for              • Must be eligible for service retirement;
   by the CSU.                                             • Must be granted service retirement; and
• Faculty Early Retirement Program (FERP)                  • Shall be entitled for no more than 5 years.
   participants continue enrollment in an
   enhanced dental plan and receive the CSU                The assignment shall be one (1) academic term
   vision benefit if appointed half time or more.          not to exceed a total of ninety (90) days or fifty
   Upon completion of the FERP service, the                (50) percent of the employee’s hours worked (time
   retiree drops to a basic dental plan and is not         base) in the fiscal year proceeding retirement,
   eligible for vision coverage.                           whichever is less. Participants may request further
                                                           reduction in time base; however, the reduction
CSU RETIREE DENTAL                                         shall continue for the duration of the FERP
Under certain conditions, CSU employees are                appointment.
eligible to continue dental coverage into
retirement. The dental coverage provided to CSU            Participation in FERP shall commence at the
retired annuitants is at the Basic plan level.             beginning of the campus academic year. Service
Participants in FERP are the only CSU retired              retirement shall begin concurrently with or prior to
annuitants eligible for continued dental coverage          the beginning of the campus academic year.
at the Enhanced level.
                                                           Participants may be appointed in university
The CSU offers two dental plans: a DMO (prepaid)           extension (consistent with the CSU Additional
plan through PMI DeltaCare and an indemnity plan           Employment policy) during the academic term(s)
through Delta Dental. Currently, the CSU pays the          under FERP. Other CSU additional employment is
full cost of dental coverage for all CSU retired           not allowed.
annuitants and their eligible dependents, including
domestic partners.                                         Continued employment in the FERP shall
                                                           terminate in the event of dismissal for cause,
                                                           layoff, or failure to meet the employment
Responsibility for the day-to-day dental contract          commitment.
administration rests with Human Resources
Administration in the CSU Chancellor’s Office.             In addition to the retirement pay appropriate to the
Human Resources Administration interprets                  age and years of service at the time of retirement,
regulations, answers questions, and assists                participants are paid for the teaching assignment
retirees in resolving problems regarding the dental        on a pro-rata basis, in accordance with the rank
plan.                                                      and salary held at the time of retirement.

CalPERS is responsible for processing the annual           Since participants are retired, no service credit is
retiree dental open enrollment requests, and other         accumulated through this program. For this same
change requests. Detailed information regarding            reason, there is no retirement contribution or
the CSU dental program is available in the CSU             Social Security withholding. To ensure this, report
Dental Program Administrative Manual.                      the FERP appointment using the Appointment
                                                           Code of “A56” on the PIMS report.
FACULTY PROGRAMS — EARLY RETIREMENT,                       Sick leave is converted to service credit upon
REDUCED TIME BASE AND LEAVES                               retirement; however, up to 48 hours of sick leave
The CSU has several retirement-related programs            may be carried into FERP.
unique to faculty employees.
                                                           Participants are ineligible for sabbatical leaves or
Faculty Early Retirement Program (FERP)                    other paid leaves.
The Faculty Early Retirement Program permits
tenured faculty or tenured librarian employees who         FERP participants are eligible to receive CSU
retire the ability to work one semester or an              vision coverage and an enhanced dental plan.
average percentage for the academic year, at the


                                                      57
Upon completion, the dental plan reverts to the              Faculty on sabbatical leave are considered in work
basic plan and vision coverage is eliminated.                status and entitled to the same provisions of
                                                             employment and applicable benefits provided by
Pre-Retirement Reduction in Time Base (PRTB)                 the CSU in the same manner as if the employee
Tenured faculty in bargaining unit 3 with 10 years           were not on a sabbatical leave. However, service
of full-time service (with at least the last 5 years         credit towards retirement will be reduced
being continuous full-time) is eligible to apply for         according to the earnings the employee will
the PRTB program. Sabbatical leaves count                    receive.
towards the service requirement. Applicants must
be 55 to 64 years of age (CalPERS) or 55 to 63               Faculty unit employees on sabbatical leave shall
(STRS). Faculty members in this program are not              not accept additional and/or outside employment
retired. The program allows faculty to reduce their          without prior approval of the campus President.
time base to 2/3, 1/2, or 1/3 for up to 5 years.
Participants retain the same rank and status they            Faculty shall render service to the CSU upon
had prior to participation.                                  return from a sabbatical leave at the rate of one
                                                             term of service for each term of leave.
The campus sets the PRTB assignment and work
schedule. For example, a participant on a 1/2                The salary for a faculty member on sabbatical
assignment may work full-time for one semester or            leave is paid in accordance with the collective
half-time for the academic year, depending on the            bargaining agreement. If the sabbatical is longer
needs of the campus.                                         than one semester or quarter, then the salary is at
                                                             a reduced rate and service credit is reduced.
If a participant fails to meet the employment
commitment, salary adjustment or repayment of                Information about purchasing Sabbatical Leave
an overpayment may be required.                              Service Credit can be obtained from the Guide to
                                                             your CalPERS Service Credit Purchase
PRTB participants are considered full-time for the           Options (PUB-12) or from the CalPERS Website
purpose of restrictions on additional employment.            at www.calpers.ca.gov.
Salary is pro-rated according to time base and is
paid in twelve equal monthly installments per year.          Difference in Pay (DIP) Leaves
                                                             All full-time faculty unit employees are eligible to
Service credit is accumulated as though working              apply for a DIP leave after six years of full-time
full-time and retirement contributions are based on          service at a campus and after three years of
the full-time salary rate. Social Security                   service since the last sabbatical or Difference in
contributions are based on actual salary earned.             Pay (DIP) Leave.

Participants retain sick leave and accumulate                Final approval of a DIP leave shall not be granted
additional sick leave on a pro-rata basis.                   until the applicant has filed a suitable bond or an
Participants are not eligible for sabbatical leaves          accepted statement of assets or a promissory note
or other paid leaves. Participants remain eligible           that total at least the amount of salary to be paid
for health and other benefits.                               during the leave. Faculty on DIP are considered to
                                                             be in work status and entitled to the same
Retirement and entry into FERP is allowed after              provisions of employment and applicable benefits
participation in PRTB, provided the eligibility              provided by the CSU in the same manner as if the
requirements are met. The FERP employment                    employee were not on sabbatical leave.
options are based on the PRTB reduced time                   However, service credit towards retirement will be
base.                                                        reduced according to the earnings the employee
                                                             will receive.
Sabbatical Leaves
All full-time faculty unit employees are eligible to         Faculty unit employees on DIP leave shall not
apply for a sabbatical leave after six years of full-        accept additional and/or outside employment
time service at a campus and after six years of              without prior approval of the campus President.
service since the last sabbatical or Difference in
Pay (DIP) Leave. Final approval of a sabbatical              Faculty shall render service to the CSU upon
leave shall not be granted until the applicant has           return from a DIP leave at the rate of one term of
filed a suitable bond or an accepted statement of            service for each term of leave.
assets or a promissory note that total at least the
amount of salary to be paid during the leave.

                                                        58
The salary for a DIP leave shall be the difference
between the employee’s salary and the minimum
salary of the instructor (or librarian) rank. Service
credit is reduced based on reduced salary paid.

CONTACTS

The California State University
Office of the Chancellor
Human Resources Administration
                            th
401 Golden Shore Drive – 4 Floor
Long Beach, CA 90802-4210
Pamela Chapin, Senior Manager
Benefits and HR Programs
(562) 951-4414
pchapin@calstate.edu

Michelle Hamilton, Manager
Benefits and HR Programs
(562) 951-4413
mhamilton@calstate.edu




                                                        59
This page intentionally left blank




                                     60
                                          PAY RATE AND SERVICE CREDIT
                                              TABLE OF CONTENTS

Reportable/Non-Reportable Compensation ........................................................................................... 63

            Compensation ................................................................................................................................ 63

            Workers’ Compensation Temporary Disability and Industrial Disability Leave Payments ........... 63

            Compensation Earnable (G.C. section 20636 (g)(1)) .................................................................... 63

            Pay Rate (G.C. section 20636 (g)(2)) ............................................................................................ 63

            Special Compensation (G.C. section 20636 (g)(3)) ....................................................................... 64

            Compensation Limits (IRC section 401 (A) (17)) ........................................................................... 64

            Public Employees’ Pension Reform Act of 2013 (PEPRA) ............................................................ 65

            Legislative or Judicial Branch Employees...................................................................................... 66

Service Credit ............................................................................................................................................ 67

            Impact on Final Benefits................................................................................................................. 67

            Full-Time Service Credit................................................................................................................. 68

            Maximum Service Credit Amount .................................................................................................. 68


The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may be
or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in effect,
not this publication, controls the application of the Public Employees' Retirement Law. It is the reader's
responsibility to independently verify the accuracy of the information contained in this publication before
engaging in a course of action.




                                                                             61
THIS PAGE INTENTIONALLY LEFT BLANK




                                     62
               REPORTABLE/NON-REPORTABLE COMPENSATION
Pay rate and special compensation must be in               normal working hours or for time during which
written pay schedules, memorandums of                      the member is excused from work because of:
understanding, bargaining agreements, or                   holidays, sick leave, industrial disability leave,
similar documents that shall be available for              during which, benefits are payable pursuant to
public scrutiny. Guidelines defining                       Sections 4800 and 4850 of the Labor Code or
compensation, compensation earnable, pay                   Article 4 (commending with Section 19869 of
rate, and special compensation are listed in the           Chapter 2.5 of part 2.6; or Education Code
California Public Employees’ Retirement Law                Section 44043, 87042) vacation, compensatory
(PERL) in G.C. sections 20630, 20636, and the              time off, or leave of absence…”
California Code of Regulations 570.5.
                                                           Labor Code Section 4850 contains industrial
COMPENSATION (G.C. SECTION 20630)                          disability leave provisions for various specified
                                                           safety members of CalPERS. This pay is
Compensation is broadly defined as payment to
                                                           reportable to CalPERS.
employees for services performed during normal
working hours or for time during which the
                                                           Workers’ Compensation Temporary Disability
employee is excused from work because of
                                                           payments in lieu of Workers’ Compensation that
holidays, sick leave, industrial disability leave
                                                           are not pursuant to the above mentioned law
(payments under Labor Code Sections 4800 and
                                                           codes are not reportable to CalPERS. However,
4850), vacation, compensatory time off, or leave
                                                           if a miscellaneous member uses accrued leave
of absence. The employer shall identify and
                                                           credits such as vacation, sick leave, or
report compensation for the pay period in which
                                                           compensated time off (CTO) the compensation
the compensation was “earned” regardless of
                                                           attributable to the used leave credits is
when paid, and shall not exceed compensation
                                                           reportable to CalPERS.
earnable.

PUBLICLY AVAILABLE PAY SCHEDULE                            COMPENSATION EARNABLE
   (CCR 570.5)                                                (G.C. SECTION 20636 (g) (1))
                                                           Compensation earnable for state members
This regulation requires that each pay schedule
                                                           means the average monthly compensation, as
include:
                                                           determined by the board, upon the basis of the
• Position title for every employee position
                                                           average time put in by members in the same
• Pay rate for each position                               group or class of employment and at the same
• Time base for each pay rate                              rate of pay, and is composed of the pay rate and
                                                           special compensation of the member.
This regulation also contains criteria for ensuring
the pay schedule is publicly available and does
                                                           PAY RATE (G.C. SECTION 20636 (g) (2))
not permit a reference to another document in
                                                           Pay rate for state members means the average
lieu of disclosing the pay rate. Further, the
                                                           monthly remuneration paid in cash out of funds
regulation clarifies that “compensation earnable”
will be limited to the amount listed on a pay              paid by the employer to similarly situated
                                                           members of the same group or class of
schedule that meets all of the established
                                                           employment, in payment for the member’s
criteria, and identifies how pay rate may be
                                                           services or for time during which the member is
determined where employers fail to meet the
                                                           excused from work because of holidays, sick
requirements.
                                                           leave, vacation, compensating time off, or leave
                                                           of absence.
WORKERS’ COMPENSATION TEMPORARY
  DISABILITY AND INDUSTRIAL DISABILITY                     GROUP OR CLASS OF EMPLOYMENT
  LEAVE PAYMENTS                                              (G.C. SECTION 20636 (e) (1))
G.C. section 20630 of the PERL defines                     Group or class of employment means a number
“compensation” as “…the remuneration paid out              of employees considered together because they
of funds controlled by the employer in payment             share job similarities, work location, collective
for the member’s services performed during

                                                      63
                                                                 Reportable/Non-Reportable Compensation


bargaining unit, or other logical work related              •   Payments to be covered by a flexible benefits
grouping.                                                       program, where those payments reflect amounts
                                                                that exceed the salary.
SPECIAL COMPENSATION                                        •   Other payments the board may determine are
   (G.C. SECTION 20636 (g) (3))                                 not pay rate or special compensation.
The following list identifies special compensation
items included for state members:                           COMPENSATION LIMITS
• The monetary value of living quarters, board,                (IRC SECTION 401(A) (17))
    lodging, fuel, laundry, and other advantages of         Section 401(a) (17) of the Internal Revenue
    any nature furnished to a member by his or her          Code provides dollar limitations on annual
    employer in payment for the member’s services.          compensation that can be taken into account
• Compensation for performing normally required             under qualified retirement plans. Below is a list
    duties, such as holiday pay, bonuses,                   of the procedures for reporting a member who
    educational incentive pay, maintenance and              has reached the limit. CalPERS notifies all
    noncash payments, out-of-class pay,                     employers of the new limits each year in
    marksmanship pay, hazard pay, motorcycle pay,           January by sending a Circular Letter, and
    paramedic pay, emergency medical technician             my|CalPERS will automatically track the
    pay, Peace Officer Standards and Training               earnings limit.
    (POST) certificate pay, and split shift differential.
                                                            The compensation limit is only applicable to
• Compensation for uniforms in certain
                                                            persons who first became members or
    circumstances.
                                                            participants of California Public Employees’
• Other payments the board may determine to be
                                                            Retirement System (CalPERS) on or after
    within special compensation.                            July 1, 1996.
Pay rate and special compensation do not include:           For those members who are subject to the limit,
• Provisions of a medical or hospital service or            their final compensation will be capped at the
   care plan or insurance plan, contributions to            limit in effect for each 12 consecutive-month
   meet the premium or charge for that plan, or a           period that is used to calculate their allowance if
   payment into a private fund to provide health            they were to retire. The determination of
   and welfare benefits.                                    compensation for each 12 month period shall be
• Payments of the employee portion of taxes                 subject to the annual compensation in effect for
   imposed by the Federal Insurance Contribution            the calendar year in which the 12 month period
   Act.                                                     begins.
• Payments for the purchase of annuity contracts.
• Payments credited as employee contributions.              For example, the 2013 compensation limit for
• Payments credited to deferred compensation                classic members is $255,000. Therefore, the
   plans.                                                   member should not make contributions on
• Payments for unused vacation, annual leave,               earnings that exceed the $255,000 limit within
   personal leave, sick leave, or compensated time          the 2013 calendar year. The earnings that are
   off.                                                     mentioned are those earnings that are
                                                            reportable to CalPERS, which exclude earnings
• Final settlement pay.
                                                            for overtime, automobile allowances, lump sum
• Payments for overtime, including pay in lieu of
                                                            payouts, etc. The compensation limit does not
   vacation or holiday.                                     limit the salary an employer can pay an
• Compensation for additional services outside              employee who is a member of CalPERS.
   regular duties, such as standby pay, callback
   pay, court duty, allowance for automobiles, and          If an employee’s compensation reaches the
   bonuses for duties performed after the                   limit, payroll will error out in the my|CalPERS
   member’s regular work shift.                             system, prompting the employer to not report
• Payments applied for the purchase of a                    employee contributions.
   retirement plan or money purchase pension
   plan.                                                    Your agency will continue reporting pay rate,
                                                            and member earnings, but no member
                                                            contributions for the service periods that remain

                                                   64
                                                                 Reportable/Non-Reportable Compensation


in the calendar year. Reporting the earnings                Reporting up to the compensation cap for new
allows the employee to continue earning service             members will occur in the same manner it does
credit without making contributions on earnings             currently for classic members subject to the
that exceed the limit. While the law limits                 401(a)(17) limit.
employee contributions, employer contributions
will still be paid on all earnings that are reported.       PEPRA requires the CalPERS Board to define
If an employee’s pay rate increases after the               excessive compensation as “a significant increase in
time you cease reporting contributions, please              actuarial liability due to increased compensation
report the higher pay rate and earnings on your             paid to a non-represented employee” and further
payroll transaction in case legislation were to             directs the Board to implement program changes to
change the original limits established for the              ensure that a public agency that creates a significant
year.                                                       increase in actuarial liability bears the increased cost
                                                            associated with that liability.
Once the calendar year is over, the system will
prompt you to report contributions for the                  LEGISLATIVE OR JUDICIAL BRANCH EMPLOYEES
employee and begin the monitoring for the new               Contact CalPERS directly at 888 CalPERS
calendar year.                                              (or 888-225-7377) for questions regarding
                                                            compensation for exempt, Legislative, or Judicial
PUBLIC EMPLOYEES’ PENSION REFORM ACT OF                     employees.
   2013 (PEPRA) – CONTRIBUTION CAPS
PEPRA mandated all new members be subject
to contribution caps which differ from the caps
set for classic members. New member
contribution caps are effective January 1, 2013.
Adjustments to the caps are permitted annually
based on changes to the Consumer Price Index
for All Urban Consumers.

 NEW MEMBER CONTRIBUTION CAPS
 New         $113,700
 Member      (100% of the 2013
 with Social Social Security
 Security    contribution and
             benefit base)
 New         $136,440
 Member      (120% of the 2013
 without     Social Security
 Social      contribution and
 Security    benefit base)

NOTE:
Please see the Membership chapter of this Guide
for the definition of a new PEPRA member.

Employers will report full pay rate and actual
earnings for all members in my|CalPERS and
the system will flag and notify the employer
when the contribution limit has been reached for
that calendar year. Member contributions must
stop when the member’s actual earnings reach
the contribution limits outlined above.

Note that this does not necessitate a change to
your file formatting structure; rather it is related
to how your agency tracks and reports payroll.

