Tips and Hints for Retiring:
4/2/2009
CalPERS personnel are very helpful, friendly and will answer your questions.
Offices in Glendale Regional Office: Glendale Plaza, 655 North Central Avenue, Suite 1400, Glendale, CA 91203, Fax (818) 662-4304, Counties Served: Los Angeles, Santa Barbara, Ventura. Orange Regional Office, 500 North State College Blvd., Suite 750, Orange, CA 92868, Fax (714) 939-4701, County Served: Orange. San Bernardino Regional Office: 650 East Hospitality Lane, Suite 330, San Bernardino, CA 92408, Fax (909) 806-4820, Counties Served: Inyo, Riverside, San Bernardino. San Diego Regional Office: 7676 Hazard Center Drive, Suite 350, San Diego, CA 92108, Fax (619) 220-7201, Counties Served: Imperial, San Diego.
Without an appointment and got helpful, friendly and immediate (within 15 minutes) service. It's best if you make an appointment though, since as a walk-in you have a time limit on how much time you can have with a consultant. With an appointment, you get more time. But even without an appointment, we got our questions answered and the helpful person literally walked us through filling out the paperwork.
Acquaint yourself with the CalPERS website; you should, even if you aren't planning retirement any time soon. It's always good to know.
Service credit purchases recommendation, if you intend on retiring from CSU, purchase service credit now. The higher your salary, the more expensive the purchase becomes. There are ways to trade other service (such as other employment, military service, peace corps service) but I think most folks purchase what is, essentially, "air time". You can buy up to 5 years worth and it will make your retirement check look as though you had worked here 5 additional years. It can pay for itself pretty quickly... You can do outright purchases, you can also rollover (without tax penalties) from 403Bs.
It's a pain in the you-know-what re: paperwork, but given the volatility of most 403Bs in this economy, it may be worth it for you. That is a discussion to have with a financial consultant or accountant. This is a one time deal...you can't buy a year now and and two years (or four years) later. You also must initiate this process before you retire.
Long Beach campus retirement workshops...well worth investing a couple of hours http://daf.csulb.edu/employees/retirement/workshop.html
Following this Tips and Hints is a document prepared by the CSULB campus human resources department. Cannot find it on their web site. There's some good information here. Note the date it may change so follow up for new information.
What and how do I get Emeriti status? Why do I want this?
Faculty retiring from CSULB (with 10 or more years of full time equivalent service) are automatically granted emeriti status. I verified this via the 2006 edition of the Faculty Handbook (apparently the last edition published). www.csulb.edu/divisions/aa/personnel/documents/2006FacultyHandbook8-11-06.pdf
Emeriti status allows you to keep your campus email account. See the Emeritius Faculty Association for more options: http://www.csulb.edu/divisions/aa/erfa/
CALIFORNIA STATE UNIVERSITY, LONG BEACH
Benefits Services
IMPORTANT INFORMATION ABOUT
RETIRING FROM THE CSU SYSTEM
Dated 12/2007.
This document provides information you need to know about retirement from the California State University (CSU), a CalPERS agency. It is intended to be a supplement to CalPERS’ publications regarding retirement. Should you have additional questions, you may wish to contact the CalPERS Regional Office at (888) 225-7377 OR (888) CALPERS, or access the CalPERS website at www.calpers.ca.gov.
The CSU is governed by Public Employees’ Retirement Law (PERL). The Retirement Law is complex and subject to change. If there is a conflict between the law and the information in this document, any decisions will be based on the law and not this document. The statements made in this Retirement outline are general and are intended to guide you in your retirement planning decisions. Please refer to the CalPERS web links included throughout this document for up-to- date information.
When contemplating retirement, here are some recommended actions, and useful information to consider:
?? Register for and attend a CalPERS workshop, offered throughout the year. The dates and locations of the workshops can be obtained by accessing the CalPERS web site: https://www.calpers.ca.gov/index.jsp?bc=/member/ces/home.xml, or by calling (888) 225-7377.
?? Obtain the CalPERS publication, “Your Benefits Your Future – State Miscellaneous and Industrial Benefits” (PERS-PUB-6) available in Benefits Services, BH-258, on-line at the CalPERS website at www.calpers.ca.gov, or by calling CalPERS at (888) 225-7377 in advance of your retirement date.
?? Obtain the CalPERS Service Retirement Election Application Booklet (PERS-PUB-43), available in Benefits Services, BH-258, on-line at the CalPERS website at www.calpers.ca.gov, or by calling CalPERS at (888) 225-7377 in advance of your retirement date. When you have chosen your retirement date and completed the Service Retirement Election Application found in the booklet, Benefits Services will complete Section 7, reporting sick leave balances to be converted to service credit. Upon completion of this process, the application will be returned to you. You will then be responsible for submitting the application and appropriate required documents to CalPERS. The Service Retirement Election Application must be submitted to CalPERS no more than 90 days before your retirement date.
