Retiring or Separating from the University

Review and complete the Separation Clearance Form and Instructions.

Work closely with your department or college office to ensure all items are cleared in a timely manner.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted into law on April 7, 1986, and applies to the California State University through the Public Health Service Act. Generally, COBRA permits covered individuals who lose coverage under the plan(s) as a result of certain “qualifying events” to elect to continue their coverage under the plan(s) for a prescribed period of time on a self-pay basis, for up to 18, 29 or 36 months, depending on the qualifying event.

If as an active employee, you have been covered by a health plan, your benefits coverage will likely continue through the month of separation or loss of benefits eligibility and the month following. A COBRA Qualifying Event Election Notice will be sent to your mailing address upon your separation or loss of benefits eligibility, the date your benefits will end will be included. This notice contains information regarding continuing coverage through COBRA, COBRA rates, and the election form you will need to complete should you decide to elect COBRA.

If you have contributions from your pay taken for retirement, you have a couple of options. An employee with CalPERS funds on file is able to leave their funds with CalPERS or request a refund or roll the funds over to another retirement account. Learn more about leaving CalPERS.

For CSU Supplemental Retirement Plan 403(b), review Transactions Flowchart or contact Fidelity NetBenefits for more information.

Changes to Savings Plus Program (SPP) 401(k) and 457 are handled between employees and Savings Plus Program (CalHR). Visit Savings Plus for more information.

Employees who are (or were) in the Part-Time, Seasonal, and Temporary Retirement Program (PST) can find out about a refund or rollover of the funds by visiting Savings Plus.

VACATION BALANCE

Your accrued vacation balance will be paid out in a lump sum with your final pay.  In lieu of a payout, you have the option to request deferral of the lump sum vacation payout to your current 401(k), 457 or 403(b) account(s). You are eligible to transfer up to the maximum contribution limit to each account, minus the amount you have already contributed to the plan.

If your separation date is on or after November 1, you have the option to make the transfer for the current and following tax year, up to the maximum annual contribution limits.

Individuals considering this option should contact the Office of Human Resources prior to their separation. Generally, this option must be exercised at least 30 days prior to separation from the University.

SICK LEAVE BALANCE

Your accrued sick leave balance will not be paid out.  If you are leaving to work for another California State University campus, or other state agency, you may be able to transfer all or part of your accrued sick leave.  If you are retiring, the accrued sick leave balance will be reported to CalPERS for conversion to service credit. Please contact the Office of Human Resources for additional information.

• Attend retirement planning workshops through CalPERS.
• Discuss plans with your financial planner.
• Review options for purchasing additional CalPERS service credits (Sabbatical, Maternity, Military Leaves) by reviewing the CalPERS publication Service Credit Purchase Options (PDF).
• Select retirement date.
• Use the Retirement Estimate Calculator to estimate your monthly pension.

• If 65 or over, contact the Social Security Administration to discuss Medicare options.
• Make an appointment with CalPERS.  Appointments are available by phone, video, or in person at CalPERS Headquarters and Regional Offices located throughout the state.

• Review and complete CalPERS Guide to Completing Retirement Application (PDF). You can also complete an online application at my/CalPERS.
• Contact HR with questions regarding health benefit continuance.
• Review the tax deferral option for lump sum pay of vacation credits.

• Review the Separation Clearance Form.
• Work with your department to complete the Separation Clearance process.
• Make sure you update your personal information in Cal Employee Connect to ensure you don't miss out on any communication or access to any tax documentation. Visit the FAQ section of the Cal Employee Connect page on how to create an account or/and update your information.

The earliest possible retirement date is the day following an employee’s last day on pay status. Retirement may be effective any day of the week; if an employee separates on Friday, retirement may be effective on Saturday.

If an academic year employee receives their paychecks spread out over twelve months and retires immediately following the end of the academic year (6/1), instead of when their paychecks normally run out (9/1), they will start collecting their retirement pay earlier and will receive the pay earned during the academic year as a settlement check sometime in June.

Employees should determine which date is more advantageous. For some, it might be better to remain on payroll through the summer months due to a various factors such as additional service credit or attaining a birthday quarter. Other employees will benefit more from collecting retirement pay during the summer.

If an employee is planning to retire at the end of the year or at the beginning of the next year, they should consider the cost of living (COLA) adjustment. The COLA is applied to the retirement allowance on May 1 of the second calendar year following retirement. For example:

 

CSU post-retirement medical and dental benefits are available to employees (and their eligible dependents) who retire within 120 days of separation from employment. If you retire less than 30 days after your separation, your medical coverage will continue automatically. Contact the HR office if retiring between 30 and 120 days of separation.

You will be eligible for a CalPERS-administered health plan as a retiree if you meet all the following criteria:

• You are eligible for health coverage upon separation of employment.
• You retire from an employer (and bargaining group, if applicable) that contracts for health benefits through CalPERS.
• You receive a monthly CalPERS retirement allowance.
• You retire within 120 days of the date of your separation from employment.