                                                       65
                                          Reportable/Non-Reportable Compensation




THIS PAGE INTENTIONALLY LEFT BLANK




                                     66
                                           SERVICE CREDIT
Pay rate indicates the amount of compensation a                    entitled, when the employee’s services are
member is paid for a unit of time (e.g., hour, day or              performed under an employment agreement
month). The pay rate should remain stable                          which provides for a monthly rate of
throughout a fiscal year except for pay raises,                    compensation.
changes of position, etc. If a member works in more
than one position, receives a raise in the middle of a             IMPACT ON FINAL BENEFITS
pay period, or has a variable pay rate, report                     Reporting correct pay rates for your active
amounts earned under each pay rate separately.                     employees is essential in calculating correct
                                                                   member benefits at retirement. The three critical
•     An hourly pay rate is that rate of compensation              elements used in calculating retirement benefits
      to which an employee is entitled under an                    are:
      employment agreement which provides for
      compensation for each hour of regular time                   •   service credit
      worked by the employee.
                                                                   •   benefit factor
•     A daily pay rate for both a full-time and a part-
      time employee is that amount of compensation                 •   final compensation
      to which a full-time employee is entitled when
      the employee’s services are performed under an               Service credit and final compensation are
      employment agreement which provides for a                    directly related to the pay rate and earnings
      daily rate of compensation.                                  reported for the member. Service credit is
                                                                   derived from the pay rate and earnings reported
•     A monthly pay rate for both a full-time and a                as illustrated below.
      part-time employee is that amount of
      compensation to which a full-time employee is


                       EARNINGS DIVIDED BY PAY RATE EQUALS SERVICE CREDIT


    Example       1.    Member Earnings       =        $1,200.00        =    0.100 years of service credit
                        Monthly Pay Rate               $1,200.00

                  2.    Member Earnings       =         $600.00         =    0.050 years of service credit
                        Monthly Pay Rate               $1,200.00

                  3.    Member Earnings       =        $600.00          =    80 hours equates to 0.0465 years
                        Hourly Pay Rate                 $7.50                of service credit

                  4.    Member Earnings       =        $600.00          =    20 days equates to 0.093 years
                        Daily Pay Rate                  $30.00               of service credit




                                                  67
                                                                                  Service Credit

NOTE:                                                  e. Nine months of service for state
Always use the pay rate featured on a                  employees represented by State Bargaining
publicly available pay schedule. The pay               Unit 3 and subject to the 9-12 pay plan or
rate should not change except when a pay               leave plan, provided a memorandum of
raise or demotion occurs.                              understanding has been agreed to by the
                                                       state employer and the recognized
FULL-TIME SERVICE CREDIT                               employee organization to become subject to
                                                       this subdivision. A fractional year of credit
   (G.C. SECTION 20962)
                                                       shall be given for service rendered in a fiscal
One year of service credit shall be granted for
                                                       year in full-time employment for less than
service rendered and compensated in a fiscal
                                                       the time prescribed in this section.
year in full-time employment for any of the
following:
                                                       Partial credit will be given for those working
                                                       less than the full-time markers described
a. One academic year of service for persons
                                                       previously (10 months, 215 days, and 1,720
employed on an academic year basis by the
                                                       hours). Service credited in hours, days, or
University of California, the California State
                                                       months is converted to a percentage of a
University system, or school employees who are
                                                       year at the end of each fiscal year. Service
certificated members, under terms and
                                                       credit for each fiscal year is combined to
conditions prescribed by the board.
                                                       arrive at total service credit.
b. Ten (10) months of service for persons
employed on a monthly basis.
                                                       MAXIMUM SERVICE CREDIT AMOUNT

c. Two hundred fifteen (215) days of service           As one of the major factors used in the
after June 30, 1951, and 250 days prior to July        retirement calculation, service credit is
1, 1951, for persons employed on a daily basis.        checked carefully for each payroll entry.
                                                       CalPERS limits the amount of service credit
d. One thousand seven hundred twenty (1,720)           for each entry to full-time. Credit for more
hours of service after June 30, 1951, and 2,000        than one year of service shall not be allowed
hours prior to July 1, 1951, for persons               for service rendered in any fiscal year.
employed on an hourly basis.




                                                  68
                                                   BENEFITS PROCEDURES
                                                    TABLE OF CONTENTS

Beneficiary Designation Form ................................................................................................................. 73

           Purpose .......................................................................................................................................... 73

           Special Instructions ........................................................................................................................ 73

Reporting an Imminent Death or Terminal Illness/ Power of Attorney ................................................ 74

           Power of Attorney........................................................................................................................... 74

Death of an Active Member ...................................................................................................................... 75

           Employer Notification to System .................................................................................................... 75

           Notification By Other Than Employer ............................................................................................. 75

           Continuation of Health Benefits ..................................................................................................... 76

Information for Family of Deceased ........................................................................................................ 77

Retirement — General .............................................................................................................................. 79

           Step-by-Step Instructions ............................................................................................................... 79

           Request for Estimates or Counseling ............................................................................................ 79

           When to Apply ................................................................................................................................ 80

           Additional Notes For Submitting Forms ......................................................................................... 80

           Who May Apply .............................................................................................................................. 80

           Requesting Additional Service Credit ............................................................................................ 80

           Final Compensation ....................................................................................................................... 81

           Cancellation of Retirement Application .......................................................................................... 81

Service Retirement .................................................................................................................................... 82

           Minimum Requirements for Service Retirement ............................................................................ 82

           Service Retirement Processing — Document Sequence .............................................................. 82

           Retirement Acknowledgment Letter to Employer ......................................................................... 83

           Retirement Acknowledgment Letter to Participant ......................................................................... 83

           First Payment Acknowledgement Letter ........................................................................................ 83



                                                                             69
Deductions after Retirement .................................................................................................................... 84

           Health Insurance ............................................................................................................................ 84

           Dental Insurance ............................................................................................................................ 84

           Vision Care ..................................................................................................................................... 84

           Direct Authorizations ...................................................................................................................... 84

           Income Tax Withholding................................................................................................................. 85

           Payments for Purchasing Service Credit ....................................................................................... 85

           Social Security Instructions ............................................................................................................ 85

           Temporary Annuity Payments ........................................................................................................ 85

Disability Retirement or Industrial Disability Retirement ..................................................................... 86

           Disability Retirement ...................................................................................................................... 86

           Industrial Disability Retirement ...................................................................................................... 86

           Public Employees’ Pension Reform Act of 2013 (PEPRA) ............................................................ 86

           When to Apply ................................................................................................................................ 86

           Emergency Retirement .................................................................................................................. 87

           Who Can Apply .............................................................................................................................. 87

           Application Process........................................................................................................................ 87

           Estimate ......................................................................................................................................... 87

           Complete Package ......................................................................................................................... 87

           Application ...................................................................................................................................... 88

           Determination ................................................................................................................................. 89

           Cancellation of Application ............................................................................................................. 89

           Employer Originated Application .................................................................................................... 89

           What to Submit with Application .................................................................................................... 89

           Subrogation .................................................................................................................................... 90

           Member Alternatives Following the Determination ........................................................................ 90

           Retirement Effective Date .............................................................................................................. 91

           General Disability Calculation ........................................................................................................ 91


                                                                             70
Employment of a Retiree .......................................................................................................................... 93

           General Rule .................................................................................................................................. 93

           180-Day Wait Period ...................................................................................................................... 93

           Limited Duration Employment ........................................................................................................ 94

           Bona Fide Separation in Service Retirement ................................................................................. 94

           State Agency .................................................................................................................................. 95

           California State University .............................................................................................................. 95

           Unemployment Benefits and Retired Annuitant Employment ........................................................ 95

           Special Appointments .................................................................................................................... 96

           Employment By a Non-CalPERS Employer................................................................................... 97

           Employment of a Retiree as an “Independent Contractor” ............................................................ 97

           Employment of a Disability Retiree ................................................................................................ 97

Reinstatement from Retirement .............................................................................................................. 99

           Public Employees’ Pension Reform Act of 2013 (PEPRA) ............................................................ 99

           Service Retirement......................................................................................................................... 99

           Disability Retirement .................................................................................................................... 100

Beneficiary Designation (after Retirement) .......................................................................................... 102

           Notification Of Change In Beneficiary Status ............................................................................... 102

           Qualifying For Pop-Up Benefits ................................................................................................... 103

           Pop-Up Effective Date.................................................................................................................. 103

           Beneficiary Death ......................................................................................................................... 103

           Changing Beneficiary Designations & Modifying an Option and/or Life Option Beneficiary ........ 104

           Qualifying Events ......................................................................................................................... 104

           Dissolution of Marriage, Termination of Domestic Partnership, Legal Separation, Annulment. .. 104

           Non-Spouse/Non-Partner Beneficiary Disclaimer ........................................................................ 105

           Insurance Coverage for a New Spouse ....................................................................................... 105

Death of a Retiree .................................................................................................................................... 106

           Health Insurance .......................................................................................................................... 106


                                                                            71
          Warrants Issued After Retiree’s Death ........................................................................................ 107

Completing the Tax Withholding Election for Death Benefits ............................................................ 108

          Monthly and/or Prorated Payment Including Any Allowance Adjustments .................................. 108

          Option One, Temporary Annuity Payments and Retired Death Benefit ...................................... 108

Tax and Income Reporting Information ................................................................................................ 109

          Statement of Benefits Paid and Withholding ............................................................................... 109

          Taxpayer Identification Number ................................................................................................... 109

          Notice of Possible Penalties ........................................................................................................ 109

          Changing a Tax Withholding Election .......................................................................................... 109


The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may
be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in
effect, not this publication, controls the application of the Public Employees' Retirement Law. It is the
reader's responsibility to independently verify the accuracy of the information contained in this publication
before engaging in a course of action.




                                                                       72
                             BENEFICIARY DESIGNATION FORM
The purpose of the Beneficiary Designation                  NOTE:
Form (PERS-BSD-241) is to:                                  Following a revoking action, the statutory
                                                            beneficiaries then become the designated
1. Provide a means for a member who is not                  beneficiaries unless a new Beneficiary
   retirement eligible and who is not eligible for          Designation Form (PERS-BSD-241) has
   the Alternate Death Benefit to designate                 been filed.
   beneficiaries other than the statutory
   beneficiaries provided by the retirement law.            SPECIAL INSTRUCTIONS
   The statutory beneficiaries are listed under
                                                            1. Changes on the form are acceptable only
   item C on the front of the PERS-BSD-241.
                                                               when they are clear and initialed by the
                                                               member.
2. Provide a means for a member who is married
   or in a registered domestic partnership and is
                                                            2. Complete the Beneficiary Designation
   eligible to retire or who is eligible for the
                                                               Form; make a copy for your records, then
   Alternate Death Benefit to designate
                                                               mail to CalPERS.
   beneficiaries to receive a one-time payment of
   the member’s community property share. The
                                                            3. After CalPERS reviews the form, a
   spouse/registered domestic partner, by law, is
                                                               confirmation letter will be mailed to the
   still entitled to a choice of a monthly allowance
                                                               member within about 6 weeks. If the form is
   or lump sum benefit. However, the amount is
                                                               not acceptable, a new form will be mailed to
   limited to just their community property share
                                                               the member.
   if the member designates other beneficiaries
   on this form.
                                                            NOTE:
3. Change the designated beneficiaries.                     The Beneficiary Designation Form allows a
                                                            member to designate benefits on a percentage
4. Designate any person or legal entity such as             basis if more than one beneficiary is named.
   a college, university, corporation, trust, or            The percentages must add up to 100%. If no
   estate as beneficiary.                                   percentage is indicated, the benefits will be paid
                                                            equally to each beneficiary.
Any of the following life events will revoke the
Beneficiary Designation Form (PERS-BSD-                     Also, there is a box the member can check to
241):                                                       certify they are not legally married or not in a
                                                            domestic partnership. If this box is checked, the
1. Marriage/Registration of Domestic                        Justification for Absence of Spouse’s or
   Partnership.                                             Domestic Partner’s Signature (PERS-BSD-
                                                            800A) form, is not required.
2. Dissolution or annulment of marriage
   or termination of domestic partnership.
   (However, a designation filed after the
   initiation of dissolution of marriage,
   termination of partnership or annulment
   is NOT revoked when the dissolution,
   termination or annulment is finalized).

3. Birth or adoption of a child.

4. Termination of employment which results in
   a refund of contributions or in payment of a
   monthly retirement allowance.




                                                       73
            REPORTING AN IMMINENT DEATH OR TERMINAL ILLNESS/
                           POWER OF ATTORNEY
When an employer becomes aware of an employee’s               6. Nature and seriousness of illness, estimated life
imminent death, terminal illness, or serious surgery the         expectancy, and whether the member is
employer should immediately contact CalPERS by                   presently competent.
calling 888 CalPERS (or 888 225-7377).
                                                              CalPERS will then contact the parties concerned
Imminent death or terminal illness implies that the           regarding the benefit options available, the filing
member is not expected to live more than 90 days.             requirements which must be satisfied, and how best
This also applies to cases where death may not                to expedite the filing process.
necessarily be imminent, but competency to act in
one’s own behalf may become impaired thereby                  NOTE:
jeopardizing later desired retirement action.                 In order for CalPERS to carry out the desired
                                                              retirement action (e.g., provide an allowance to
If a person is competent to complete the Special              the beneficiary), it is imperative that the member
Power of Attorney (PERS-OSS-138) form located in              be alive on the effective date of retirement and
the CalPERS Special Power of Attorney publication             an election filed with CalPERS prior to the
(PUB 30), the person may give his or her “attorney in         effective date of retirement. The retirement
fact” the power and authority to complete transactions        application/election form can be faxed to
relating to CalPERS, including filing applications,           CalPERS at (916) 795-1281 with a notation of
making benefit elections, designating beneficiaries,          “Emergency Retirement” in the top margin of the
and endorsing warrants.                                       front page. The original should be given to the
                                                              member for their records.
NOTE:
Due to changes in the Probate Code, a member                  POWER OF ATTORNEY
may now specifically authorize their attorney-in-             For information on the CalPERS Special Power
fact to select a retirement option and name a                 of Attorney (PUB 30), please visit our Forms &
beneficiary even if the attorney-in-fact is a spouse,         Publication Center on CalPERS On-line at
registered domestic partner, or other family                  www.calpers.ca.gov.
member.
                                                              NOTE:
To expedite processing, the person reporting an               If the member is married or in a registered
imminent death should provide CalPERS with the                domestic partnership and the member’s life
following information:                                        expectancy is so short that there is no time to
                                                              call CalPERS, then you should complete a
1. Member’s name, Social Security number, and birth           Disability Retirement Election/Application,
                                                              (my|CalPERS 1200) form in the document
   date.
                                                              center of my|CalPERS.
2. Probable effective retirement date.
                                                              You cannot elect an option or name a
                                                              beneficiary, but you must complete the “Survivor
3. Current salary information and balance of                  Continuance” section 7 to the best of your
   accumulated sick leave.                                    knowledge. After the completed form is signed,
                                                              write “EMERGENCY” in the top margin on the
4. Name, relationship, birth date, and sex of the             first page, and then fax it to (916) 795-1281.
   person to be designated as the member’s
   beneficiary.                                               Keep the original for your records. Upon receipt
                                                              of the fax, a CalPERS representative will contact
5. Address and telephone number where information             you.
   can be communicated.




                                                         74
                             DEATH OF AN ACTIVE MEMBER
EMPLOYER NOTIFICATION TO SYSTEM                          5.   Amount of special compensation earnings
Immediately upon learning of an employee’s                    for each pay period.
death, the employer should contact CalPERS at            6.   Amount of special compensation
888 CalPERS (or 888-225-7377) and provide                     contributions for each pay period.
the following information:                               7.   Under “Other” column heading, explain
1. Member name, Social Security Number, and                   other than normal contributions (e.g.,
     birth date,                                              retroactive salary increase, etc.).
2. Date of death, cause of death, and date of
     separation,                                         NOTE:
3. Name, address, and telephone number of                • Do not combine contributions for Special
     next-of-kin,                                          Compensation with normal contributions. Use
4. The birth date and date of                              the “special compensation” column.
     marriage/partnership if a spouse/registered
     domestic partner is next-of-kin.                    • Do not deduct retirement contributions from
                                                           the lump sum vacation payments.
CalPERS will send you a partially completed,
Report of Separation for Death (PERS-BSD-                • Do not delay submission of this form awaiting
738) form with the following information:                  final payroll data. Estimate the last period’s
1. Employer name and code                                  payroll information and label this line
2. Name and Social Security Number                         “Estimate”.
3. Date of death
                                                         PART III — UNUSED SICK LEAVE AND/OR
INSTRUCTIONS FOR COMPLETION OF                           UNUSED EDUCATIONAL LEAVE
    PERS-BSD-738                                         Please indicate the total number of days of
The employer should verify and, if necessary,            unused sick leave and educational leave
correct any information on the form. The                 credited to the member (for members who have
employer completes remainder of form as                  attained the minimum retirement age or who are
follows:                                                 under age 50, but have at least 20 years of state
                                                         service only) on death date. Show partial days to
PART I — EFFECTIVE DATES                                 three decimal places.
1. Separation Date – Enter last day on pay
   status, if separation date or date of death           PART IV — HEALTH AND DENTAL INSURANCE
   differs from the last day on payroll for which        Complete only if the member had health
   contributions were deducted.                          insurance coverage under the Public
2. Reason for Separation – If separation is not          Employees’ Medical and Hospital Care Act. A
   due to death, enter reason for separation.            request for change in health benefits coverage
   Separation date cannot be later than death            based upon change in family status (death) may
   date.                                                 be made by an enrolled surviving family member
3. Last Day on Pay Status – Enter last day on            who continues to receive an allowance.
   payroll.
4. Time base – Enter time base.                          PART V — SIGNATURE
                                                         Have this form signed by an authorized officer;
PART II — PAYROLL/CONTRIBUTION INFORMATION               enter title, phone number and date. Fax
1. Dates of pay periods (monthly, semi-                  completed form PERS-BSD-738 to CalPERS
   monthly, bi-weekly, or quadri-weekly) for the         immediately.
   month of separation and each of the three
   months preceding separation.                          NOTIFICATION BY OTHER THAN EMPLOYER
2. Amount of full-time pay rate.                         When CalPERS is informed of an employee’s
3. Gross regular amount earned in each pay               death by someone other than the employer, the
   period.                                               System will also initiate the PERS-BSD-738
4. Amount of regular retirement contributions            form, partially filled in, and forward to the
   for each pay period.                                  employer. The employer completes the balance


                                                    75
                                                                                  Death of an Active Member


of the form per instructions found in “Employer            Part A
Notification to System”.                                   Employee Information
                                                           1. Survivor’s Social Security number
CONTINUATION OF HEALTH BENEFITS                            2. Survivor’s full name
AB-1639 (G.C. section 19849.15) Overview
(Does Not Apply to CSU Employees)                          3. Survivor’s home phone number
                                                           4. Survivor’s home address
Assembly Bill 1639 was passed into law on
October 10, 1999, for survivors of State                   Part B
members. This bill was created to prevent the              Carrier and Premium
lapse of health coverage between the member’s              5a. Survivor’s health plan’s name and address
death and the determination of the survivors’
health benefits eligibility and monthly allowance.         5b. Health plan 4 digit code (e.g., Kaiser 0562)
The deceased member’s employer must pay the                6a. Gross premium for 120 days of health
total amount of the premiums for 120 days for                      coverage (4 months)
eligible survivors; however, the employer may
elect to bill survivors for the survivors’ share of        6b. Do not complete
the premiums.                                              6c. Do not complete
Procedures                                                 6d. No signature required
1. Employer reports the member’s death to                  6e. No date required
   CalPERS.
                                                           Part C
2. Employer completes a Direct Payment                     Reason for Direct Pay
   Authorization (HBD-21) form using the
                                                           Always use box 14 (other) and write in the
   survivors’ Social Security number and                   explanation box AB 1639 survivor coverage for
   demographic information.                                120 days.
3. Employer requests the total health premium              Leave all other boxes blank.
   amount for 120 days of health coverage
   from the agency’s Fiscal Office.                        Part D
                                                           Agency Information
4. Employer sends the completed HBD-21 and                 15a. Name, address and contact number of the
   120-day premium check directly to the                        deceased member’s employer
   health plan carrier.
                                                           15b. Do not complete
5. Employer bills the spouse or other eligible
   family member(s) for the employee’s share               16. Start and end dates of the survivor
   of the cost.                                                coverage under AB 1639 (4 month period
                                                               beginning the first of the month following the
6. Employer completes the same steps for                       member’s death and ending the last day of
   dental and vision benefits.                                 the 4 month coverage)

