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Public Employees' Retirement System

While reading this information, please remember that we are governed by the California Public Employees’ Retirement Law. This information is general. Please refer to the CalPERS web links included throughout this document for up to date information.

The California Public Employees’ Retirement System (CalPERS) http://www.calpers.com/ is the State of California retirement system in which CSU, Fullerton participates. Coordinated with Federal Social Security, employee are automatically enrolled if appointed:

  • full-time for a period that exceeds six months
  • half-time averaging 20 hours per week for one year or longer
  • half-time (7.5 units) or more for 3 consecutive semesters

Cal PERS is a defined benefit plan and is coordinated with Social Security. CSU, Fullerton employees who are members of the CalPERS system are in the "State Miscellaneous, First Tier" plan. Employees who retire from PERS are eligible for benefits from the retirement system as well as Social Security benefits. CalPERS provides each active member with a tax-free $5,000 group term life insurance policy.

CalPERS Retirement Contributions

  • Employees contribute 5 percent of gross monthly income in excess of $513.00 (Gross Income - $513 x 5%).
  • The contribution is not subject to federal and state taxes.
  • The CSU also contributes to CalPERS. This percentage can change July 1 of each fiscal year based on economic factors. Changes in the employer contribution rate do not impact employees’ future retirement benefits in any way.
  • Members of CalPERS contribute 6.20% to the Social Security tax and 1.45% to the Medicare tax. Information regarding Social Security can be found by accessing the Social Security Web site at http://www.ssa.gov/SSA_Home.html

PEACE OFFICER/FIREFIGHTER Category- 3% at Age 50

Effective July 1, 1996, the CSU contributes the full share of all Public Safety Officers' employee contributions. Those appointed as Management Personnel Plan (MPP) Public Safety Directors and Lieutenants will contribute 8% in excess of $238.00 of their monthly salary. Public Safety personnel hired on or after April 1, 1986 will contribute 1.45% of their gross salary towards the Medicare tax. Members not covered under Social Security while in state service will be covered under the 1959 Survivor Benefit. There is a $2.00 payroll deduction for this coverage.

CalPERS Retirement Benefits

  • The plan is a defined benefit plan with retirement benefits calculated based on age at retirement, years of service and compensation. Plan vesting is at five years of PERS credited service.
  • Employees are eligible to retire and receive a monthly pension benefit when they are at least age 50 and have a minimum of five years of CalPERS-credited service.
  • The benefit formula is called "2% at Age 55." Employees can estimate their retirement benefit by using the CalPERS Table or using the CalPERS calculator at www.calpers.ca.gov. Click on For Members, Retirement Benefits, retirement Planning and Retirement Planning Calculator.
    1. To determine years of service, employees should refer to their CalPERS member statement and add any planned future service.
    2. To determine age, use age at expected date of retirement.
    3. The percentage derived from the table is multiplied by "final compensation", which is the average monthly pay for the last consecutive 12 months of employment, or another consecutive 12-month period when average monthly pay was higher.
  • Any unused sick leave is converted to additional service credit if the employee retires within 120 days of separation from employment. Eight hours of sick leave equals one day (.004 of a year of service). It takes 250 days of sick leave to receive one year of service credit (.004 x 250 = 1 year).

Health, Dental, Vision and Employer Paid Life Insurance

  • CSU retiree medical and dental benefits are available to employees (and their eligible dependents) who retire within 120 days from the date of separation from employment.
  • Vision insurance does not continue into retirement. Employees are offered COBRA. Additionally, vision coverage is available in Part B, Medicare.
  • Employees may convert the employer-paid life insurance plan and pay for premiums once retired.

Applying for CalPERS Service Retirement

Employees should begin their retirement planning at least one year before their retirement date. Employees should contact Human Resources to discuss retirement. Employees should not submit their application to CalPERS no sooner than 90 days prior to their retirement date. Completed applications should be returned to the CalPERS Regional Office closest to the employee or mailed the CalPERS in Sacramento. A copy of the 1st page of the retirement application should be submitted to Human Resources at College Park, Suite 700.

Retirement Workshops on Campus Conducted by CalPERS

  • Every quarter CalPERS offers workshops on campus.
  • The ETD web page has information regarding the dates and times of the workshops. (http://etd.fullerton.edu/)

Other Retirement Resources

For additional information, contact Human Resources at ext 2425.