Full-time appointments that exceed six months and half-time appointments averaging
20 hours per week for one year or longer are automatically enrolled in the California
Public Employees Retirement System (CalPERS). CSU employees who are members of the
CalPERS system are in the "State Miscellaneous, First Tier" plan, or one of the Public
Safety plans, depending on classification.
Employees excluded from CalPERS membership are covered by the CSU Part Time Retirement Plan.
On January 1, 2013, a Pension Reform legislation went into effect. Please review
the retirement formula chart to see the previous and new retirement formulas that are applicable to CSU employees.
CalPERS Retirement Contributions
- Employees contribute a percentage of gross monthly income minus the applicable exclusion
amount (Gross Income - exclusion amount x applicable %).
- The contribution is not subject to federal and state taxes.
- The CSU also contributes to CalPERs.
CalPERS Retirement Benefits
- The plan is a defined benefit plan with retirement benefits calculated based on age
at retirement, years of service and compensation.
- Plan vesting is at five years of PERS credited service.
- With the exception of members in the 2% at 62 formula (minimum retirement age is fifty-two
(52), 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.
- Any unused sick leave is converted to additional service credit if the employee retires
within 120 days of separation from employment. Eight hours of sick leave equals one
day (.004 of a year of service). It takes 250 days of sick leave to receive one year
of service credit (.004 x 250 = 1 year).
- CSU retiree medical, dental and vision benefits are available to employees (and their
eligible dependents) who retire within 120 days from the date of separation from employment.
Applying for CalPERS Service Retirement
Employees should begin their retirement planning at least one year before their retirement
date. However, they should not submit their application to CalPERS sooner than 90
days prior to their retirement date. Completed applications should be returned to
the CalPERS Regional Office closest to the employee.
CalPERS Power of Attorney
The CalPERS Special Power of Attorney allows the member to designate a representative
or agent to conduct their retirement affairs if they are unable to act on their own
As a member of CalPERS, employees also participate in Social Security.
- Social Security and Medicare taxes are withheld from your paycheck.
- 2015 withholding rates are 6.2 percent for Social Security and 1.45 percent for Medicare.
- Social Security maximum taxable earnings is $118,500, effective January 1, 2016.
- There is no limit for Medicare.
- Beginning in 2013, an additional Medicare tax of 0.9% will be applied when an employee's
wages and compensation exceed $200,000.
Social Security Resources: Social Security Administration (SSA) website