HBD-21 Instructions for AB 1639                            17. Do not complete
Employers must complete and submit the
following sections of the HBD-21 to the                    18. Health Benefit Officer’s signature
survivor’s health plan for enrollment.
                                                           19. Date the HBD-21 was completed

                                                           20. Employer’s telephone number




                                                      76
                        INFORMATION FOR FAMILY OF DECEASED
When CalPERS is notified of an active                   II. If the member was not eligible for a monthly
employee’s death, a letter (which may not                   allowance:
provide an estimate of the benefits payable) and            a) Member’s registered domestic partner
the publication Pre-Retirement Survivor                          or surviving spouse (whether or not still
Benefits (PUB-55) will be sent to the next of kin.               living together at the time of death); or, if
The booklet explains the benefits which may be                   none,
payable and provides an Application for Active              b) Natural and adopted children, including
Member/Non-Member Survivor Benefits                              (in limited circumstances) a natural child
(PERS-BSD-1167).                                                 adopted by another, share and share
                                                                 alike; or, if none,
If an estimate is not provided, or if only lump             c) Parents, share and share alike; or, if
sum benefits are payable, the PERS-BSD-1167                      none,
may serve as the claim form if completed by the             d) Brothers and sisters, share and share
designated or statutory beneficiary. If there is a               alike; or, if none,
choice of monthly or lump sum benefit an                    e) Member’s estate (if probated, or subject
election must be made on the PERS-BSD-1167.                      to probate); or, if not,
If the information provided in the initial PERS-            f) Member’s trust, if one exists; or, if not,
BSD-1167, along with any designation on file,               g) Stepchildren, share and share alike; or,
indicates the proper beneficiary remains to be                   if none,
contacted, a claim form will be sent to the proper          h) Grandchildren, including step-
beneficiary. Payment of death benefits will be as                grandchildren, share and share alike; or,
soon as possible after receipt of the claim form                 if none,
and any other documents required (e.g.,                     i) Nieces and nephews, share and share
marriage, birth, or death certificates).                         alike; or, if none,
                                                            j) Great-grandchildren, share and share
To determine the beneficiary(ies), CalPERS will                  alike; or, if none,
check the system for a valid *Beneficiary                   k) Cousins, share and share alike.
Designation Form (PERS-BSD-241) (See
Beneficiary Designation Form section for more           *Any of the following events will, by law, revoke
information). If a valid PERS-BSD-241 has been          the Beneficiary Designation Form (PERS-
filed and if the member was eligible for                BSD-241):
retirement, or if the Alternate Death Benefit is            a) Marriage or registration of domestic
payable, the allowance payable to the surviving                 partnership.
spouse will be reduced and the beneficiary(ies)
designated will receive a one-time payment of               b) Dissolution or annulment of marriage or
the employee’s community property share. If the                termination of partnership if initiated
PERS-BSD-241 is no longer valid or has not                     after the designation was filed.
been filed, death benefits will normally be paid to
the statutory beneficiary as follows:                       c) Birth or adoption of a child.

I.   If the member was eligible for retirement or if        d) Termination of employment which
     the Alternate Death Benefit is payable on                 results in a refund of contributions or in
     the date of death:                                        payment of a monthly retirement
     a) Member’s surviving spouse or                           allowance.
          registered domestic partner if
          married/registered for at least one year
          prior to the onset of the illness or injury
          that caused the member’s death,

     b) Unmarried minor child
                                                                  Information for Family of Deceased


Following the member’s death, a spouse or             NOTE:
registered domestic partner may request a             Original documents (death certificate, marriage
Disclaimer of Benefits (my|CalPERS 0362)              certificate, etc.) should NOT be sent to
form if he/she does not wish to receive their         CalPERS. Only clear photocopies of these
community property interest in the death              documents should be submitted. To expedite the
benefits. If the Disclaimer of Benefits               death benefit payment process, ensure that the
(my|CalPERS 0362) form is completed, then the         deceased member’s Social Security Number
entire Basic Death Benefit may be paid to the         appears in the top right corner of each
person(s) designated on the PERS-BSD-241,             photocopy so that the documents are associated
unless the member is survived by a minor child        with the correct file.
who would become the statutory beneficiary
entitled to a monthly allowance.




                                                 78
                                   RETIREMENT — GENERAL
STEP-BY-STEP INSTRUCTIONS                                    a request form can be mailed to you by
                                                             calling CalPERS at 888 CalPERS (or 888-
For step-by-step instructions on completing the              225-7377).
forms used to process a Service Retirement,
please refer to A Guide to Completing Your               3. All information on the Retirement Allowance
CalPERS Service Retirement Election                         Estimate Request form must be completed
                                                            before an estimate can be processed.
Application (PUB 43) or visit the Forms &
                                                            Important: Please be sure the address and
Publications Directory on the CalPERS Website.
                                                            CalPERS ID and/or Social Security number
                                                            are legible.
REQUEST FOR ESTIMATES OR COUNSELING
                                                         4. Retirement benefit estimates will be
Members may wish to receive an estimate of                  mailed to the address indicated on the
their CalPERS retirement allowance. There are               request form within 30 days of receipt of the
several important things members should know                request by CalPERS.
about CalPERS retirement estimates:
                                                         5. A request for an estimate is NOT an
1. Members may receive immediate estimates                  application for retirement. A Service
   by using the CalPERS On-Line Retirement                  Retirement Election Application
   Estimate Calculators, available on the                   (my|CalPERS 1206) or Disability Retirement
   CalPERS Website, www.calpers.ca.gov.                     Election Application (my|CalPERS 1200)
   Using the online Retirement Estimate                     must be submitted to apply for retirement. An
   Calculator allows members the flexibility to             application for retirement may not be used to
   calculate an estimate using assumptions or               request an estimate. If the member plans to
   projections anticipated by or known to the               retire in the near future, the employer should
   member, allowing them to determine the                   provide the member with the CalPERS
   best retirement date based on these                      brochure Planning Your Service Retirement
   anticipated changes or projections. This is              (PUB 1) and the CalPERS State
   also the recommended service for members                 Miscellaneous and Industrial Benefits
   seeking retirement estimates greater than                Booklet (PUB 6) or the CalPERS State
   one year in the future. Please note that                 Safety Booklet (PUB 7). These publications
   CalPERS-generated estimates do not                       provide additional benefits to consider in
   project future salary increases, changes in              preparing for retirement.
   time base, or unreported special
   compensation.                                         6. Members are encouraged to take a
                                                            CalPERS retirement planning class prior to
2. CalPERS generated retirement estimates                   submitting their application for retirement.
   are processed by the Benefit Services                    CalPERS offers a series of five classes
   Division. These estimates use the payroll                designed to educate and inform CalPERS
   reported by the employer. However, actual                members at any stage of their careers.
   final compensation may be different after                Members are encouraged to take these
   payroll reconciliation and review, and will be           classes throughout their careers to ensure
   based on compensation allowable by law.                  they understand their benefits and to
   Members who are within one year of their                 prepare for retirement. These classes are
   expected retirement date may request a                   available both online and in a classroom
   CalPERS generated Retirement Estimate if                 with an instructor. Visit the CalPERS
   they download, complete, and mail the                    Education Center on our website
   Retirement Allowance Estimate Request                    www.calpers.ca.gov to view the latest
   form to CalPERS located on the CalPERS                   schedules and enroll in a class, or call our
   Website. Members within one year of                      toll free number 888 CalPERS (or 888-225-
   retirement may request two CalPERS                       7377) for more information.
   generated estimate requests in a 12-month
   period. Alternatively,


                                                    79
                                                                                       Retirement — General


WHEN TO APPLY                                              WHO MAY APPLY

An application for retirement should be forwarded to       SERVICE RETIREMENT
the Benefit Services Division not more than 90 days        A 1st-Tier State member who has reached age 50
prior to the desired effective date.                       and has earned at least five years of credited
                                                           service may submit an application for retirement. A
NOTE:                                                      State Miscellaneous and Industrial member with a
A disability retirement application should be              membership date on or after January 1, 2013 must
submitted as soon as a medical condition                   be age 52. A 2nd-Tier member who has reached
becomes disabling and prior to the expiration of           age 55 and has earned at least ten years of credited
benefits to ensure the member is eligible for the          service may submit an application for retirement.
earliest effective date possible.                          The application must be submitted by the member
                                                           and show a definite retirement date. It is the
This advance notice permits CalPERS to make                employee’s responsibility, not the employer’s, to see
calculations and begin payments on a timely basis.         that the retirement application is sent to CalPERS.
Members should be advised of this and encouraged
to mail their applications to:                             NOTE:
                                                           If the member is employed in an overtime
CalPERS                                                    position or multiple positions with CalPERS
Benefit Services Division                                  employers, the member MUST separate from all
P.O. Box 942711                                            employment to retire, even though they may not
Sacramento, CA 94229-2711                                  be receiving service credit for one or more of the
                                                           positions.
ADDITIONAL NOTES FOR SUBMITTING FORMS
                                                           DISABILITY OR INDUSTRIAL DISABILITY
If the application is submitted by FAX to the              RETIREMENT
Benefits Services Division, DO NOT send the
original hard copy application.                            Please refer to the instructions found under
                                                           “Disability Retirement or Industrial Disability
DO NOT submit any original Certificates                    Retirement” in this section of the handbook.
(Marriage, Birth, Death, etc.). Send only
photocopies of important documents, as                     NOTE:
CalPERS cannot return original documents.                  A member who is employed on a permanent
Each page should have the member’s Social                  part-time basis and has worked at least five
Security Number or CalPERS ID for                          calendar years for 1st-Tier or ten years for 2nd-
identification.                                            Tier may be eligible to retire with less than five
                                                           or ten years of credited service.
If the application was received within nine                The retirement benefit the member will receive
months after discontinuance of employment, or,             will be based on their actual service credit
in the case of retirement for disability, if the           amount. (G.C. section 20970)
member was physically or mentally
incapacitated to perform his or her duties within          REQUESTING ADDITIONAL SERVICE CREDIT
nine months from the date the member
discontinued state service, the effective date of
                                                           All requests for service credit cost information
retirement will be the day following the last day
                                                           must be received prior to the member’s effective
of payroll.
                                                           retirement date. The retirement date can be no
                                                           earlier than the day following receipt of the
In the case of an application for retirement filed
                                                           request by CalPERS. Therefore, it is important
with the Board more than nine months after                 that the member request any additional service
discontinuance of the member’s state service, the          credit information well in advance of their
effective date shall be the first of the month in which    retirement to avoid possible delays in the
the member’s application was received at an office         retirement date.
of the Board or by an employee of this system
designated by the Board.


                                                      80
                                                                                          Retirement — General


A Guide to Your CalPERS Service Credit                        CANCELLATION OF RETIREMENT APPLICATION
Purchase Options (PUB 12) can be downloaded
from the CalPERS Website at www.calpers.ca.gov                If a member desires to cancel the service
or requested by employers from the CalPERS                    retirement application or defer retirement to a
Central Supply Section by submitting an email                 later date, the member must request to do so
request to:                                                   within 30 days of receiving the first retirement
Public_Agency_Requests@calpers.ca.gov.                        benefit payment. For cancellation of disability
                                                              retirement, refer to the instructions found under
Service credit and questions should be directed to:           the “Disability or Industrial Disability Retirement”
                                                              section. A cancellation is binding; the member
CalPERS                                                       must thereafter re-apply whenever the member
Customer Account Services Division                            is ready to retire.
P.O. Box 942704
Sacramento, CA 94229-2704                                     1. Once 30 days after the first retirement
                                                                 payment has been issued (regardless of
                                                                 whether the check is cashed), the member
For more information contact CalPERS at
                                                                 will not be allowed to cancel the retirement.
888 CalPERS (or 888-225-7377) or visit the
CalPERS Website at www.calpers.ca.gov.
                                                              2. A member may request a refund of
                                                                 accumulated contributions in writing in lieu
FINAL COMPENSATION                                               of retirement prior to the issuance of the first
                                                                 retirement payment.
Effective 07/01/91 all state employees were given a
one year final compensation in the calculation of
their retirement benefit. This means that 12
consecutive months of salary will be averaged to
calculate their retirement benefit.

Recently, new legislation and labor contracts provide
retirement contribution increases for employees in
certain bargaining units, and changes to the
retirement benefits and final compensation period for
new employees who have no prior State
employment.

It is now essential to pay particular attention to the
date the employee was first hired by the State and
their bargaining unit or affiliation to ensure
contributions paid into this System are correct.
Failure to properly report your employees impacts
the timeliness and accuracy of benefits paid and
could result in a financial hardship for your
employees when errors are ultimately discovered
and corrected as required by law.

Any questions about bargaining unit agreements
should be directed to the California Department of
Human Resources (CalHR). Additional information
can be found on their website at www.calhr.ca.gov
under Policy Memos.

For more information, refer to California Public
Employees’ Retirement Law (PERL),
G.C. sections 20037–20037.15.


                                                         81
                                      SERVICE RETIREMENT
MINIMUM REQUIREMENTS FOR SERVICE                                The Direct Deposit Authorization
   RETIREMENT                                                   (my|CalPERS 1288) form can also be submitted
                                                                with the election application form.
A member shall be retired for service upon
written application if the member has reached              2.   Sick Leave/Education Leave Employers must
the minimum retirement age and has earned at                    certify the separation information by submitting
least five years of credited service under 1st-Tier             it and any updates online using my|CalPERS.
or ten years under 2nd-Tier. Minimum retirement                 Separation information includes the employee’s
age is 50 for 1st-Tier retirement plan. State                   permanent separation date and any unused sick
Miscellaneous and Industrial members with a                     leave or educational leave balances. If the
membership date on or after January 1, 2013                     information is submitted prior to CalPERS
must be age 52. The minimum retirement age is                   processing the member application the
55 for 2nd-Tier retirement plan. A member with                  additional service credit will be included in the
credited service under both 1st-Tier and 2nd-                   member’s initial retirement benefit. Otherwise
Tier should contact CalPERS for exceptions to                   the member’s account will be adjusted after the
the 2nd-Tier minimum age and service                            information is submitted.
requirement.
                                                                It is imperative that you report a permanent
A member who is employed on a permanent                         separation when an employee retires or
part-time basis and has worked at least five                    otherwise ends employment with your
calendar years may be eligible to retire with less              agency, regardless of the reason. All
than five years of credited service. Full-time                  transactions within mylCalPERS, including
employees must work 10 months of full-time                      health and retirement, rely on the permanent
employment or 1,720 hours to equal one year of                  separation date to be reported to determine
CalPERS service credit. The retirement benefit                  proper benefit eligibility and cost for both the
the member will receive will be based on their                  employer and the member.
actual service credit amount. (G.C. 20970)
                                                           To receive sick leave credit or educational leave
SERVICE RETIREMENT PROCESSING —                            credit, the member’s retirement date must be within
   DOCUMENT SEQUENCE                                       120 days from the date of separation from the
                                                           employer granting the sick leave or educational
1.   Service Retirement Election Application               leave. Educational leave shall ONLY apply to eligible
     (my|CalPERS 1206) is received in the System           State members in bargaining units that have agreed
     from the member. Please note that if the              to the benefit in a memorandum of understanding
     member is married but is not able to obtain the       through collective bargaining.
     spouse’s signature on the Service Retirement
     Election Application form, they must complete         NOTE:
     a Justification for Absence of Spouse’s               Sick leave/educational leave information must
     Signature (PERS-BSD-800A).                            be reported in 8 hour days only. Employers can
                                                           take whatever in-house procedures they desire
     The application package includes information          to ensure appropriate sick leave/educational
     regarding required marriage and birth date            leave days are reported. For instance, the
     evidence. Do not submit any original                  employee’s sick leave/educational leave can be
     certificates. Send only photocopies of                taken off the books the day the certification is
     important documents; CalPERS cannot return            completed.
     original documents. Each page of all documents
     submitted to CalPERS should include the               The Personnel Information Management System
     member’s Social Security Number or CalPERS            (PIMS) is still used to report credit for unused
     ID in the upper right hand corner for                 sick leave/educational leave. If your agency
     identification.                                       needs to correct the reported amounts, you
                                                           should correct the permanent separation event


                                                      82
                                                                                            Service Retirement


on the appointment in my|CalPERS which will                     the member has CalPERS health coverage, the
allow you to update the sick leave/educational                  health insurance letter will have information about
leave amounts to the correct number and the                     those benefits. The member should keep these
member’s account will be adjusted.                              letters along with other CalPERS documents and
                                                                review the information immediately to ensure it is
CONVERSION OF SICK LEAVE/EDUCATIONAL LEAVE                      correct.
CREDITS FOR EMPLOYEES WORKING EIGHT HOURS PER
DAY
                                                              NOTE:
                                                              The member must notify CalPERS within 30
All employees, regardless of their work schedule              days of the issuance of their first benefit
(6.6 hours, 10/4/40, 9/8/80, 52 hour, etc) will               payment if any changes need to be made in
have any accumulated unused hours of sick                     their benefit option election, beneficiary, or
leave service credit/educational leave divided by             retirement date.
eight to determine the number of days to report
to CalPERS for the purposes of enhancing the
retirement benefit.                                           5. Account Detail Information Sheet is attached to
                                                                 the my|CalPERS 0924, which explains the data
Sick leave is converted to service credit by: days               used to calculate the member’s retirement
of reported sick leave X .004 = service credit.                  allowance.
Example: 35 days X .004 equals .140 years of
service credit.                                               6. First Acknowledgment Letter for Employers
                                                                 (my|CalPERS 0926) is sent to the employer after
NOTE:                                                            the employee is placed on the retirement roll. The
The accrual of sick leave/educational leave                      my|CalPERS 0926 provides the employer with
credits must be consistent for members of the                    the number of sick leave days that were included
same group or class who work like or similar                     in the employee’s retirement calculation.
hours. Service credit, which was not earned
through the “accrual of sick leave/educational                NOTE:
leave” policy, may not be credited on an                      The my|CalPERS 0926 is mailed to the
individual basis for the purposes of enhancing                employer prior to the issuance of the member’s
the retirement benefit. Unused sick                           first retirement check, but usually after the
leave/educational leave for which a member                    member’s separation date.
receives compensation, (sick leave/educational
leave cash out) should not be reported to                     For future employment of the retiree, please refer to
CalPERS for purposes of enhancing the                         the section on “Employment of a Retiree” and the
retirement benefit.                                           section on “Reinstatement from Retirement".

3. A Retirement Acknowledgment Letter to
  Participant (my|CalPERS 0964) is sent to the
  member and the Employer Acknowledgment
  Letter (PERS-BSD-197) within 5-10 days of
  receipt of the Service Retirement Election
  Application (my|CalPERS 1206) in our
  Sacramento Headquarters office letting them know
  we have begun processing the request. If the
  member does not receive an acknowledgment
  letter within 10 days they should contact CalPERS
  immediately.