The cost of medical coverage will depend on several factors. If you are under the age of 65, you will continue on the same plan that you had as an active employee and you will pay the same premium. If you are over 65 or your spouse is over 65, you will work with the Social Security Administration for enrollment in Medicare and with CalPERS to enroll in a Medicare supplement plan.

PLEASE NOTE: All employees hired by the CSU and who become new CalPERS members on or after July 1, 2018, are eligible for the CalPERS Retiree Medical Benefits and CSU Retiree Dental Benefits after a 10-year vesting period. Faculty (Unit 3) employees hired by the CSU and who become members of CalPERS on or after July 1, 2017, must have 10 years of service credit with CalPERS to be eligible to enroll.

If you are enrolled in the Enhanced DeltaCare HMO or Delta Dental plans, your coverage as a retiree will change to the Basic level. Currently, the CSU pays the full cost of the Basic level dental coverage for eligible retirees and their eligible dependents. You also have the option to continue with the Enhanced dental coverage for a small monthly cost. To compare the two plans, please review the Dental Plan Comparison (PDF) document.

Retirees may enroll in the CSU Retiree Voluntary Vision Plan within 60 days of retirement. The monthly premium is fully paid by the retiree and is deducted from their paycheck (warrant) issued by CalPERS. You may also choose to enroll in the VSP Premier plan, which allows for additional benefits, however the premium costs are slightly higher than the VSP Basic plan. To compare the two plans, please review the VSP Page for CSU retirees.

Information on the changes to your dental plan and enrolling in the vision plan will be sent to you by the Office of Human Resources shortly after your retirement date.

Your accrued vacation balance will be paid out in a lump sum with your final pay.  In lieu of a payout, you have the option to request deferral of the lump sum vacation payout to your current 401(k), 457 or 403(b) account(s). You are eligible to transfer up to the maximum contribution limit to each account, minus the amount you have already contributed to the plan.

If your separation date is on or after November 1, you have the option to make the transfer for the current and following tax year, up to the maximum annual contribution limits.

Individuals considering this option should contact HR prior to separation. Generally, this option must be exercised at least 30 days prior to separation from the University.

If you are Medicare-eligible, receiving retirement health benefits, and not enrolled in a CalPERS Medicare health benefits plan, you will need to enroll in a CalPERS Medicare health benefits plan to continue your health coverage through the CalPERS Health Program.

Continuing CalPERS Health Coverage After Age 65

A few months before you turn 65, CalPERS will send you notifications of the requirements to continue your health coverage. The notifications request information about your eligibility or ineligibility to enroll in Medicare.  You must meet these requirements to continue your CalPERS health coverage:

• Apply for Medicare by contacting the Social Security Administration (SSA). If you qualify for Medicare Part A at no cost because either you or your qualified spouse worked for 40 quarters in Social Security/Medicare-covered employment, you must also enroll in Medicare Part B as soon as you're first eligible.
• When you enroll in Medicare Part A and Part B two to three months prior to your 65th birth month, CalPERS will work with the CMS to obtain your Medicare information and automatically transfer you from a CalPERS Basic (non-Medicare) health plan to a CalPERS Medicare health plan. If CalPERS is unable to obtain your Medicare information from CMS, you'll need to complete and submit the Certification of Medicare Status (PDF) form to CalPERS with copies of supporting documentation for manual processing.
• If you're ineligible for Medicare Part A at no cost, or if you're deferring enrollment in Medicare Part B due to current working status and covered under an employer group health plan, you must complete the Ineligibility of Medicare Certification (PDF) form.
• Submit the Ineligibility of Medicare Certification form to CalPERS with copies of supporting documentation prior to your 65th birth month to prevent cancellation of your CalPERS health coverage. You may remain in a Basic (non-Medicare) health plan if you're ineligible for Medicare.
• To view what plans are available to you, log into your myCalPERS account. Transitioning from a Basic (non-Medicare) health plan into a Medicare health plan is anopportunity to change health plans. Not all Basic (non-Medicare) health plans have a corresponding Medicare health plan available. You may request to change health plans when you provide your Medicare eligibility information. If you don't choose a Medicare health plan, CalPERS will automatically enroll you in a Medicare health plan.

 

Medicare Health Plan Availability

CalPERS offers the following Medicare health plans:

Kaiser Permanente Senior Advantage HMO Plan
(800-464-4000)

PERS Gold and PERS Platinum Medicare Supplement PPO Plans

Includes enrollment in OptumRx Medicare Part D prescription drug plan
(877) 737-7776

Anthem Medicare Preferred PPO Plan
(855) 251-8825

UnitedHealthcare (UHC) Group Medicare Advantage PPO Plan
(888-867-5581)

Faculty members who are interested in the FERP program should contact the Office of Provost and Vice President Academic Affairs.

Service retirement must begin concurrently with, or prior to, the beginning of the campus academic year in which FERP participation will begin. The faculty member must initiate the service retirement process no more than 90 days before retirement date.