?? Review your Annual Member Statements for accuracy. Each year CalPERS sends you an Annual Member Statement that reports your CalPERS years of service and member contributions. It is important to review this statement when you receive it. Your service credit amount is an important component in determining your future retirement benefits.
?? Review Service Credit Purchase Options. There may be ways for you to increase your CalPERS service credit. Service credit is one of the factor CalPERS uses to calculate your retirement benefit. CalPERS has online tools you can use to estimate the cost to purchase additional service credit. For additional information refer to CalPERS Publication 12 “A Guide to Your CalPERS Service Credit Purchase Options.”
?? Reciprocity. CalPERS has reciprocity with certain agencies that may provide additional retirement benefits. Contact CalPERS if you are a member of any other public employee retirement system.
?? Request an official CalPERS retirement estimate using the “Retirement Allowance Estimate Request” form provided in the CalPERS Service Retirement Election Application booklet. You may obtain an estimate on your own by accessing the CalPERS Retirement Planning Calculator, which is available on the CalPERS website (www.calpers.ca.gov).
?? Lump Sum and Settlement Pay: Any lump sum (unused vacation credits, personal holiday, or CTO) or settlement pay (residual pay for 10/12, 11/12, or AY employees) will be paid shortly after your separation date. When settlement pay issues as one check instead of in monthly increments, federal and state taxes will be calculated on that amount as though it were one month’s pay. Your lump sum/settlement pay will be handled the same as your other paychecks, e.g., if you have signed up for Direct Deposit at least 45 days prior to your separation, your lump sum/settlement pay will be direct deposited. Questions regarding distribution of your final check should directed to the Payroll Department.
?? Tax Sheltered Annuity Contributions From Settlement Pay: Employees who are making contributions to a tax sheltered annuity (403{b}) for the pay period prior to retirement, may opt to have their contribution made from each month’s worth of settlement pay. As a result, settlement pay would issue shortly after separation as separate checks that would be taxed individually. If you are interested in this option, you must contact the Payroll Department at least 30 days prior to your retirement date.
?? Contact your Tax Sheltered Annuity (TSA)/403(b) Company, or the Department of Personnel Administration (Savings Plus Program) if you have a 457 deferred compensation and/or 401(k) plan to discuss your fund distribution upon retirement.
?? Accumulated Sick Leave Credit: Accumulated sick leave converts to CalPERS service credit. 2,000 hours of sick leave equals one year of service credit. (Service credit is prorated for sick leave balances less than 2,000 hours.) There is no maximum to how much sick leave that can be converted to service credit.
?? Notifying Your Department of Retirement: It is suggested that you discuss your retirement decision and settlement of accrued vacation, or other accruals with your department. Benefits Services will NOT advise your department of your retirement decision.
?? University Clearance Procedure. Please contact Payroll Services to obtain the required University Clearance Form, which is required prior to separation.
?? Continuing Health and Dental Insurance in Retirement: In order to be eligible for health and dental coverage in retirement, you must be eligible on the date you separate from the university, and your retirement effective date must be within 120 days of separation from employment. If you miss the 120 day deadline, you forfeit your right to the lifetime medical and dental benefits.
If your separation date and retirement date are within 30 days of each other and you are enrolled in health and dental benefits at the time of retirement, your coverage will continue into retirement without a break. If your separation date and retirement date are between 30 and 120 days of each other, your coverage will not automatically continue. You may re-enroll by contacting CalPERS within 60 days of your retirement date, or wait until the next Open Enrollment period (usually September/October of each year). There may be a short period of time after the retirement date when coverage will not “appear” in the system because CalPERS has processed your separation but has not yet entered your retirement information. However, there will be no lapse in coverage and your benefits will be reinstated retroactively.
As your retirement date nears, Benefits Services will submit enrollment forms to CalPERS in order to enroll you in retiree dental benefits.
?? Health Care Premium Costs. The State currently makes the same contribution toward health plan coverage for retirees as for active employees. Depending on your medical plan, you may be responsible for a portion of the monthly premium. This amount, if any, will be deducted from your retirement check.
?? Dental Coverage After Retirement. CSU contributions for dental coverage continue into retirement for retirees and their eligible dependents at no cost to the retiree. Upon retirement, the dental coverage is reduced to the “basic” level (except for faculty who participate in the FERP program). As an added option, you may continue your enhanced dental coverage for a period of 18 months under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA).
?? Vision Benefits After Retirement: University contributions for vision coverage end upon retirement (except for FERP participants). You have the option of continuing vision coverage for up to 18 months under the the Consolidated Omnibus Budget Reconciliation Act (COBRA). Another option is to join the CSU Group Vision Plan. Information is provided.
?? Making Changes To Your Health Plan After Retirement. Retirees may change health and/or dental plans within 30 days of their retirement, when they move, or during annual open enrollment periods. Once retired, changes to plan coverage, and any questions regarding health or dental care should be directed to CalPERS at (888) 225-7377.