4. First Payment Acknowledgement Letter
  (my|CalPERS 0924) will be sent to the member
  prior to receipt of the first retirement check. This
  letter will provide the date of the first retirement
  check, the amount the member can expect to
  receive, and important income tax information. If

                                                         83
                              DEDUCTIONS AFTER RETIREMENT
HEALTH INSURANCE                                          It is not necessary to have the member’s
Health eligibility continues for a retiree of the         signature on the form; it can be signed as an
CalPERS Health Program under the following                “Administrative Doc.” The STD-692 needs to be
conditions:                                               completed using the retired plan codes, not
                                                          active. Please list in the “Remarks Section,” the
• The retiree was eligible for CalPERS health             member’s separation date and retirement
  enrollment upon permanent separation of                 effective date.
  employment;
• The retiree receives a monthly retirement               VISION CARE
  allowance from CalPERS; and                             The State-sponsored vision plan is available to
• The effective date of retirement is within no           state annuitants. A member must be eligible for
  more than one full pay period following the             the vision care plan on the date of separation
  effective date of permanent separation of               from employment and must retire within 120
  employment.                                             days of separation. For additional information
                                                          contact your personnel office or the California
If the retiree meets all of the above conditions          Department of Human Resources at (916) 322-
but the effective date of retirement is greater           0300.
than one full pay period up to 120 calendar days
following the effective date of permanent                 NOTE:
separation, the retiree must submit a request to          Most deductions will stop at retirement and will
CalPERS for enrollment. The effective date of             need to be re-established (with the exception of
coverage will be the first of the month following         health, dental, and some union memberships).
the date the request is received by CalPERS.
                                                          DIRECT AUTHORIZATIONS
NOTE:                                                     Direct authorization deductions for union dues,
If the retirement effective date is greater than          life insurance, credit union payments or shares, or
120 calendar days following the effective date of         charitable organizations may be established
permanent separation, the retiree will not be             provided that:
eligible to elect enrollment in the CalPERS
Health Program.                                           1. The organization has contracted with CalPERS
                                                             to provide this service (members must contact
For questions on health insurance benefits,                  the organization for this information);
please refer to the CalPERS Website at
www.calpers.ca.gov, or call CalPERS at 888
                                                          2. The member authorizes to have money
CalPERS (or 888-225-7377).
                                                             deducted through the organization;
DENTAL INSURANCE                                          3. The organization submits the authorization
A member must be enrolled in or eligible for a
                                                             directly to CalPERS; and
state dental plan on their date of separation from
employment and retire within 120 days of
                                                          4. Authorized deductions are stopped or changed
separation. For questions on eligibility, please
refer to the CalHR Procedures Manual.                        upon receipt of written authorization from the
                                                             organization.
CalPERS sends a First Acknowledgement
Letter for Employers (my|CalPERS 0926) to                 CalPERS’ function is limited to the mechanics of
notify you when a member is placed on the                 deducting and determining what deduction
retirement roll.                                          authorization is proper. Inquiries concerning these
                                                          types of “other deductions,” should be directed to the
A Dental Plan Enrollment Authorization (STD-              organization.
692) must be completed and sent to CalPERS in
order to enroll a member in retired coverage.



                                                     84
                                                                                 Deductions after Retirement


INCOME TAX WITHHOLDING                                        TEMPORARY ANNUITY PAYMENTS
Federal and California State income tax deductions            Members who are retiring for service can elect to
will be withheld from monthly or lump sum benefit             receive an additional monthly allowance from
payments unless the retiree specifically elects no tax        CalPERS.
withholding. Federal (W4P), and California State
(DE4P) tax withholding forms must be completed to             For members entering CalPERS membership prior
elect either a specific dollar amount of withholding, a       to January 1, 2002, the benefit is payable from
withholding based on tax tables, or specifically elect        retirement date to a specific age that the member
no tax withholding. If the election form is not filed         selects, 59 ½ or any whole age from 60 to 68. The
with CalPERS, automatic withholding begins based              member can name the dollar amount they wish to
on a married person with three (3) exemptions.                receive within certain limitations.
Any questions retirees have concerning the taxability
of their allowance should be directed to the Internal         For members entering CalPERS membership on or
Revenue Service or California State Franchise Tax             after January 1, 2002, their employment must be in
Board.                                                        a position covered by Social Security and the
                                                              maximum dollar amount that can be received is the
PAYMENTS FOR PURCHASING SERVICE CREDIT                        amount of their potential Social Security benefit.
A member who previously elected to purchase                   They must elect to receive temporary annuity
public service credit, redeposit contributions for            payments until any whole age from 62 to 70.
service credit, or has arrears contributions, may
elect upon retirement to continue any payments due            This benefit is NOT free. The member’s CalPERS
into retirement. In such cases, service credit will be        lifetime allowance is permanently reduced to pay for
included in the retirement calculation and a monthly          the temporary annuity.
payment will be taken from the member’s retirement
allowance. Any balance still unpaid upon the                  The Temporary Annuity publication (PUB 13)
member’s death shall be deducted from death                   can be downloaded and member questions on
benefits otherwise payable. A retired member’s                the program can be directed to the CalPERS
survivor entitled to a monthly survivor allowance             Website at www.calpers.ca.gov, or by calling
may elect to continue such deductions from the                CalPERS at 888 CalPERS (or 888-225-7377).
monthly allowance in lieu of the lump sum payment
otherwise required. The following criteria must be
adhered to:

1. No installment payments (deductions) are
   permitted unless an election has been made
   prior to retirement.

2. Death benefits against which unpaid balances
   may be deducted include the lump sum benefit,
   survivor continuance benefits, and payments
   under all optional settlements.

SOCIAL SECURITY INSTRUCTIONS
Members having Social Security coverage,
integrated with System coverage, should contact
their local federal Social Security Office about three
months before their retirement. Reference material
needed by the Social Security Office will be: Social
Security number, name of the employer, and
documentary proof of birth.




                                                         85
                                                     Disability Retirement or Industrial Disability Retirement



   DISABILITY RETIREMENT OR INDUSTRIAL DISABILITY RETIREMENT
You should maintain a supply of A Guide To                   member under age 50 who qualifies for an
Completing Your CalPERS Disability Retirement                industrial disability retirement that may result in
Election Application (PUB 35), which includes the            a higher benefit than 50% of salary. These
disability retirement application, forms to be               provisions remain in effect only until January 1,
completed with step-by-step instructions and                 2018, after which, the new industrial disability
important information regarding disability and               retirement provisions will not apply unless the
industrial disability retirement. Please familiarize         date is extended by statute.
yourself with the information in the publication to
provide assistance to your employees. CalPERS                A safety member who retires on or after January
strongly recommends that members complete and                1, 2013 for industrial disability shall receive a
                                                             disability retirement benefit equal to the greater
mail the Retirement Allowance Estimate Request
                                                             of the following:
form prior to completing the Disability Retirement
Election Application (my|CalPERS 1200).
                                                             •   50% of final compensation (or more by
                                                                 additional contract provisions). An additional
DISABILITY RETIREMENT                                            annuity may be payable if the member has
Retirement for disability, available to all members              contributions associated to non-safety
(Miscellaneous, Industrial, Safety classifications)              service.
credited with at least five years of service credit for      •   A service retirement allowance, if qualified
1st-Tier and at least 10 years of service credit if 2nd-         for service retirement.
Tier, is retirement resulting from mental or physical        •   If under age 50, an actuarially reduced
incapacity for the performance of the usual duties.              benefit factor (determined by the retirement
The injury or disease causing the incapacity need                formula and how many quarter years under
not be job-related.                                              age 50) multiplied by the number of years of
                                                                 service credit.
NOTE:
A member who is employed on a permanent                      WHEN TO APPLY
part-time basis and has worked at least five                 The application for disability retirement shall be
years for 1st-Tier or ten years for 2nd-Tier may             made only:
be eligible to retire with less than five or ten
years of credited service. The retirement benefit            1. While a member is in state service, or
the member will receive will be based on their               2. For a member, whose contributions will be made
actual service credit amount. (G.C. section                      under G.C. section 20997, and is absent on
20970)                                                           military service, or
                                                             3. Within four months after the discontinuance of the
INDUSTRIAL DISABILITY RETIREMENT                                 state service of the member, or while on an
Retirement for industrial disability, available to               approved leave of absence, or
all Safety members and those Miscellaneous                   4. While the member is physically or mentally
and Industrial members covered under G.C.                       incapacitated to perform their duties from the date
section 21151, is retirement resulting from                     of discontinuance of state service to the time of
mental or physical incapacity for the                           application or motion.
performance of the usual duties. The disabling
injury or disease must be work-incurred or job-              As soon as it is believed the member is unable to
related. Age, service, and contributions are not
                                                             perform the job because of an illness or injury, which
considered for qualifying purposes.
                                                             is expected to be permanent, or last longer than six
                                                             months, the member or someone on the member’s
Generally, the industrial disability retirement
allowance of a member under age 50 will be                   behalf, should submit an application for disability
50% of final compensation.                                   retirement. The medical condition does not have to
                                                             be “permanent and stationary” under Workers’
The Public Employees’ Pension Reform Act of                  Compensation to submit the application.
2013 (PEPRA) allows a calculation for a safety


                                                        86
                                                     Disability Retirement or Industrial Disability Retirement


EMERGENCY RETIREMENT                                         •   A completed Disability Retirement
CalPERS can expedite retirement processing for                   Election Application (my|CalPERS 1200).
members who are facing a terminal illness. If this is        •   A completed Authorization to Disclose
the case, CalPERS should be contacted                            Protected Health Information
immediately to discuss an emergency retirement.                  (my|CalPERS 1203) signed by the member.
We will make every effort possible to quickly obtain
the necessary information and complete our                   •   A completed Physician’s Report on
processing. However, for any post-retirement death               Disability (my|CalPERS 1204) from a
benefits to be paid, the member must be living on                physician who specializes in the member’s
the effective date of retirement. Please refer to the            disabling condition. The physician must
                                                                 provide a diagnosis on the member’s
beginning of this chapter for more information.
                                                                 condition and include information about how
                                                                 it prevents the member from performing their
WHO CAN APPLY                                                    job duties (an incomplete form will delay the
Application for disability or industrial disability              review process).
retirement may be made by the member, by a
duly authorized official of the employing agency, or         •   An Employer Information for Disability
any person on behalf of the member.                              Retirement (my|CalPERS 1201) form with
“Duly authorized official” referred to above, is                 the job description attached. This form must
defined in G.C. section 21152 (a)(b)(c).                         be used as a cover sheet for the job
                                                                 description and any other documents the
G.C. section 21153 provides that the employer                    employer submits to CalPERS.
may not separate a member because of                         NOTE:
disability who is otherwise eligible to retire for           Submission of the job description should not be
disability. The employer must apply for the                  delayed for the completion of the Report of
disability retirement of such a member unless                Separation & Advance Payroll Information
the member waives the right to retire for                    (my|CalPERS 1205) form. Employers should
disability and elects to either withdraw their               return the (my|CalPERS 1205) form as soon as
contributions or leave them on deposit for a                 information is available.
future service retirement.
                                                             •   A completed Physical Requirements of
APPLICATION PROCESS                                              Position/Occupation Title (my|CalPERS
The member or individual applying on the                         0700) form providing detailed information on
member’s behalf, other than the employer, is                     the specific physical requirements of the
responsible for forwarding all forms to the                      member’s position or occupational title.
appropriate party(ies) for completion. (See the
                                                             •   A completed Request Information for
“Employer Originated Application” section later
                                                                 Compensation Review (my|CalPERS
in this chapter of this handbook for further
                                                                 0793) form from the insurance carrier, if the
information).
                                                                 member has a job-related injury, with
                                                                 medical records attached related to the
Estimate — The member’s first step should be
                                                                 claimed disability.
to request a Retirement Estimate online at the
CalPERS Website, or download, complete and
                                                             All the required forms needed are included in
submit the Retirement Allowance Estimate
                                                             A Guide to Completing Your CalPERS
Request (my|CalPERS 1211) form also
                                                             Disability Retirement Election Application
available online. Alternatively, a request can be
                                                             (PUB 35). The member should read the entire
made by calling CalPERS at 888 CalPERS
                                                             publication prior to completing any forms so the
(or 888-225-7377).
                                                             information submitted is complete and accurate.
                                                             This will assist CalPERS in making a
Complete Package — In order for CalPERS
                                                             determination in a timely manner.
to process a request for disability retirement,
a complete package must be received within 30
calendar days. If a complete package is not
received within this time frame, CalPERS will
cancel the member’s application. A complete
package consists of:

                                                        87
                                                  Disability Retirement or Industrial Disability Retirement


NOTE:                                                      State members in bargaining units that have agreed
It is the member’s responsibility to follow up with        to the benefit in a memorandum of understanding
the employer, workers’ compensation carrier,               through collective bargaining.
and treating physician(s) to ensure the
requested information is submitted to CalPERS.             NOTE:
If the required information is not received within         Sick leave/educational leave information must
30 calendar days of application submission, the            be reported in 8 hour days only. Employers can
application will be cancelled.                             take whatever in-house procedures they desire
                                                           to ensure appropriate sick leave/educational
Application — When the member submits the                  leave days are reported. For instance, the
Disability Retirement Election Application                 employee’s sick leave/educational leave can be
(my|CalPERS 1200), the following sections must             taken off the books the day the certification is
be completed:                                              completed.

Sections 1 - 8 and 10 & 11 - Completed by the              The Personnel Information Management System
member or by someone on the member’s behalf.               (PIMS) is still used to report credit for unused
                                                           sick leave/educational leave. If your agency
Section 2 - Member does not need to designate              needs to correct the reported amounts, you
a retirement date to begin the process unless              should correct the permanent separation event
requesting service pending disability or industrial        on the appointment in my|CalPERS which will
disability retirement.                                     allow you to update the sick leave/educational
                                                           leave amounts to the correct number and the
Section 5 - Member must select an option, and              member’s account will be adjusted.
to make an informed decision, they must first
request an estimate.                                       CONVERSION OF SICK LEAVE/EDUCATIONAL LEAVE
                                                           CREDITS FOR EMPLOYEES WORKING EIGHT HOURS PER
Section 11 - Member’s signature must be                    DAY
witnessed by a CalPERS representative or be
notarized.                                                 All employees, regardless of their work schedule
                                                           (6.6 hours, 10/4/40, 9/8/80, 52 hour, etc) will
SICK LEAVE/EDUCATION LEAVE                                 have any accumulated unused hours of sick
Employers must certify the separation information by       leave service credit/educational leave divided by
submitting it and any updates online using                 eight to determine the number of days to report
my|CalPERS. Separation information includes the            to CalPERS for the purposes of enhancing the
employee’s permanent separation date and any               retirement benefit.
unused sick leave or educational leave balances. If
the information is submitted prior to CalPERS              Sick leave is converted to service credit by: days
processing the member application the additional           of reported sick leave X .004 = service credit.
service credit will be included in the member’s initial    Example: 35 days X .004 equals .140 years of
retirement benefit. Otherwise the member’s account         service credit.
will be adjusted after the information is submitted.
                                                           NOTE:
It is imperative that you report a permanent               The accrual of sick leave/educational leave
separation when an employee retires or                     credits must be consistent for members of the
otherwise ends employment with your agency,                same group or class who work like or similar
regardless of the reason. All transactions within          hours. Service credit, which was not earned
mylCalPERS, including health and retirement,               through the “accrual of sick leave/educational
rely on the permanent separation date to be                leave” policy, may not be credited on an
reported to determine proper benefit eligibility           individual basis for the purposes of enhancing
and cost for both the employer and the member.             the retirement benefit. Unused sick
                                                           leave/educational leave for which a member
To receive sick leave credit or educational leave          receives compensation, (sick leave/educational
credit, the member’s retirement date must be within        leave cash out) should not be reported to
120 days from the date of separation from the              CalPERS for purposes of enhancing the
employer granting the sick leave or educational            retirement benefit.
leave. Educational leave shall ONLY apply to eligible

                                                      88
                                                   Disability Retirement or Industrial Disability Retirement


Determination — The disability decision is                  Section 1 - Member Information
based upon competent medical opinion; and all
medical and vocational information provided by              Section 2 - Retirement Information - Complete
the member, employer, and workers’                          only the employer name and member’s position
compensation carrier is considered in the                   title. The retirement date is not required.
determination. The determination is based on
actual/present disability, not prospective inability        Section 3 - Disability Information
to perform the job duties. In the event the
medical information supplied to CalPERS is                  Section 8 – Workers’ Compensation Information
insufficient to make a determination, CalPERS
may arrange an Independent Medical                          Section 12 - Employer Originated Application -
Examination (IME).                                          Signature must be made by the Duly Authorized
                                                            Official on file with CalPERS or processing will
NOTE:                                                       be delayed.
Generally, the disability retirement determination
can be made within three to six months after                The employer should not complete Section 5
CalPERS receives all required information for a             (Option Election), Section 6 (Retired Death
complete package. However, if additional                    Benefit), Section 7 (Survivor Continuance),
information is needed, this will extend the review          Section 9 (Tax Withholding Election), or Section
process.                                                    10 (CalPERS Health Coverage), or Section 11
                                                            (Member Signature and Notary). A
If the member is found to be disabled due to a              Supplemental Retirement Information form
mental disorder, competency will be decided                 will be sent to the member for additional
based on medical opinion. Conservatorship or a              information once the disability retirement is
valid Power of Attorney may be required before              approved by CalPERS.
benefits are payable. For Power of Attorney
instructions, please refer to the booklet Power             What to Submit with Application —
of Attorney (PUB 30).                                       The following documentation should be
                                                            submitted with the application the employer files
                                                            on behalf of the member:
NOTE:                                                       • Job Duty Statement (preferably Job
If the member is currently enrolled in the                      Analysis)
CalPERS health plan and becomes employed in
another job pending the determination of                    •   Physical Requirements of
disability retirement benefits, eligibility for                 Position/Occupational Title form
CalPERS health benefits may be affected after
                                                            •   Personnel Records
retirement.
                                                            •   Adverse Actions
Cancellation of Application — If a member
desires to cancel the disability retirement                 •   SPB Decisions
application, other than an employer originated              •   Investigation Reports
application, the request must be made in writing
to be valid. The member’s signature is required.            •   Medical information to support application
A cancellation is binding; the member must                      (e.g., Fitness for Duty reports, Doctor Notes,
thereafter re-apply whenever they are ready to                  etc.)
retire. If the disability retirement has been
approved, please refer to the “Member                       NOTE:
Alternatives Following Disability Determination”            Only an employer can cancel an Employer
section for more information.                               Originated Application.

