Retirement

CalPERS Enrollment Eligibility

  • Full-time appointments that exceed six months and half-time appointments averaging 20 hours per week for one year or longer require membership in the California Public Employees Retirement System (CalPERS).

CalPERS Information

PST Program for part-time faculty not enrolled in CalPERS

FERP vs PRTB

Sample Retirement Letters

Sample Retirement Letter (Word format)—contains sample language to use in composing a personal letter to the President regarding your retirement.

Sample FERP Letter (Word format)—contains suggested language to use in composing a letter regarding entry into the Faculty Early Retirement Program (FERP).

Sample Letter Rescinding Earlier Letter Asking Entry into FERP (Word format)—use as a guide in composing a letter to the President rescinding an earlier letter asking for entry into FERP.

Employment after Retirement with a CalPERS Covered Employer - Guidelines for Rehired Annuitants

CalPERS retirement is a tax-qualified pension plan under Section 401(a) of the Internal Revenue Code (IRC) and, as such, must comply with the requirements of this section to maintain its tax-exempt status.  Government Code (GC) provisions permit former CSU academic and staff/management employees who retire and receive retirement benefits from CalPERS to accept limited CSU employment without jeopardizing retirement benefits or requiring reinstatement from retirement. 

Effective January 1, 2013, CSU employees are required to wait 180 days from his/her retirement date before returning to work as a rehired annuitant unless the appointment is necessary to fill a critically needed position and has been approved/certified by the Board of Trustees or its authorized designee.  

Faculty Early Retirement Program (FERP) and Public Safety employees (rehired in a Public Safety position) are exempted from the 180-day sit out period.  Note:  Retirees employed as rehired annuitants prior to 2013 are also exempted from the 180-day sit out period.  (AB-340)

 Academic Rehired Annuitants

  • Purpose for Rehire and Work Limitations:  The employment in an academic assignment may not exceed 960 hours or 50 percent of the hours the member was employed during the last fiscal year prior to retirement, whichever is less(GC 21227); this includes FERP appointments.  960 hours is the equivalent of 120 academic workdays.  It is the retiree’s responsibility to monitor hours of work.
     
  • FERP Appointments - Review Article 29 of the Unit 3 Collective Bargaining Agreement. 

General Guidelines

Penalties:  If CalPERS determines the employment of a rehired annuitant is in violation of GC restrictions, the rehired annuitant and employer will be subject to penalties, including reinstatement retroactive to when the employment began, reimbursement for all retirement allowances received during the unlawful employment, and contribution toward administrative expenses to the extent the member and employer are determined to be at fault (GC 21220(b), 21202).  

Unemployment Benefits A retiree who collects unemployment benefits based on separation from a retired annuitant position (faculty or staff) must be excluded from hire with the same employer for a 12 month period (GC 21229). 

Leave BenefitsRehired Annuitants are not eligible to accrue or use sick leave (FERP participants are an exception), nor can they earn vacation or other leave benefits, or be entitled to holiday pay, including personal holiday.  

Tax Sheltered Annuity [403(b)] DeductionsRehired Annuitants are eligible to contribute to the 403(b) program.  

Tax Deductions:  Post retirement CSU compensation is subject to federal, state and Medicare taxation, but is excluded from Social Security taxation.