?? Medicare Enrollment: As required by law, once you are retired and age 65, you must enroll in Medicare Parts A (hospital) and B (medical), if eligible, in order to maintain your eligibility for health benefits through CalPERS. Enrollment in Medicare is not automatic. The “Initial Medicare Enrollment Period” starts 3 months before you turn age 65 and lasts for 7 months. Except in certain cases, if you do not enroll in Medicare Part B during your Initial Enrollment Period, you will have to wait until the next “General Enrollment Period” to enroll. General Enrollment Periods are between January 1 and March 31 each year. If you sign up for Medicare Part B during a General Enrollment Period, your coverage starts on July 1 of that year. Your Medicare Part B premium may go up 10 percent for each 12-month period that you could have had Medicare Part B, but did not take it. Contact the Social Security Administration at ((800) 772-1213 for information on social security benefits and your Medicare eligibility.
Once you become eligible for Medicare, State law prohibits continued enrolled in the “basic” health plan. You must enroll in a supplement to Medicare or Managed Medicare Plan of the CalPERS-sponsored health plan in which you are enrolled. Contact the CalPERS Health Benefits Division or CalPERS Regional Office after receiving your federal Medicare card to determine your eligibility and to coordinate the effective date of your Medicare coverage. You must contact CalPERS to make notification of your enrollment in Medicare. CalPERS will need a copy of your Medicare identification card.
Because CalPERS prescription drug coverage is as good as, or better than what will be available under Medicare Part D Prescription Drug Plan, CalPERS health program members should not enroll in a non-CalPERS prescription drug plan. HICAP (Health Insurance Counseling and Advocacy Program), a program of PASSAGES Adult Resource Center, provides assistance with Medicare and coordination with other health insurance. HICAP can be reached at (530) 898-5923.
?? CalPERS Retirement Checks: Your CalPERS retirement checks are issued at the end of every month. For example, the payment issued on or about the first of June is the May allowance. For tax reasons, the December retirement check is always dated the first of the new year. Retirement checks are subject to federal and state taxes, which are withheld according to tax tables. Retirement checks are mailed to the address provided by the retiree. If the retiree has submitted the direct deposit authorization with the retirement application, checks will be direct deposited beginning with the third retirement check. Each January, CalPERS will send a 1099R form containing information about your CalPERS income for the previous calendar year. This replaces the W-2 you received from when you were an active member.
?? Employment After Retirement: There are some basic rules you need to know about working after retirement so you do not jeopardize your CalPERS retirement benefits. After retirement, you are limited to the hours you work in a fiscal year if you return to work for a CalPERS agency as a Rehired Annuitant. Academic Year employees are allowed to teach 50% of their Academic teaching load prior to the year retired. Staff employees are limited to working 960 hours/120 full-time days in a fiscal year. Note: All CSU campuses are CalPERS-covered employers. Limitations to CalPERS covered employment are listed in the CalPERS booklet “Employment After Retirement” (PERS-PUB-33), available on the CalPERS web site. Specific questions should be directed to CalPERS at (888) 225-7377.
?? Cost of Living Adjustment (COLA): The Retirement Law provides for the payment of an annual COLA to be paid each May beginning the second year after retirement begins (if the retirement date is 12/31/2007, the first COLA increase will be 5/1/2009; with a retirement date of 1/1/2008, the first COLA increase will be 5/1/2010). The COLA increase cannot be greater than the actual national rate of inflation. Currently, CSU retiree allowances are limited to a maximum increase of 2% (compounded) annually.
?? Continuing Employer Paid Life Insurance or Voluntary Life Insurance After Retirement: Upon separation (retirement), coverage under the Employer-Paid Group Life Insurance Plan, and Voluntary Life Insurance (provided through The Standard Life Insurance Company) terminates. You may convert an employer-paid life insurance plan, or voluntary life insurance plan, to an individual policy within 30 days of separation. In order to exercise this option, you must contact The Standard Life Insurance for information at (800) 378-5745.
?? Continuing Voluntary Deductions From Retirement Checks: If you are enrolled in the CalPERS Long-Term Care Program and have premiums deducted from your paycheck, you will need to call the program’s Customer Service Center at (800) 338-2244 before you retire to find out what steps are needed to continue your premium deductions after retirement. Many types of payments can be deducted from your monthly retirement check, such as car payments, retiree association fees, charitable contributions, savings account deposits, etc. To make sure any current deductions continue after you retire, or to add new deductions, you must contact the provider and complete a direct authorization deduction request, to be forwarded to CalPERS.
Contact Numbers and web sites:
? CalPERS (888) 225-7377 or (888) CALPERS
? CalPERS Publications – For individual publications, visit the CalPERS on-line “Forms and Publications Center” available at www.calpers.ca.gov.
? CalPERS Long Term Care Program (800) 982-1775 www.calpers.ca.gov/longtermcare (Customer Service Center)
? Social Security Administration (800) 772-1213 www.ssa.gov
? Standard Life Insurance (800) 378-5745
? Sanders and Associates (800) 537-2476
I have reviewed all of the items listed above on pages 1–4 of this document.
Employee Name:_________________________________ Date __________________
Benefits Representative: ___________________________Date: _________________