EMPLOYER ORIGINATED APPLICATION                             TEMPORARY DISABILITY ALLOWANCE (TDA) —
When an employer is submitting the Disability               An employer is required to pay the employee a
Retirement Election Application (my|CalPERS                 Temporary Disability Allowance (TDA), provided
1200) on the member’s behalf, the following                 all of the following conditions have been met:
sections must be completed:                                 • The employee has exhausted their leave
                                                                 credits; and


                                                       89
                                                      Disability Retirement or Industrial Disability Retirement


•   The employee is placed on involuntary leave               has the right to participate in the claim through
    status; and                                               filing its own action against the responsible
                                                              party, intervening in the claim or filing a lien
•   The employer is applying for disability or                against any judgment recovered. If such a claim
    industrial disability retirement on the                   is settled without notifying CalPERS, we may
    employee’s behalf.                                        also be entitled to file a lawsuit against the
                                                              member for recovery under our subrogation
To determine the amount of the TDA, submit a                  rights.
Disability Estimate Request (my|CalPERS
1211) form. The request should be completed in                Member Alternatives Following the
full and mailed or faxed to:                                         Determination
                                                              When the member has been found to be “disabled,”
CalPERS
                                                              the member will be notified of the finding and
Customer Account Services Division
                                                              advised that they must be retired immediately. The
PO Box 942715
Sacramento, CA 94229-2715                                     member cannot cancel the application for disability
Fax: (916) 795-0371                                           retirement after disability has been determined.
                                                              However:
The request form must include the last day on
pay status. The recommended retirement date                   1. If the member is also eligible and applies to
to use on the application is the first of the month              retire for service (prior to the effective date of
the application will be sent to CalPERS.                         retirement for disability or within 30 days of
                                                                 notification of disability approval), the member
If the disability retirement is approved, CalPERS                may be retired for service.
will reimburse the employer the amount of TDA
that was paid to the member from the retroactive              2.   The member may also elect to separate from
portion of the retirement allowance. If the                        employment and accept a refund of
amount of TDA exceeds the retroactive amount,                      accumulated contributions in lieu of all future
the employer will be reimbursed from the                           rights and benefits under this System.
member’s monthly retirement allowance at the
rate of 10% until the reimbursement is satisfied.             3.   The member may appeal the approval
If the disability retirement is denied, the                        determination directly to CalPERS.
employer is responsible for paying the member
the difference between the TDA and the                        When the member has been found to be “not
employee’s salary. The member also receives                   disabled” and the application is denied, the member
leave credits for the time they were on TDA.
                                                              will be notified of the finding and provided the
                                                              opportunity to appeal the decision.
For additional information regarding TDA, please
refer to CalHR’s Personnel Management Liaison
(PML) memo 2002-005.                                          NOTE:
                                                              All appeals must be submitted in writing directly
Subrogation                                                   to CalPERS within 30 days from the date of the
Under the law, if someone other than the                      notification letter.
employer caused an injury that results in disability
retirement benefits being paid to the member,                 CalPERS is subject to the Administrative
CalPERS has the right to recover up to one-half of            Procedures Act (APA). Therefore, in case of an
the total retirement benefit costs from the                   appeal to the determination, the dispute must be
responsible party. This is known as the “right of             heard by an administrative law judge of the State
subrogation.”                                                 Office of Administrative Hearings.

If the member pursues a claim against any                     The APA is set forth in the Government Code and
person for the same injuries that also entitles the           the statutes describe the requirements and methods
member to a disability retirement from CalPERS                for conducting an administrative hearing.
(other than a Workers’ Compensation claim or
an uninsured motorist claim), the member must
inform CalPERS. This is true even if the claim
has not yet resulted in a court action. CalPERS

                                                         90
                                                       Disability Retirement or Industrial Disability Retirement


Retirement Effective Date                                      STATE 1ST-TIER
If the application was received within nine                    A State 1st-Tier member must have at least five
months after discontinuance of employment, or,                 years of service credit to be eligible for disability
in the case of retirement for disability, if the               retirement.
member was physically or mentally
incapacitated to perform their duties within nine              If the member has between five and 10 years,
months from the date the member discontinued                   OR 18½ or more years of service credit,
state service, the effective date of retirement will           multiply the years of service by 1.8% to
be the day following the last day of payroll.                  determine the percentage of final compensation.

In the case of an application for retirement filed             If the member has between 10 and 18½ years
with the Board of Administration more than nine                of service credit, add to that figure the number
months after discontinuance of the member’s                    of years until the member will be age 60 and
state service, the effective date shall be the first           multiply the TOTAL by 1.8% to determine the
of the month in which the application was                      percentage of final compensation. (The
received.                                                      maximum percentage allowable is 33 ⅓ %.)

If a member has been approved for disability                                       THEN
retirement, the law states the member must be
retired immediately. The member may remain on                  Multiply the percentage of final compensation by
pay status to use sick leave and/or                            the highest consecutive 12-month or 36-month
compensating time off for overtime to which the                average monthly salary to find the Unmodified
member is entitled. The determination of what                  Allowance. (If the member is eligible for service
sick leave and/or compensating time off that a                 retirement, the member will receive the higher
person is entitled to is a matter that must be                 allowance payable, service or disability).
resolved by each employer.
                                                               STATE 2ND-TIER
General Disability Calculation                                 A State 2nd-Tier member must have at least ten
You can get an idea of what the member’s                       years of service credit to be eligible for disability
monthly unmodified disability retirement                       retirement.
allowance will be. To do so, you need to know                  If the member has between 10 and 29.629½
three things:                                                  years of service credit, add to that figure the
                                                               number of years until the member will be age 65
                                                                                   nd
•   How many years of service credit the                       ( or age 67 under 2 Tier formula 1.25% @ 67)
    member has;                                                and multiply the TOTAL by 1.125% to determine
                                                               the percentage of final compensation. (The
•   The benefit formula (1.8% for State 1st-Tier               maximum percentage allowable is 33 ⅓ %)
    or 1.125% for State 2nd-Tier); and
•   The final compensation — based on the                      If the member has 29.629 years or more of
    highest consecutive 12 or 36 months of pay                 service credit, multiply the years of service by
    rate, not earnings, (usually the last 12 or 36             1.125% to determine the percentage of final
    months of employment). See the Final                       compensation.
    Compensation topic in this section for
    information about whether to use 12-month                                      THEN
    or 36-month compensation.
                                                               Multiply the percentage of final compensation by
Find the benefit factor and years of service                   the highest consecutive 12-month or 36-month
credit in the following groupings. Then follow the             average monthly salary to find the Unmodified
instructions using the worksheet at the bottom of              Allowance. (If the member is eligible for service
the next column.                                               retirement, the member will receive the higher
                                                               allowance payable, service or disability).




                                                          91
                                                         Disability Retirement or Industrial Disability Retirement


INSTRUCTIONS FOR COMPLETION OF THE                               NOTE:
    MY|CALPERS 1205                                              If a member retires on the day following the last
Upon approval of an application for disability                   day on the payroll, then the date of separation
retirement by the System, the Benefit Services                   and the last day on the payroll will be the same
Division will require payroll information to begin               date. If a member goes on leave of absence or
the disability retirement payments.                              is absent without leave, etc., at the time of
                                                                 retirement, then the date of separation and the
The Report of Separation and Advance                             last day on the payroll may not be the same.
Payroll Information (my|CalPERS 1205) must
be completed by the employer.                                    Section 3 – Unused Sick Leave at Time of
                                                                 Separation
The first section is to be completed by the                      If the member has a sick leave balance that was
member:                                                          not used at the time of separation from
                                                                 employment, report the total number of 8 hour
Section 1 – Employing Agency and Member                          days, not hours, of unused sick leave.
Information:                                                     Section 4 – Certification of Employer
                                                                 • Signature of Payroll Officer
•      Name of Employing Agency
                                                                 •   Title
•      Member’s name
                                                                 •   Date
                                                                 •   Phone number
         Figuring the Disability Allowance
                                                                 Immediately mail the my|CalPERS 1205 form to
                    Worksheet
                                                                 the address provided on the form. Failure to
    Years of Service     Benefit Factor    % of Final            submit the form on a timely basis may result in a
                                          Compensation           delayed warrant to the recipient.

                   X            %=            %                  NOTE:
                                                                 1. Do not combine contributions for
      % of Final            Final          Unmodified               maintenance and Special Compensation
    Compensation         Compensation      Retirement
                                           Allowance
                                                                    with normal contributions. Use the “other”
                                                                    column.
                   %X$               = $ _______                 2. Do not deduct retirement contributions from
                                                                    lump sum vacation payments.
•      Social Security Number                                    3. Do not delay submission of this form
                                                                    awaiting final payroll data. Estimate the last
•      Retirement date requested by the applicant                   period’s payroll information and label this
                                                                    line “Estimate”.
The following three sections are to be completed
by the employer:
Section 2 – Effective Separation or
Termination Dates
•      Separation Date
•      Termination Date
•      Last Day of on Pay Status
•      Beginning and ending dates of leave of
       absence with compensation
•      Explanation of the difference between the
       date of separation and last day on pay
       status, if any.




                                                            92
                                 EMPLOYMENT OF A RETIREE
CIVIL SERVICE ELIGIBILITY                                  The employer who unlawfully employs a retiree
In addition to the retirement law restrictions, all        will be required to:
retired annuitant appointments by state agencies           1. Pay CalPERS employer contributions that
must be based on Civil Service Act eligibility:                 should have been paid during the period of
A retired state civil service employee may be                   unlawful employment, plus interest.
appointed as a retired annuitant to a position
that is either (a) in the class in which the person        A retiree may work for a CalPERS employer (an
had permanent or probationary status or a                  employer who contracts with CalPERS for
Career Executive Assignment (CEA)                          retirement benefits) as a limited duration
appointment at the time of retirement; or (b) in           employee (retired annuitant) only as specified in
another class to which the person could have               California retirement law, which includes the
been permanently transferred, reinstated, or               provisions of the Public Employees’ Retirement
demoted at the time of retirement. A CalPERS               Law (PERL) and the Public Employees’ Pension
retiree who is not retired from civil service, i.e.        Reform Act of 2013 (PEPRA).
retired from non-state contracting agencies and
retired state employees exempt from civil                  180-DAY WAIT PERIOD
service, can only be appointed as a retired
annuitant if he/she qualifies for appointment              A retiree is not eligible to work for any employer
under other civil service provisions such as               in the same public retirement system from which
emergency appointment, temporary                           he or she retired without reinstating from
authorization (TAU) appointment or eligibility on          retirement, until 180 days after his or her
a civil service employment list for the position.          retirement date, except for certain specified
                                                           exceptions (G.C. section 7522.56). The
For more information, see Personnel                        exceptions for state agencies and California
Management Policy and Procedures manual                    State Universities (CSU) are:
pages 360.1 – 360.4 available from the
California Department of Human Resources.                  •   The retiree is a firefighter, or a public safety
(CalHR)                                                        officer as defined in G.C. 3301 (peace
                                                               officer) who performs peace officer or
GENERAL RULE                                                   firefighter retired annuitant work. If the
G.C. section 21220 provides that a retiree on                  retiree is on service retirement, please see
service, disability, or industrial disability                  the Bona Fide Separation in Service
retirement receiving a monthly allowance from                  Requirement in this section.
CalPERS, shall not, except as provided, be                 •   The state employer obtains the Department
employed in any capacity by a CalPERS                          of Human Resources’ (CalHR) approval
employer unless the retiree has first been                     certifying the nature of the employment and
reinstated from retirement.                                    that the appointment is necessary to fill a
                                                               critically needed position before the 180
Any retiree employed in violation of this                      days has passed.CalPERS must be
section is subject to reinstatement to                         provided the CalHR approved exception to
CalPERS membership as of the date the                          place in the retiree’s CalPERS record.
unlawful employment occurred.                              •   The retiree is eligible to participate in the
                                                               Faculty Early Retirement Program (FERP)
The unlawfully employed retiree will be required               pursuant to a collective bargaining
to:                                                            agreement with the California State
1. Reimburse CalPERS for all retirement                        University that existed prior to January 1,
    allowance received during the period of                    2013 or has been included in subsequent
    unlawful employment.                                       agreements.
2. Pay CalPERS employee contributions that                 •   Any public retiree appointed to a full-time
    should have been paid during the period of                 position on a State board or commission.
    unlawful employment, plus interest.                        The retiree will be required to suspend his or
                                                               her retirement allowance and become an
                                                               active member of CalPERS, unless the

                                                      93
                                                                                  Employment of a Retiree


    appointment is non-salaried (G.C. section             is in compliance with the retirement law and
    7522.57).                                             regulations.

The 180-day waiting period provision applies              NOTE:
without exception to retirees who receive a               This information applies ONLY to limited
golden handshake or any other employer                    duration employment. If the retiree is found to be
incentive to retire. Retired annuitants who               employed in a permanent full-time or part-time
started working before January 1, 2013, are not           position regardless of the number of hours
required to cease working to complete a 180-              worked, the retiree will be subject to mandatory
day waiting period. However, any subsequent               reinstatement from retirement into CalPERS
reappointments must meet this requirement.                membership, retroactive to the date the unlawful
                                                          employment occurred.
As currently required, employers must continue
to report all the hours worked by any retired             BONA FIDE SEPARATION IN SERVICE
annuitant in my|CalPERS in order to monitor the
960-hour limit per fiscal year. CalPERS retirees             RETIREMENT
who are hired directly by a CalPERS employer              If the service retiree is under “normal retirement
as independent contractors, contract employees,           age” at retirement, limited duration employment
and consultants are considered retired                    with a CalPERS employer is not allowed, even if
annuitants and must be reported and tracked in            an exception to the 180-day wait period applies,
my|CalPERS. See Employment of a Retiree as                unless both of the following conditions are met:
“Independent Contractor” or “Consultant”
section.                                                  1.   There was no agreement to return to work
                                                               as a retired annuitant between the member
my|CalPERS will be updated to validate the 180-                and the employer before the member
day waiting period for all new enrollments and                 retired, and
will flag any potential violations of this waiting
period for additional review. Potential violations        2.   There is a bona fide break in service of 60
will not prohibit the online my|CalPERS                        days between the retirement date and the
enrollment. To enroll a retiree under the                      date the retiree’s employment will begin.
certification exception to the 180-day waiting
period, the employer or CalHR must submit a               “Normal retirement age” is the age named in the
copy of the certification to CalPERS. Please              member’s retirement benefit formula. For
include a copy of the retiree’s employment                example, the “normal retirement age” for a 2%
agreement along with the certification and mail           @ 55 retirement benefit formula is 55. If the
the documents to:                                         member has more than one retirement benefit
                                                          formula, then the “normal retirement age” is the
        CalPERS                                           highest benefit formula age, even if the
        Benefit Services Division                         member’s service in that formula was with a
        PO Box 942711                                     previous CalPERS employer and/or several
        Sacramento, CA 94229-2711                         years prior. Members can review their retirement
                                                          formulas on their Annual Member Statements,
There will be no other changes to the enrollment          available online, via their my|CalPERS member
process. Specific questions about the 180-day             account, or mailed each November.
wait process should be directed to the Benefit
Services Division through the CalPERS                     Example: Joe Smith is a state miscellaneous
Customer Contact Center at 888 CalPERS (or                member who retired June 30, 2012 at age 52
888-225-7377).                                            with 20 years of service. His retirement benefit
                                                          formula at retirement was 2% at 55. Because he
LIMITED DURATION EMPLOYMENT                               has not reached his “normal retirement age” of
                                                          55, he must have a bona fide separation in
Under the following provisions, reinstatement
                                                          service which means: (1) he and the CalPERS
from retirement is not required (except as
                                                          employer must not have had a predetermined
noted), and no employee or employer
                                                          agreement for him to return to work before his
contributions should be made to CalPERS. The
                                                          retirement, and (2) he must have a 60 day
employer and the retiree have equal
responsibility to ensure the retiree’s employment

                                                     94
                                                                                      Employment of a Retiree


separation between his retirement date and the                employed during the last fiscal year of service
first day of employment as a retired annuitant.               prior to retirement, whichever is less (G.C.
                                                              section 21227).
If the retiree is at or above the normal retirement
age or retired on disability or industrial disability,        CSU Non-academic Retirees
then G.C. section 21220.5 restrictions do not                 A retiree may be employed in a limited duration
apply.                                                        appointment by a school employer or by the
                                                              Trustees of CSU (1) during an emergency to
The only exception to the G.C. section 21220.5                prevent stoppage of public business or (2)
restrictions for retirees under normal retirement             because the retiree has skills needed in
age is in emergency situations as defined in G.C.             performing work of limited duration if that service
section 8558.                                                 does not exceed a total of 960 hours for all such
                                                              employers in any fiscal year.
Refer to Circular Letter 200-181-04, Employment
After Retirement with a CalPERS Covered                       The compensation for the appointment shall not
Employer dated September 3, 2004, which                       be less than the minimum, nor exceed the
contains detailed information about the law,                  maximum monthly base salary paid to other
applicable regulations and frequently asked                   employees performing comparable duties divided
questions. Circular Letters can be referenced on              by 173.333 to equal an hourly rate. Retired
the CalPERS Website at www.calpers.ca.gov.                    annuitants shall not receive any benefit, incentive,
                                                              compensation in lieu of benefits, or other forms of
NOTE:                                                         compensation in addition to the hourly rate (G.C.
No employee or employer contributions are                     section 21229).
made to CalPERS for retired annuitant
employment. Refer to the PIMS manual or                       UNEMPLOYMENT BENEFITS AND RETIRED
CSUC manual for information on how to properly                   ANNUITANT EMPLOYMENT
code a retired annuitant appointment.                         California law prohibits the reappointment of a
                                                              retired annuitant by any public employer if, during
STATE AGENCY                                                  the 12-month period prior to reappointment, the
An otherwise eligible retired state employee may              retiree received unemployment insurance
be employed in a limited duration appointment to              compensation for prior retired annuitant
a position not to exceed 960 hours in any fiscal              employment with any public employer.
year for all CalPERS employers; either (1)
during an emergency to prevent stoppage of                    A retiree shall certify in writing to the employer
public business or (2) because the retired                    upon accepting an offer of post retirement
employee has skills needed in performing work                 employment that he or she is in compliance with
of limited duration.                                          this requirement (G.C. 7522.56 (e)(1)).

The compensation for the appointment shall not                If a currently employed retiree is discovered to
be less than the minimum, nor exceed the                      have received unemployment insurance
maximum monthly base salary paid to other                     compensation based on prior retired annuitant
employees performing comparable duties                        employment with any public employer, the
divided by 173.333 to equal an hourly rate.                   current employment must be terminated on the
Retired annuitants shall not receive any benefit,             last day of the current pay period and the retiree
incentive, compensation in lieu of benefits, or               shall not be eligible for reappointment for 12
other forms of compensation in addition to the                months following the termination of the current
hourly rate (G.C. section 21224).                             employment. (G.C. sections 21224, 21225,
                                                              21226, 21227, and 21229).
CALIFORNIA STATE UNIVERSITY (CSU)
                                                              A violation of this provision will not result in
CSU Academic Retirees                                         mandatory reinstatement from retirement for the
A CSU academic retiree may be employed, in any                retiree.
fiscal year as a member of the academic staff of
CSU not to exceed 960 hours for all employers or              Questions regarding post retirement
50 percent of the hours the member was                        employment of retirees should be directed to the


                                                         95
                                                                                   Employment of a Retiree


Benefit Services Division through the CalPERS                   director of a State department, or the
Customer Contact Center at 888 CalPERS (or                      governing board of a contracting agency,
888-225-7377).                                                  may appoint a CalPERS retiree to serve as
                                                                a full time member on a state board or
RETIRED ANNUITANT SELF CERTIFICATION                            commission, salaried or non-salaried. If the
   FORM                                                         retiree serves as a non-salaried member,
CalHR Form 715, a Retired Annuitant Self-                       the retiree may serve without reinstating
Certification form, can be downloaded from the                  from retirement. If the retiree accepts the
California Department of Human Resources                        salary, the retiree must reinstate from
Website at www.calhr.ca.gov.                                    retirement (G.C. section 7522.57(c) and
                                                                G.C. section 21221(a)). Please see the
                                                                Membership Section for membership
AUTHORIZATION FOR RELEASE OF                                    election information.
   UNEMPLOYMENT INSURANCE RECORDS FOR
   RETIRED ANNUITANTS                                        2. The Governor, Speaker of the Assembly, the
EDD Form DE 1181 can be downloaded from                         President pro Tempore of the Senate,
the Employment Development Department                           director of a State department, or the
Website at www.edd.ca.gov.                                      governing board of a contracting agency,
                                                                may appoint a retiree who receives a
California State Universities (CSU) are not                     pension from another public retirement
required to use these forms when employing                      system to serve as a full time member on a
retirees; however, they may require retirees to                 state board or commission. If the retiree
provide a current Unemployment Insurance                        serves as a nonsalaried member, the retiree
Benefit (UIB) print out indicating if they have                 may serve without suspending the
collected unemployment insurance benefits                       retirement benefit from the other system. If
within the previous 12 months.                                  the retiree accepts the salary, the retiree
                                                                must suspend the retirement benefit from
JUROR OR ELECTION OFFICER                                       the other system and become a member of
Any retiree may serve as a juror or election                    CalPERS. (G.C. section 7522.57(d)(1)(2)(i)
officer and receive fees for such service (G.C.                 and G.C. section 21221(a)). Please see the
section 21221(c)).                                              Membership Section for membership
                                                                election information.
SCHOOL CROSSING GUARDS
                                                             3. The Governor, Speaker of the Assembly, the
Any retiree may be employed as a school
                                                                President pro Tempore of the Senate,
crossing guard (G.C. section 21221(b)).
                                                                director of a State department, or the
                                                                governing board of a contracting agency
SERVICE FOR LITIGATION                                          may appoint any retiree to serve as a part
For a retired State employee, this employment                   time member on a state board or
must be approved by CalHR. A retired former                     commission. The salary can be no more
employee may be employed to prepare for                         than $60,000 annually which shall be
potential or actual litigation or to testify in trial           increased in any fiscal year in which a
proceedings or at a hearing and be paid per                     general salary increase is provided to state
diem and necessary travel expenses, not to                      employees (G.C. section 7522.57(b) and
exceed the rate paid other persons for similar                  G.C. section 21221(a)).
services. The per diem paid must be reduced by
the daily equivalent of the retiree’s retirement             SPECIAL APPOINTMENTS – THE 180-DAY WAIT
annuity. Contact the CalPERS Customer
Contact Center at 888 CalPERS (or 888-225-                      PERIOD DOES APPLY
7377) to obtain the amount of the retiree’s                  1. The Governor, Speaker of the Assembly, the
monthly annuity benefit.                                        President pro Tempore of the Senate,
                                                                director of a State department, or the
SPECIAL APPOINTMENTS – THE 180-DAY WAIT                         governing board of a contracting agency,
                                                                may appoint any retiree to serve as a
   PERIOD DOES NOT APPLY                                        member of a state advisory committee,
1. The Governor, Speaker of the Assembly, the
   President pro Tempore of the Senate,

                                                        96
                                                                                        Employment of a Retiree


    salaried or nonsalaried (G.C. section                      must be enrolled as retired annuitants in
    21221(a)).                                                 my|CalPERS and the hours they work reported
                                                               with the hourly payrate as defined in G.C.
2. The Legislature either house, or a legislative              section 21224 for state agencies and G.C.
   committee may appoint any retiree to a                      section 21229 for CSU.
   position deemed by the appointing power to
   be temporary in nature (G.C. section                        EMPLOYMENT THROUGH A THIRD PARTY
   21221(f)).                                                     EMPLOYER (ALL RETIREES)
                                                               Before employing a retiree through a third party
ELECTIVE POSITIONS                                             employer or temporary employment agency,
Any retiree may serve as an elective officer                   please contact CalPERS. If the retiree will be an
without reinstatement from retirement; however,                employee of the CalPERS employer under
any part of the retirement allowance based on                  common-law principles, the retiree employment
previous service in that same elected office shall             could be subject to CalPERS restrictions, even if
be suspended during incumbency in the elected                  a third party employer pays the retiree’s wage.
office. When the retiree vacates the elected
office, the suspended allowance shall be                       Direct specific questions about employment of a
resumed prospectively (G.C. sections 21221(d)                  retiree through a third party employer or
and 21222).                                                    temporary employment agency to the Benefit
                                                               Services Division at 888 CalPERS (or 888-225-
EMPLOYMENT BY A NON-CALPERS AND NON-                           7377) or submit your questions along with a
   PUBLIC RETIREMENT SYSTEM EMPLOYER                           copy of the third party contract with the scope of
A retiree receiving a monthly allowance from                   duties to:
CalPERS may be employed by any employer
not participating in CalPERS or any non-public                          CalPERS
retirement system without reinstatement from                            Benefit Services Division
retirement. A disability retirement pension                             P.O. Box 942711
(except in the case of industrial disability                            Sacramento, CA 94229-2711
retirement) may be subject to an earnings limit
during such employment, until the retiree attains              EMPLOYMENT OF A DISABILITY/INDUSTRIAL
the minimum age for voluntary service                             DISABILITY RETIREE
retirement applicable to the member’s                          The Board may approve CalPERS reemployment
classification. It is the responsibility of the retiree        without reinstatement for a member who is receiving
to report to CalPERS any salary earned from
                                                               a disability/industrial disability retirement allowance
such an employer.
                                                               and who is offered a specific job in a position that is
                                                               significantly different from which the member retired.
A CSU academic retiree may be employed with a
                                                               Such employment cannot begin prior to the Board’s
school employer in a certificated STRS-qualified
                                                               approval (G.C. section 21228).
position without reinstatement provided that he or
she has never previously made a STRS-PERS
                                                               To request reemployment approval:
election. Please see the section within this guide:
Membership-School Employment: CalPERS or
                                                               1.   The retiree needs to complete and sign Section
CalSTRS?
                                                                    1 of the Request to Work While Receiving
                                                                    Disability/Industrial Disability Retirement
EMPLOYMENT OF A RETIREE AS AN                                       Benefits form (my|CalPERS 1199) provided in
   “INDEPENDENT CONTRACTOR”,                                        the Employment After Retirement publication
   “CONSULTANT”, OR “CONTRACT                                       (PUB 33).
   EMPLOYEE”
CalPERS retirees working directly for a                        2.   The prospective employer completes Section 2
CalPERS employer as an independent                                  of the request form, stating their “intent to hire”
contractor, consultant or in any other direct                       the retiree upon CalPERS approval. Attach a
contract agreement with the employer are                            copy of the current job duty statement and a
subject to the retirement law restrictions for
retired annuitant employment. These retirees

                                                          97
                                                          Employment of a Retiree


   completed and signed Physical Requirements
    of Position/Occupational Title form
    (my|CalPERS 0700) for the position which the
    retiree is requesting to work.
1. Provide a medical report from the retiree’s
   treating physician, who specializes in the
   member’s disabling condition, stating that
   he/she has recently examined the retiree,
   reviewed the job duty statement, along with a
   completed and signed Physical Requirements
   of Position/Occupational Title form
   (my|CalPERS 0700) and finds the retiree is able
   to perform all tasks without restriction or
   limitation. CalPERS may require an independent
   medical evaluation to supplement the doctor’s
   report. If so, CalPERS will select the physician,
   schedule the appointment, and pay for the
   examination.

Upon approval of the reemployment, the retiree will
be required to report monthly earnings to CalPERS,
as the disability/industrial disability retirement
pension is subject to an earnings limit for as long as
the employment continues.

NOTE:
No employee or employer contributions are
made to CalPERS for these types of
employment.

For specific questions concerning employment
of a CalPERS retiree, please review the
publication Employment After Retirement
(PUB 33) available in the Forms & Publication
Center on the CalPERS Website at
www.calpers.ca.gov or contact CalPERS at
888 CalPERS (or 888-225-7377).




                                                     98
                          REINSTATEMENT FROM RETIREMENT
PUBLIC EMPLOYEES’ PENSION REFORM ACT OF                    Website at www.calpers.ca.gov or by
   2013 (PEPRA)                                            calling888 CalPERS (or 888-225-7377).
Employees who reinstate from retirement on or
after January 1, 2013 with the same employer               Please be aware that reinstatement to an
from which they retired would be entitled to the           employer other than the one from which the
retirement formula that was in effect on                   member previously retired can result in the loss
December 31, 2012.                                         of the previous retirement benefits. The retiree
                                                           should contact the new employer’s personnel
                                                           office to clarify any questions about health and
NOTE:
                                                           dental benefits, vision care, unused sick leave
All State agencies, including CSU, are treated as a
                                                           and death benefits available to that employer’s
single employer under PEPRA. Additionally, all
                                                           employees and retirees before reinstating. A
school employers are treated as a single employer
                                                           previous Golden Handshake is permanently lost
as well.
                                                           upon reinstatement with any employer.
However, such employees who reinstate from                 Reinstatement from retirement affects the cost-
retirement with a different employer may be                of-living adjustment (COLA). The annual COLA
enrolled into one of the new retirement formulas           increase will begin in the second calendar year
depending on whether or not they are                       after re-retirement.
considered a “new member” under PEPRA.
                                                           To retire again following reinstatement (re-
NOTE:                                                      retire), the member must submit a new
Please see the Membership chapter of this Guide            application for retirement. The member should
for the definition of a new PEPRA member.                  contact the employer’s personnel office or
                                                           CalPERS prior to retirement to obtain the most
If you wish to hire a retiree in a permanent position,     current application document(s).
whether full-time or part-time, the retiree must
reinstate from service retirement into active              SERVICE RETIREMENT
CalPERS membership. A member on service                    The Board, pursuant to the provisions of G.C.
retirement does not need approval prior to beginning       section 21196, may reinstate a person who has
active employment. However, to avoid an                    been retired under this System for service upon
overpayment of retirement benefits and prevent             CalPERS receipt of the completed Reinstatement
payroll reporting problems for the employer, it is         From Service Retirement Application
important to submit the Reinstatement From                 (my|CalPERS 0668). This application is enclosed in
Service Retirement Application (my|CalPERS                 the Reinstatement From Retirement publication
0668) in a timely manner.                                  (PUB 37).

NOTE:                                                      The member is responsible for completing Sections
A retired person on a disability or industrial             1 and 3. Section 2 must be completed by a Human
disability must be approved for reinstatement              Resource or Personnel representative of the
prior to being hired as a regular employee.                employer certifying the start date of the permanent
                                                           employment.
The publication Reinstatement From
Retirement (PUB 37) includes the reinstatement             A person who has been retired under this System for
applications for retired members on service,               service, following an involuntary termination of the
disability, or industrial disability retirement as         person’s employment, and who is subsequently
well as information about the voluntary                    reinstated to such employment by action on or after
reinstatement process in general. There is also            October 1, 1965, pursuant to an administrative or
information about mandatory reinstatement and              judicial proceeding, shall be returned to employment
the other consequences of unlawful or “illegal”            status for the period specified by the judgment. The
employment. The publication is available in the            requirements of Section 21196 shall not apply in this
Forms & Publications Center on the CalPERS
                                                           case (G.C. section 21198).

                                                      99
                                                                            Reinstatement from Retirement


A person who has been retired under this System for             •   Provide a current written report from their
service may be reinstated from retirement pursuant                  treating physician, specializing in the
to this article without regard to the requirements of               member’s disabling condition that indicates
G.C. section 21196, upon the retiree’s application to               the job duty statement and the Physical
CalPERS, if upon reinstatement, the retiree will be                 Requirements of Position/Occupational
appointed by the Governor to any state office or                    Title form (my|CalPERS 0700) was
employment (G.C. section 21199).                                    reviewed and the member was recently
                                                                    examined and is found able to fully perform
When a person is reinstated from retirement, the                    the tasks of the job duties without limitation
retirement allowance is cancelled and the retiree                   or restrictions.
becomes a member of the System as of the date of
                                                                If the member is requesting reinstatement into a
reinstatement. The retiree’s individual account shall
                                                                different position from which they retired, the
be credited with the actuarial equivalent of the
                                                                prospective employer must complete Section 3
retiree’s annuity at the date of reinstatement, not to
                                                                stating their intent to hire the member upon
exceed the amount of accumulated contributions at               CalPERS approval (G.C. sections 21192 and
the date of retirement (G.C. section 21200).                    21193).

DISABILITY/INDUSTRIAL DISABILITY RETIREMENT                3.   A member retired for industrial disability may
1. The Board may require any member receiving a                 request approval from CalPERS to reinstate to a
   disability/industrial disability retirement                  position which is classified as Miscellaneous.
   allowance, under the minimum age for voluntary
   retirement for service, to undergo a medical                 To request approval, the member must:
   examination. If CalPERS determines that such                 • Complete Sections 1 and 2 of the Request
   recipient is not incapacitated for duty, the                     for Reinstatement from
   agency shall be notified that such person is                     Disability/Industrial Disability Retirement
   eligible for reinstatement to duty. The fact that                form (my|CalPERS 0669) found in the
   the member was retired for disability/industrial                 document center of my|CalPERS;
   disability does not prejudice any right to
   reinstatement to duty, which the member may                  •   Provide a current job duty statement and a
   claim. The member’s disability/industrial                        completed and signed Physical
   disability retirement allowance will be canceled                 Requirements of Position/Occupational
   on the effective date of the employer’s job offer                Title (my|CalPERS 0700) form for the
   (G.C. sections 21192 and 21193).                                 position; and

2. Any retiree may request approval from CalPERS                •   Provide a current written report from their
   to reinstate, whereby the retirement allowance is                treating physician, specializing in the
   canceled and the member resumes active                           member’s disabling condition that indicates
   member status, including earning additional                      the job duty statement and the Physical
   service credit towards their subsequent retirement.              Requirements of Position/Occupational
                                                                    Title (my|CalPERS 0700) form were
    To request approval, the member must:                           reviewed, that the member was recently
    • Complete Section 1 of the Request for                         examined and is found able to fully perform
        Reinstatement from
                                                                    the tasks of the job duties without limitation
        Disability/Industrial Disability
                                                                    or restrictions.
        Retirement form (my|CalPERS 0669)
        found in the document center of
                                                                The prospective employer must:
        my|CalPERS;
                                                                • Complete Section 3 stating their intent to
    •   Provide a current job duty statement for the               hire the member upon CalPERS approval
        position and a completed and signed                        (G.C. sections 21192 and 21193);
        Physical Requirements of
        Position/Occupational Title form                        Upon subsequent retirement, the member’s
        (my|CalPERS 0700);                                      allowance will be recalculated based on the
                                                                highest final compensation period during


                                                     100
                                                              Reinstatement from Retirement


  employment using the same retirement benefit
  formula for industrial disability and adding an
  annuity for the additional time worked after
  reinstatement. If the member is eligible for a
  service retirement after the miscellaneous
  employment, the member may receive
  whichever allowance is greater, but will retain
  the industrial disability retirement classification
  (G.C. sections 21197 and 21200).

4. If the member whose disability retirement has
   been canceled does not re-enter CalPERS
   covered employment, an amount which is the
   actuarial equivalent of the member’s annuity at
   cancellation shall be credited to the individual
   account, and shall be refunded unless the
   member is eligible to elect, and does elect, to
   allow their accumulated contributions to remain
   in the retirement fund (G.C. section 21172).




                                                        101
                 BENEFICIARY DESIGNATION (AFTER RETIREMENT)
NOTIFICATION OF CHANGE IN                                    The publication is available in the Forms &
   BENEFICIARY STATUS                                        Publications Center on the CalPERS Website at
It is important for a retired member to contact              www.calpers.ca.gov.
CalPERS to request a Changing Your Beneficiary
or Monthly Benefit After Retirement publication              If the retiree wants his or her statutory
(PUB 98) when any one of the following qualifying            beneficiary(ies) to receive the lump sum benefits
events occur because his or her designated                   payable, there is no need to file a PERS-BSD-509P.
beneficiary’s entitlement to certain CalPERS                 However, filing PERS-BSD-509P may help us locate
benefits could be affected.                                  the person(s) upon the retiree’s death.

•    Marriage or Registration of Domestic                    The retiree’s spouse or domestic partner is required
     Partnership of the retiree.                             to sign the PERS-BSD-509P acknowledging the
                                                             designation made by the retiree. If the retiree does
•    Legal separation, dissolution or annulment of the       not certify they have no spouse/partner or the
     retiree’s marriage, or termination of the retiree’s     document does not include the spouse’s or partner’s
     domestic partnership, if initiated after the            signature, a Justification for Absence of
     designation was filed.                                  Spouse’s Signature (PERS-BSD-800) must be
                                                             completed and submitted with their designation.
•    Birth or adoption of a child.
                                                             NOTE:
Should any one of these events occur, a retiree’s            A retiree’s designation and benefit entitlement to
existing beneficiary designation for the balance of          any lump sum death benefit may be affected by
                                                             any domestic relations court order, which
Option 1 contributions, the lump sum death benefit,
                                                             awards a current or ex-spouse or partner a
or the balance of Temporary Annuity payments are
                                                             community property interest in the retiree’s
automatically revoked. Once the designation is
                                                             CalPERS retirement account.
revoked, lump sum benefits will be paid to the
statutory beneficiaries in the following sequence:
                                                             For an explanation of the limited situations under
                                                             which a retiree may change their optional settlement
1.   To the retiree’s spouse/registered domestic
                                                             and/or life beneficiary designation after retirement,
     partner, or if none;
                                                             please refer to the Changing Your Retirement
2.   To the retiree’s natural or adopted children,
                                                             Option or Life Option Beneficiary publication
     share and share alike, or if none;
                                                             (PUB 98). The publication is available on the
3.   To the retiree’s parents, share and share alike,
                                                             CalPERS Website at www.calpers.ca.gov.
     or if none;
4.   To the retiree’s brothers and sisters, share and
                                                             A survivor or beneficiary who is receiving an
     share alike, or if none;
                                                             allowance following the death of the retiree may
5.   To the retiree’s estate, if probated. If the estate
                                                             designate a beneficiary to receive any unpaid
     does not require probate, but there is a trust,
                                                             allowance by completing and filing a Designation
     benefits will be paid to the trust. If there is no
                                                             for Beneficiary’s or Survivor’s Prorated
     trust, benefits will be paid to the surviving next
                                                             Allowance (PERS-BSD-509B) form with CalPERS.
     of kin in the order prescribed by law.

A retiree may designate a new beneficiary by
obtaining a Changing Your Beneficiary or
Monthly Benefit After Retirement publication
(PUB 98), which includes a Post Retirement Lump
Sum Beneficiary Designation Form (PERS-BSD-
509-P) and returning the completed form to
CalPERS.



                                                       102
                                                                  Beneficiary Designation after Retirement


NOTE:                                                       If the retiree’s retirement date is before
If a retiree marries or enters into a registered            January 1, 1990 and one of the three events
domestic partnership, the new spouse/domestic               occurred more than 10 years following their
partner is not automatically entitled to a monthly          retirement date, they are not entitled to an
death benefit. The retiree would have to modify             allowance increase. There is no ‘pop-up’
the Option and name a new beneficiary. A                    increase if the retiree elected Option 2W or 3W
                                                            (W = waived pop-up). If the retiree feels they are
modification will cause a reduction in the
                                                            entitled to an increase, they should request the
retiree’s allowance to provide an ongoing
                                                            Changing Your Beneficiary or Monthly
allowance with health and dental coverage to
                                                            Benefit After Retirement (PUB 98), which
the new spouse or domestic partner. For more                contains a Request for Option 2 or 3 ‘Pop-Up’
information, refer to the Changing Your                     Increase form (PERS-0M0015-DMC).
Beneficiary or Monthly Benefit After
Retirement (PUB 98) available on the CalPERS                ‘POP-UP’ EFFECTIVE DATE
Website at www.calpers.ca.gov.
                                                            Beneficiary Death
QUALIFYING FOR ‘POP-UP’ BENEFITS                            The retiree’s allowance will increase to a higher
                                                            allowance effective on the first of the month
If the retiree elected the Option 2 or 3 benefit on         following the beneficiary’s month of death.
or after January 1, 1990, the retiree’s allowance
will increase to a higher allowance, if one of the          Dissolution of Marriage, Termination of
following events occurs:                                    Domestic Partnership, Legal Separation, or
                                                            Annulment
•   The retiree’s beneficiary dies.                         The retiree’s allowance will be increased to a
                                                            higher allowance effective the first of the month
•   The retiree’s Option 2 or Option 3                      following CalPERS receipt of the judgment
    beneficiary is the retiree’s spouse or                  awarding them total interest in their CalPERS
    registered domestic partner and they                    benefit.
    divorce, legally separate, or the marriage is
    annulled and they provide CalPERS with a                Non-Spouse/Non-Domestic Partner Beneficiary
    copy of their judgment that awards the                  Disclaimer
    member the entire community property                    The retiree’s beneficiary will be asked to sign a
    interest in their CalPERS benefits.                     Non-Spouse/Non-Domestic Partner
The retiree’s non-spouse/non-domestic partner               Disclaimer of CalPERS Benefits (my|CalPERS
beneficiary waives entitlement to the Option 2 or           0362) form, which will be provided by CalPERS
Option 3 benefit by filing a Non-Spouse/Non-                upon request, which must be signed, notarized
Domestic Partner Disclaimer of CalPERS                      and approved by CalPERS.
Benefits (my|CalPERS 0362) form, which will
be provided by CalPERS upon request, which                  The retiree’s allowance will increase effective
must be signed, notarized and approved by                   the first of the month following CalPERS’ receipt
CalPERS.                                                    of the properly completed and notarized Non-
                                                            Spouse/Non-Domestic Partner Disclaimer of
If the retiree’s retirement date is before                  CalPERS Benefits (my|CalPERS 0362) form.
January 1, 1990 and one of the three events
listed above occurred less than 10 years
following the retirement date, the retired
member’s allowance may be increased to the
actuarial equivalent of the Unmodified
Allowance.




                                                      103
                                                                 Beneficiary Designation after Retirement


CHANGING BENEFICIARY DESIGNATIONS AND                          b) Option 1
   MODIFYING AN OPTION AND/OR LIFE                                • The retired member can modify their
                                                                    Option 1 to an Option 2, 2W, 3, 3W, or
   OPTION BENEFICIARY                                               4 and name their current
A retiree who elected the Unmodified Allowance                      spouse/domestic partner as
or Option 1 may change the beneficiary for the                      beneficiary.
lump sum retired death benefit, the balance of
Option 1 or balance of Temporary Annuity at any                c) Option 2, 2W, 3, 3W, or 4
time.
                                                                  • If retired member has a former
                                                                    spouse/domestic partner and they are
A retiree can also modify their current retirement
                                                                    not the Option 2, 2W, 3, 3W, or 4
election and name a new beneficiary for a
                                                                    beneficiary, they can modify their
lifetime option allowance after a qualifying event
                                                                    election to an Option 1, 2, 2W, 3, 3W,
(as described below), provided their current
                                                                    or 4 and name their current
lifetime option beneficiary is not a former or
                                                                    spouse/domestic partner as
legally separated spouse/domestic partner who
                                                                    beneficiary.
has a community property interest in their
CalPERS retirement benefit.
                                                           NOTE:
NOTE:                                                      If the retired member’s former spouse or former
Electing a modification of option reduces the              domestic partner is the retired member’s
retiree’s current allowance. The amount of the             beneficiary, see the Dissolution of Marriage,
retiree’s allowance reduction depends upon the             Legal Separation, or Annulment section for
retiree’s age and the age of their new                     information on their ability to modify their
beneficiary at the time of the election. Modifying         allowance or retirement option.
a retiree’s option is also referred to as a
“recalculation of option.”                                 3. Dissolution of Marriage, Termination of
                                                              Domestic Partnership, Legal Separation,
                                                              or Annulment
QUALIFYING EVENTS                                             If the retired member elected:
The following events allow the retiree to modify
their allowance or retirement option and name a                a) Unmodified Allowance and Option 1
new beneficiary.                                                  • This is not a qualifying event.

1. Death of Retirement Option Beneficiary                      b) Option 2, 2W, 3, 3W, or 4
   If the retired member elected:                                 • If the retired member’s former or
                                                                     legally separated spouse/domestic
    a) Unmodified Allowance or Option 1                              partner is the Option 2, 2W, 3, 3W, or
       • The death of their beneficiary is not a                     4 beneficiary and the
         qualifying event.                                           dissolution/termination or legal
    b) Option 2, 2W, 3, 3W, or 4                                     separation judgment on retired
       • The retired member can modify their                         community property awards the
         election of the option 2, 2W, 3, 3W, or 4                   member the entire interest in the
         to another option and name a new                            CalPERS retirement, their beneficiary
         beneficiary.                                                can be changed and they can modify
                                                                     the election to an Option 1, 2, 2W, 3,
2. Retired Member’s Marriage or Entry into                           3W, or 4 and name a new beneficiary.
   a Registered Domestic Partnership
   If the retired member elected:

    a) Unmodified Allowance
       • The retired member can modify their
         election of the Unmodified Allowance to
         an Option 1, 2, 2W, 3, 3W, or 4 and
         name their current spouse/domestic
         partner as beneficiary.

                                                     104
                                                                 Beneficiary Designation after Retirement


                                                           Effective Date for Changing an Option
NOTE:
If the retiree’s former or legally separated
spouse or domestic partner is their Option 2,              If the retiree made an election to change their
2W, 3, 3W, or 4 beneficiary and the                        option within 12 months of the qualifying event,
dissolution/termination or legal separation                the effective date is the first of the month
judgment dividing the community property does              following CalPERS receipt of the completed
not award the retiree the entire interest in their         election document. Both the retiree and their
CalPERS retirement, the retiree’s former or                new beneficiary must be alive on the effective
legally separated spouse or domestic partner               date.
cannot be removed as beneficiary.
                                                           If the retiree makes an election to modify their
                                                           option more than 12 months after the qualifying
4. Non-Spouse/Non-Domestic Partner                         event, the modification will not become effective
   Beneficiary Disclaims Lifetime Allowance                until 12 months after the election is made. Both
   If the retired member elected:                          the retiree and their new beneficiary must be
                                                           alive on the deferred election effective date.
    a) Unmodified Allowance or Option 1, 2, 2W,
       3, 3W, or 4                                         Insurance Coverage for a New
       • Regardless of what option the retired             Spouse/Registered Domestic Partner
          member chooses, a non-spouse/non-                When a retiree considers a modification of
          domestic partner beneficiary disclaimer is       retirement option, they need to remember that
          not a qualifying event for a modification of     continuation of health or dental insurance
          option. This simply means the non-               coverage of a new spouse/domestic partner
          spouse/non-domestic partner beneficiary          depends on their being enrolled as a dependent
          relinquished their entitlement to CalPERS        on the retiree’s plan at the time of the retiree’s
          benefits.                                        death and whether the retiree made an election
                                                           of option that provides the new spouse/domestic
If a retiree wishes to change their option and/or          partner with a monthly benefit.
name a new beneficiary for a lifetime option
allowance, the retiree should access the                   If a retiree has CalPERS health insurance, they
document center in my|CalPERS to complete an               must immediately notify CalPERS if they
Application to Modify Option and/or Life                   divorce, terminate a domestic partnership, or
Option Beneficiary (my|CalPERS 1197) form                  suffer the death of a spouse, domestic partner,
which is within the Changing Your Beneficiary              or other dependent. Failure to make a timely
or Monthly Benefit After Retirement                        notification may result in incorrect premium
publication (PUB 98).                                      deductions from the retiree’s monthly allowance.




                                                     105
                                       DEATH OF A RETIREE
If you become aware of the death of a retiree,               The second step is to accumulate documentation.
please contact CalPERS with the name, birth date,            The System will ask for:
Social Security Number, and date of death of the
deceased, as well as the names, relationships, and           1.   A photocopy of the certified death certificate.
addresses of the next of kin. A written or telephone
communication detailing this information is                  2.   The name, address and phone number of the
acceptable for death notification provided an official            person handling the estate if the member’s
of the agency gives it. The form PERS-BSD-738                     estate requires probate. Letters of
SHOULD NOT be submitted for a retiree’s death.                    administration must be submitted by the
                                                                  executor of the estate before benefits can be
INFORMATION FOR FAMILY OF DECEASED                                paid to the estate.
When a CalPERS retiree dies, there are several
important steps a spouse/domestic partner or family          3.   Other documents which are not included in the
member can take to help assure prompt payment of                  member file such as marriage certificates or
any benefits payable by CalPERS.                                  birth certificates.

The first step is to notify CalPERS at 888 CalPERS           The third step is completing the Application for
(or 888-225-7377) or by letter at P.O. Box 1652,             Retired Member/Payee Survivor Benefits
Sacramento, CA, 95812-1652. We will need the                 (my|CalPERS 1191) form that is sent by CalPERS.
following information:                                       This form is used to determine whether any event
                                                             has occurred to invalidate the beneficiary
1.   Name and Social Security number of deceased             designation or to identify persons who might be
     retiree.                                                beneficiaries by law. It is a formal application to
                                                             receive payment of death or survivor benefits
2.   The date of death.                                      determined payable by CalPERS. The person
                                                             completing this form is certifying that he/she is the
3.   Name, address, and telephone number of                  person identified therein. This form should be
     person providing notice of death                        completed in full and returned to CalPERS with the
                                                             other documentation, (death certificate, marriage
4.   Name, address, and telephone number of                  certificate, newspaper clipping, etc.) as quickly as
     surviving spouse/domestic partner, other next of        possible. Enclosed with the Application for Retired
     kin, or the person whom will be settling the            Member/Payee Survivor Benefits (my|CalPERS
     estate.                                                 1191) form will be a Tax Withholding Election for
                                                             Survivor Benefits (my|CalPERS 1190) form so an
5.   If applicable, Social Security number of                election may be made for Federal and State Tax
     surviving spouse or registered domestic partner.        withholding.

6.   Date of birth of surviving spouse or registered         HEALTH INSURANCE
     domestic partner.                                       If the beneficiary or survivor is entitled to a monthly
                                                             benefit and continued coverage under the Public
7.   Date of marriage or registration of domestic            Employees’ Medical and Hospital Care Act, as
     partnership.                                            administered by CalPERS, the coverage will be
                                                             continued automatically. A Health Benefits Plan
8.   Whether surviving spouse/domestic partner is            Enrollment form (HBD-12) is completed by
     able to manage their own financial affairs.             CalPERS and a copy will be sent to the beneficiary
                                                             or survivor.




                                                       106
                                                                     Death of a Retiree


WARRANTS ISSUED AFTER RETIREE’S DEATH
All checks or retirement warrants issued (dated)
after the retiree’s death should be promptly returned
to the System.* If warrants have been mailed to a
bank for direct deposit to the retiree’s account,
CalPERS will contact the bank directly to request
repayment of warrants issued after the retiree’s
death. Any allowance accrued but unpaid prior to the
retiree’s death will be paid to the eligible beneficiary.

*   Unless the CalPERS representative specifically tells the
    surviving spouse/domestic partner the payments do not
    need to be returned.




                                                               107
                 COMPLETING THE TAX WITHHOLDING ELECTION
                           FOR DEATH BENEFITS

MONTHLY AND/OR PRORATED PAYMENT                             OPTION ONE, TEMPORARY ANNUITY
 INCLUDING ANY ALLOWANCE ADJUSTMENTS                           PAYMENTS AND RETIRED DEATH BENEFIT
The retirement allowance is treated as payroll              If the benefit is payable to a spouse (or ex-
wages. Federal income tax will be withheld                  spouse awarded a community property interest),
based on the rate of a married person claiming              death benefits may be non-taxable, partially
three exemptions unless the beneficiary or                  taxable, or fully taxable. Any taxable portion of
survivor elects no withholding, elects a flat               the benefit will be subject to 20 percent federal
amount withheld, or elects a different marital              withholding unless rolled over into an IRA.
status or number of exemptions. If no election is           The non-taxable portion of the distribution is not
submitted and the rate of married with three                eligible for rollover. This portion will be paid with
exemptions is used, no federal tax will be                  no taxes deducted and will be reported to the
withheld if the gross monthly payment is less               tax authorities as a non-taxable benefit. Special
than the IRS minimum level.                                 tax rules apply to eligible rollover distributions.
                                                            The spouse should consult a tax advisor before
If the beneficiary or survivor is a resident of the         making a tax election for these benefits.
State of California, state income tax will also be
withheld based on the rate of a married person              If someone other than the retiree’s spouse or
claiming three exemptions unless they elect no              ex-spouse is a beneficiary of all or a portion of
withholding, elect a flat amount withheld, or               an Option One, Temporary Annuity balance, or
elect a different marital status or number of               Retired Death Benefit, the taxable portion of the
exemptions. For California residents, if no                 benefit will be subject to 20 percent federal
election for state withholding is submitted and             withholding unless rolled over into an “inherited”
the rate of married with three exemptions is                type IRA. The non-taxable portion of the
used, no taxes will be withheld if the gross                distribution is not eligible for rollover. It will be
monthly payment is less than the Franchise Tax              paid with no taxes deducted and will be reported
Board minimum level.                                        to the tax authorities as a non-taxable benefit.
                                                            Special tax rules apply to eligible rollover
                                                            distributions. The non-spouse beneficiary should
                                                            consult a tax advisor before making a tax
                                                            election for these benefits.

                                                            If the beneficiary lives in California, CalPERS
                                                            will automatically withhold 3 percent of the
                                                            taxable portion of the payment for State taxes.
                                                            If they do not wish to have State tax withheld
                                                            from an Option One, Temporary Annuity or
                                                            retired death benefit payment, they must submit
                                                            a Tax Withholding Election for Survivor
                                                            Benefits Including Benefits Eligible for
                                                            Rollover form (my|CalPERS 1192) with the
                                                            appropriate box checked.




                                                      108
               TAX AND INCOME REPORTING INFORMATION
STATEMENT OF BENEFITS PAID AND                       NOTICE OF POSSIBLE PENALTIES
WITHHOLDING                                          If the beneficiary elects not to have federal tax
In January of the year following payment,            and/or California State tax withheld, or not
CalPERS provides each beneficiary with a             enough federal or California State tax withheld,
statement showing the gross amount(s) of             the beneficiary may be responsible for payment
benefits paid during the previous calendar year      of estimated tax. The beneficiary may also incur
and the amount of income tax withheld, if any.       penalties under the estimated tax rules if
Most payments made by CalPERS are reported           withholding and estimated tax payments are not
to the IRS and Franchise Tax Board. Questions        sufficient. IRS Publication 505, Tax
about the taxability of CalPERS benefits should      Withholding and Estimated Tax, provides
be directed to the IRS, the California Franchise     additional information.
Tax Board, or a tax advisor.
                                                     CHANGING A TAX WITHHOLDING ELECTION
TAXPAYER IDENTIFICATION NUMBER                       Once a tax withholding election for a monthly
Section 6109 of the IRS Code requires                benefit is filed, it will remain in effect until
recipients of reportable payments to furnish         another election is filed revoking the original.
Taxpayer Identification Numbers (TINs). The
Social Security Number (or Employer ID               To file another election, the beneficiary would
number, if a trust or organization) must be          need to complete federal form W-4P and state
furnished to CalPERS, even if the beneficiary is     form DE-4P and submit them to CalPERS. This
not required to file a tax return.                   form can be viewed and printed from the Forms
                                                     & Publications Center on the CalPERS Website.




                                               109
                        CALPERS WEB SERVICES AND PUBLICATIONS
                                 TABLE OF CONTENTS

CalPERS Web Services .......................................................................................................................... 112

Ordering Forms & Publications ............................................................................................................. 114

List of CalPERS Publications................................................................................................................. 115



The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may
be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in
effect, not this publication, controls the application of the Public Employees' Retirement Law. It is the
reader's responsibility to independently verify the accuracy of the information contained in this publication
before engaging in a course of action.




                                                                       110
THIS PAGE INTENTIONALLY LEFT BLANK




                                     111
                                 CALPERS WEB SERVICES
MY|CALPERS                                               •   Membership, Payroll & Compensation
                                                             Information
The my|CalPERS system is a self-service,
web-based platform developed for employers,              The Employer Information section also provides
business partners, and members to conduct                information about how to contact CalPERS.
business with CalPERS. my|CalPERS offers
robust services by providing faster and more             CalPERS strives to provide useful information to
reliable service to all CalPERS customers, while         members, employers, and the public in a quick,
ensuring that all business transactions with             easily accessible format through the Website.
CalPERS are quick, easy, and secure.                     CalPERS On-Line supplements the existing
                                                         telephone and in-person services at our
You can find specific information about this             headquarters and regional offices.
system by accessing the my|CalPERS for
Employers pages on the CalPERS Website at:               If you have any comments or suggestions for the
my|CalPERS for Employers                                 Employer Information section of the website,
                                                         please e-mail CalPERS through the online “Ask
On July 30, 2012, CalPERS launched an                    CalPERS” service or call the CalPERS
enhanced version of my|CalPERS for members               Customer Contact Center at 888 CalPERS
to access their real-time account information.           (or 888-225-7377).
This enhancement allows members to see the
information submitted on their behalf by their           CALPERS EMPLOYER BULLETIN
employers, including appointment, payroll, and
service credit information.                              CalPERS Employer Bulletins provide the latest
                                                         news and information regarding Circular Letters,
Therefore, it is critical to stay current with           Board of Administration information, and other
information reported to CalPERS on behalf of             communications, tailored specifically for
your employees. Employer accuracy and                    employers via email. Agency personnel (i.e.,
promptness will alleviate future concerns or             accounting and payroll staff, health benefits
questions members may have with their                    officers, city managers, etc.), administrators, and
CalPERS account and the information provided             other interested parties can all benefit from this
by your agency.                                          service by receiving CalPERS Employer
                                                         Bulletins directly in their email box as soon as
CALPERS ON-LINE                                          news is released. Each CalPERS Employer
                                                         Bulletin comes in a plain text format for easy
CalPERS On-Line provides instant access to               viewing and email retrieval and contains direct
general CalPERS information for members,                 links to the actual employer information on the
employers, and the public.                               CalPERS Website.

CalPERS On-Line at www.calpers.ca.gov                    You can sign up for CalPERS Employer
highlights information about CalPERS retirement          Bulletins on the CalPERS Website at
plans, health benefit programs, and pension              www.calpers.ca.gov.
fund investments. Agencies refer to the
comprehensive “Employer Information” area to             CIRCULAR LETTERS
find the following information:
                                                         Circular Letters are issued to keep you informed
•   Actuarial Information                                of changes in policies and procedures. These
•   CalPERS Retirement Calculation                       letters provide important documentation to
    Information                                          reference when working on CalPERS issues.
•   Circular Letters                                     Circular Letters are mailed to employers, but you
•   Employer Education                                   can also receive an email informing you of the
                                                         release of a new letter by subscribing to
•   Employer Forms & Publications
                                                         CalPERS Employer Bulletins. CalPERS On-
•   Employer Rates
                                                         Line has an archive of letters going back to
•   Health Benefits Information



                                                   112
                                                            CalPERS Web Services


1996. You can search by date or key word to
find the information you need.

SUBSCRIPTIONS SERVICES

CalPERS On-Line Subscriptions are your direct
link to the latest CalPERS news and information
by email. Available subscriptions include:

•   Employer Bulletins
•   CalPERS Agenda Alerts
•   CalPERS News
•   CalPERS News Feeds
•   Press Alerts

Employer Bulletins are the latest employer-
related news and information sent directly to
your email box.

CalPERS Agenda Alerts are a direct link to
Board of Administration Meeting Notices and
Agendas as soon as they are available.

CalPERS News is our newsletter delivered
directly to your email twice a month for important
information on issues and activities impacting
CalPERS programs and services.

CalPERS News Feeds are headlines delivered
instantly to your favorite news reader.

Finally, Press Alerts allow you to receive an
email notification and a direct link for each press
release we issue.




                                                      113
                         ORDERING FORMS & PUBLICATIONS
Forms & publications are available through               Please include your agency name, agency
my|CalPERS (see Forms Transition Guide on                address, agency telephone number (with area
the following page) or by download from the              code) and CalPERS employer code, for shipping
CalPERS Website, by following the instructions           purposes. Also include the form/ publication
below:                                                   number, title, number of units ordered and unit
                                                         of measure for each item ordered, with each
• Access CalPERS On-Line at                              request.
  www.calpers.ca.gov
• Select the “Forms & Publication Center” tab            If you do not receive your order within 15 days of
• Select the Employer, General information,              submitting your request, please contact the
  Members or CalPERS Reports links.                      Public Agency Request Unit at (916) 795-1493.

If you need assistance, please call the                  SIZE OF ORDER
CalPERS Customer Contact Center
888 CalPERS (or 888-225-7377)                            When ordering supplies, please limit your order
(916) 795-3005 (Fax)                                     to a six-month supply. The system keeps a
                                                         record of the supply needs of each agency. If an
ORDERING FORMS & PUBLICATIONS                            excess number of forms or publications are
                                                         ordered, the Supply Section will reduce the
CalPERS forms & publications are available for           order to the maximum allowed for your agency.
download from CalPERS On-Line. They are
also available in hardcopy. To order supplies in
bulk, please use the following method:

E-mail:
Public_Agency_Requests@CalPERS.ca.gov




                                                   114
              LIST OF CALPERS MEMBER PUBLICATIONS

The following member publications may help you convey CalPERS benefit information to your
employees. All publications are available in the Forms & Publications Center on CalPERS On-
Line.

 Planning Your Service Retirement                                              PUB-1

 School Member Benefit Publication                                             PUB-2

 State Miscellaneous & Industrial Member Benefit Publication                   PUB 6

 State Safety Member Benefit Publication                                       PUB 7

 Local Miscellaneous Member Benefit Publication                                PUB-8

 Local Safety Member Benefit Publication                                       PUB-9

 Alternate Retirement Program                                                  PUB-10

 National Guard Member Benefit Publication                                     PUB-11

 A Guide to Your CalPERS Service Credit Purchase Options                       PUB-12

 Temporary Annuity                                                             PUB-13

 Partial Service Retirement                                                    PUB-14

 When You Change Retirement Systems                                            PUB-16

 Retirement Option 4                                                           PUB-18

 Power Of Attorney                                                             PUB-30

 Retired Member Death Benefits                                                 PUB-31

 Employment After Retirement                                                   PUB-33

 A Guide to Completing Your CalPERS Disability Retirement Election             PUB-35

 Reinstatement From Retirement                                                 PUB-37

 A Guide to CalPERS Community Property                                         PUB-38A

 CalPERS Domestic Relations Model Orders                                       PUB-38B

 State Miscellaneous & Industrial Benefit Election Package                     PUB-52

 Changing Your Beneficiary or Monthly Benefit After Retirement                 PUB-98




                                            115
THIS PAGE INTENTIONALLY LEFT BLANK




                                     116
                                      EDUCATION AND OTHER RESOURCES
                                           TABLE OF CONTENTS

CalPERS Education and Events ...................................................................................................................... 119

California Employers’ Retiree Benefit Trust (CERBT) Fund ......................................................................... 121

CalPERS Health Benefits (PEMHCA) ............................................................................................................... 123

CalPERS Long-Term Care ................................................................................................................................ 124

The information provided in this publication is for your convenience and reference as a general guide
only and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS.
While CalPERS tries to include only accurate, timely and complete information in its publications,
summaries, guidelines and other advisory printed materials, sometimes information provided in printed
materials may be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances,
the law then in effect, not this publication, controls the application of the Public Employees' Retirement
Law. It is the reader's responsibility to independently verify the accuracy of the information contained in
this publication before engaging in a course of action.




                                                                         117
THIS PAGE INTENTIONALLY LEFT BLANK




                                     118
                      CALPERS EDUCATION AND EVENTS
The Employer Education and Communication                The Employer's Role in Employee Benefits
Services (EECS) Unit, of the Customer                   Understand your role as an employer in the
Service and Outreach Division, provides                 retirement process. Topics include how to
education and training to employers. The                complete employer certification, how service credit
EECS Unit also provides special request                 is calculated, types of service credit, and how
classes for those State agencies that need              accurate payroll reporting is key to an accurate
additional assistance with determining                  retirement benefit.
CalPERS membership eligibility and
reporting responsibilities.                             CalPERS On-Line Tools and Resources
                                                        Become more familiar with the many CalPERS
Employer Representatives serve as your                  resources available to you. This class teaches you
liaison with CalPERS. They can answer                   about the resources and communication tools
many of your questions or direct you to the             available online to assist you in doing business
appropriate staff at CalPERS who will be                with CalPERS.
able to assist you at the very technical level.
                                                        HOW TO ENROLL
EMPLOYER EDUCATION                                      You can enroll in our employer classes
                                                        through my|CalPERS under the Education
Our employer education classes provide you              tab.
valuable information about CalPERS
membership, accurate reporting, your role in            Disability Retirement Workshops
employee benefits, and available online                 CalPERS Customer Service and Outreach
resources.                                              Division sponsor the Benefit Services
                                                        Division, Disability Section, who conduct
EMPLOYER CLASSES                                        Disability Retirement workshops. The three-
                                                        hour workshop is an interactive process
CalPERS Membership for State Agencies                   intended to benefit the Human Resources
This class provides an overview of CalPERS              personnel, Return-To-Work Coordinators,
membership criteria and related topics for state        Health & Safety Officers, Risk Managers,
agencies. Topics covered in this class include          and other interested employer and
determining membership qualifications,                  employee representatives. These
understanding the Alternate Retirement Program          workshops provide information on all
(ARP), explaining agreements with other public          aspects of disability and industrial disability
retirement systems, criteria for working after          retirement, local safety, reinstatement,
retirement, and additional CalPERS programs.            employment after retirement issues, and
                                                        include Q & A opportunities.
CalPERS Membership for California State
     Universities (CSU)                                 For workshop information, select the
This class provides an overview of CalPERS              following link:
membership criteria and CSU-related topics.             Disability Retirement Workshop Schedule
Topics covered in this class include membership
qualifications, agreements with other public
retirement systems, criteria for working after
retirement, and additional CalPERS programs.

The Importance of Accurately Reporting
    Payroll
Become informed about the importance of
accurately reporting payroll. Learn more about
topics such as what is on a payroll report, pay
rates, special compensation, and earnings.




                                                  119
                                                                       CalPERS Education and Events


CalPERS Annual Educational Forum                        To request an employer-sponsored class,
CalPERS holds a three-day Educational                   call CalPERS Customer Contact Center at
Forum every Fall. The Forum provides                    888 CalPERS (or 888-225-7377).
employers the opportunity to get the most
up-to-date CalPERS information, attend                  RETIREMENT CLASSES FOR MEMBERS
classes, and talk to CalPERS Board                      CalPERS Regional Office staff conduct
members and staff at this event focused                 Retirement Planning Classes throughout
entirely on employer topics. Registration               California to help members prepare for
materials are generally mailed in August.               retirement. We offer five classes based on a
                                                        member’s career life cycle. All five classes
If you have not attended this popular event             are available as in-person classes or online
before and would like to be placed on our               classes.
direct mailing list, please e-mail your request
to calpers_conference@calpers.ca.gov.                   NEW CALPERS MEMBER
                                                        This class is for members who are new to
MEMBER EDUCATION                                        the CalPERS system. Members receive an
                                                        overview of CalPERS programs and
Our member education classes provide your
employees with valuable information about               benefits.
their CalPERS membership benefits,                      CONTINUING CALPERS MEMBER
savings and health programs, and available              This class is for members who are not yet
online resources.                                       ready to retire but want more information
                                                        about CalPERS benefits and programs.
MEMBER CLASSES
                                                        PLANNING YOUR RETIREMENT
WEBINARS                                                This class is for members nearing retirement
CalPERS currently offers the following                  and is designed to help members plan and
webinars:                                               prepare for retirement.
• Planning Your Retirement
   Webinar                                              COMPLETING YOUR RETIREMENT APPLICATION
                                                        This class is for members who are ready to
This free two-hour webinar will provide                 retire. It provides detailed information on the
information about your CalPERS benefits                 step-by-step process of filling out the
and the retirement process.                             retirement application.

•   Your Retirement Application and                     RETIRED CALPERS MEMBER
    Options Webinar                                     This class is for members who have already
                                                        retired. The class provides retirees with
Learn about retirement options and how to               information about CalPERS programs and
complete your service retirement                        provides a refresher on retirement benefits.
application.
                                                        HOW TO ENROLL
EMPLOYER-SPONSORED RETIREMENT                           Advise your employees to log into
     PLANNING CLASSES FOR MEMBERS                       my|CalPERS, select my education, then
CalPERS Regional Office staff conduct                   “Select a Class” to find a date and time.
employer-sponsored retirement planning                  Active member class schedules are
classes at the employer’s facility. The class           regularly provided to the Human Resources
provides customized explanations of the                 Divisions of all CalPERS employers.
employee benefits offered by the employer.
A minimum audience of 20 is recommended                 Schedules for member classes are
to request an employer-sponsored class. If              established twice a year, in April and
the audience will be less than 20, please               October. Enrollment is on a first-come, first-
contact CalPERS.                                        served basis and is free to all members and
                                                        their spouses.




                                                  120
    CALIFORNIA EMPLOYERS’ RETIREE BENEFIT TRUST (CERBT) FUND
The California Employers’ Retiree Benefit Trust              •   As an agency of the State of California,
(CERBT) Fund is an investment vehicle that can                   CalPERS is required to cover all operational
be used by California public employers, including                costs and to retain no profit. We seek to
State agencies to prefund future retiree health                  provide the lowest cost service to all
and Other Post Employment Benefit (OPEB)                         participating agencies, irrespective of size or
costs.                                                           financial resources. For these reasons, the
                                                                 CalPERS OPEB trust is organized to charge
OVERVIEW                                                         a single cost rate to all participating agencies.
                                                                 The cost charged to participating employers
The CERBT Fund is a Section 115 Trust set up                     is based on the average daily balance of
for the purpose of receiving employer                            assets.
contributions that will prefund health and other             •   Dedicated employer service specialists and
post-employment benefit costs for retirees and                   quality customer service.
their beneficiaries. By joining this trust fund, all         •   CalPERS has a seasoned team of investment
California public employers can help finance                     professionals with a proven track record and
future OPED costs in large part from the                         is dedicated to meeting the needs of our
investment earnings provided by CalPERS. Just                    participants and beneficiaries, while
as earnings from invested retirement contributions               minimizing the cost to employers
cover $3 of every $4 spent in pension benefits,
the CERBT intends to generate investment                     INFORMATION FOR NON-PEMHCA AGENCIES
earnings to apply toward OPEB obligations.
                                                             AB 554 (Chapter 318, statutes of 2007) became
WHY PREFUND?                                                 law on January 1, 2008. California public
                                                             employers can join the California Employers'
•    Prefunding enables you to make actuarially              Retiree Benefit Trust (CERBT) to prefund OPEB
     determined periodic contributions to partially          obligations:
     or completely fund your future obligations.             • Local government employers can participate
•    Enhances financial security for retirees.                    in the fund even if they are not currently
•    Earnings on assets reduce employer                           affiliated with CalPERS.
     contributions.                                          • The requirement to contract for health
•    May prevent your net OPEB obligation from                    benefits through CalPERS has been dropped.
     becoming a significant liability on your
     balance sheet.                                          CERBT FUND WORKSHOPS
•    Can contribute to a positive credit rating.
                                                             Register to attend a CERBT Fund Workshop to
BENEFITS OF INVESTING WITH CALPERS                           learn about our trust fund and other services we
                                                             offer to prepare you to measure, report, and
•    80 years’ experience in administering                   prefund OPEB liabilities. The following subjects
     employer-sponsored pension plans for public             are covered in the workshops:
     employees since 1932.
•    CalPERS is the largest public pension system
     in the U.S., managing more than $200 billion
     in assets for more than 3,000 California
     employers and a history of exceptional risk-
     adjusted investment performance.
•    CalPERS has an outstanding record of
     investment performance. Over the past 20
     years, CalPERS has averaged a 10 percent
     rate of return on our investments.
•    Low administrative fees.

                                                       121
                                                                                                     CERBT




Features and Benefits of the CalPERS CERBT                  For more information on CERBT, call the
     Program                                                CalPERS Customer Contact Center at
In this workshop, you will find solutions on how to         888 CalPERS (or 888-225-7377) or visit the
pay for other post-employment benefit (OPEB)                CalPERS Website at
liabilities through the CERBT Fund. All employers           www.calpers.ca.gov/CERBT or email to
are encouraged to attend.                                   CERBT4U@calpers.ca.gov.
Topics include:

•   Investment fiduciary responsibility

•   Accounting compliance

•   World class investment management

•   Program simplicity

•   New asset investment allocation strategies

•   Lowest cost services


CERBT Administration and Education
In this workshop, you will learn about the
administration and processes of the CERBT
Fund. All employers are encouraged to attend.
Topics include:

•   New asset allocation strategies

•   Contributions and disbursements

•   Accruals

•   Alternative Measurement Method (AMM)

•   Valuation renewals

•   End of the year financial reporting




                                                      122
                      CALPERS HEALTH BENEFITS (PEMHCA)
The CalPERS Health Benefits Program is                       HMOS
governed by the Public Employees’ Medical and
Hospital Care Act (PEMHCA) of the California                 CalPERS offers several HMOs, each serving
Public Employees’ Retirement Law. The program                specific geographic areas. Except for out-of-area
was established in 1962 to purchase health care              emergencies, HMO members receive all their
for employees of the State of California, including          care from HMO doctors with a small co-payment
the California State University System (CSU). In             for most services and supplies.
1976, legislation was passed to allow other public
employers, such as cities, counties, and school              PPOS
districts, to join the program. Currently, CalPERS
provides health benefits to over 1.3 million                 CalPERS offers three self-funded PPO plans –
covered lives.                                               PERSCare, PERS Choice and PERS Select.
                                                             PERS Select is available in all California counties
State, CSU, and contracting Public Agencies                  except: Alameda, Marin, Placer, and Solano.
must offer all eligible active and retired employees         Members must reside or work in one of the 54
an opportunity to enroll in a CalPERS health plan            counties in which PERS Select is available to
of their choice. All employers are required by               enroll in the plan. PERSCare and PERS Choice
statute to contribute towards the cost of the health         offer a PPO network through Blue Cross of
plan premium. Premiums and health plan benefits              California, with nationwide affiliations. PERSCare
are approved annually by the CalPERS Board of                and PERS Choice offers out-of-area and
Administration.                                              worldwide coverage.
The CalPERS Health Benefits Program offers a
choice of health plans to provide Basic coverage
                                                             EMPLOYEE ASSOCIATION PLANS
to active employees and Supplement to Medicare
and Managed Medicare coverage for retired                    CalPERS offers employee association health
members. Eligible enrollees can choose between               plans. An enrollee must belong to the specific
a variety of Health Maintenance Organizations                employee association and pay applicable dues to
(HMOs), Preferred Provider Organizations                     enroll in one of these plans.
(PPOs), and employee association plans.
                                                             For further information on the CalPERS Health
                                                             Benefits Program, you may contact the CalPERS
                                                             Customer Contact Center at 888 CalPERS (or
                                                             888-225-7377) or visit the CalPERS Website at
                                                             www.calpers.ca.gov




                                                       123
                           CALPERS LONG TERM CARE
The CalPERS Long-Term Care Program                    Currently, the Long-Term Care Program is
offers long-term care benefits as an option           not accepting new applications. To learn
to members. It is not an employer-paid                more about the CalPERS Long-Term Care
benefit and is entirely funded by member              Program or to find out when the next
premiums and investment of those                      Application Period will begin, select the
premiums. The Program is available to all             following link: Long-Term Care Program or
California public employees, retirees, school         call 1-800-982-1775.
teachers, and their spouses, parents,
parents-in-law and adult siblings.




                                                124
                                         APPENDIX
                                     TABLE OF CONTENTS
These forms are included only as examples for your reference and are not currently available through the
CalPERS Forms & Publications Center. Although these forms were current as of the publication date of
this Guide, CalPERS forms are subject to revision.

Form Name                                                                   Form Number              Page
Appointment Change Notification for the Employer                            my|CalPERS 0850          126

Disclaimer of Benefits                                                      my|CalPERS 0362          127

Employer Acknowledgement Letter                                             BSD-197-W                128

Special Compensation Review                                                 my|CalPERS 0793          129

Application for Retired Member/Payee Survivor Benefits                      my|CalPERS 1191          130

Tax Withholding Election for Survivor Benefits                              my|CalPERS 1190          131

Tax Withholding Election for Survivor Benefits Including                    my|CalPERS 1192          132
Benefits Eligible for Rollover
First Payment Acknowledgement                                               my|CalPERS 0924          133

First Acknowledgement Letter for Employers                                  my|CalPERS 0926          134

Retirement Acknowledgement Letter to Participant                            my|CalPERS 0964          135


The information provided in this publication is for your convenience and reference as a general guide only
and cannot be relied upon as an authoritative source for the law, practices, or policies of CalPERS. While
CalPERS tries to include only accurate, timely and complete information in its publications, summaries,
guidelines and other advisory printed materials, sometimes information provided in printed materials may
be or become inaccurate, untimely, incomplete, unclear or misleading. In all instances, the law then in
effect, not this publication, controls the application of the Public Employees' Retirement Law. It is the
reader's responsibility to independently verify the accuracy of the information contained in this publication
before engaging in a course of action.




                                                    125
126
127
128
129
130
131
132
133
134
135
THIS PAGE INTENTIONALLY LEFT BLANK




                                     136

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:5/8/2013
language:Unknown
pages:138
yaofenjin yaofenjin http://
About