Retirement Plans

Generally, employees at Cal Poly are required to be enrolled in one of two retirement plans:

Membership

Membership with CalPERS is based on full-time employment for more than six months or half-time employment for more than one year. Lecturers become members at the beginning of their fourth consecutive quarter at half-time or more.

Membership is mandatory for qualifying employees. Employees excluded from CalPERS membership are covered by the Part-Time, Seasonal and Temporary Retirement Plan ("PST") administered through Savings Plus.

CalPERS members pay into Social Security. Those enrolled in PST do not pay into Social Security.

CalPERS Retirement Pension

You can track your retirement funds and get pension estimates by Creating a CalPERS Account.

CalPERS is a defined benefit retirement plan. It provides benefits based on members' years of service, age, and final (or highest) compensation. In addition, benefits are provided for disability, death, and to survivors or beneficiaries of eligible members.

Cal Poly employees who are CalPERS members become fully vested for a retirement pension after five years of credited CalPERS service. Vesting means you are entitled to a pension once you reach retirement age (varies). Timelines and information about retiring from CalPERS can be found by downloading Cal Poly's Retirement Proces.

CalPERS Retirement Health Benefits

If you are vested and retire from a CSU (in a benefit eligible position), you are eligible to continue your Health, Dental and Vision benefits into retirement.

Staff and Faculty hired prior to 07/01/2017 are eligible for Health/Dental with five years of CALPERS service or reciprocity.

Faculty (only) hired 07/01/2017 or after with no prior CALPERS or prior CSU service, are eligible to continue Health/Dental with ten years CalPERS service.

In order to qualify for health/dental in retirement, you must retire within 120 days of separatation from the CSU. Retirees pay the same contribution as active CSU employees. The vision benefit can be continued at the retiree's expense. In addition, benefits are provided for disability, death, and to survivors or beneficiaries of eligible members.
New CalPERS Webinar Available: "Health Benefits into Retirement"

CalPERS Retirement Plans

State Misc Tier 1: All except State Public Safety

Employees Hire Date Formula Earliest
Ret Age
Pension
Based on
Employee
Contribution
Current
Employer
Contribution
CSU Eligible Employees
Except State Public
Safety
Prior to
1/15/11
2% at age 55
(08)
50 Highest 12
month avg salary
5% of gross pay over a $513
exclusion allowance
26.728% of
gross pay
On or after
1/15/11
2% at age 60
(2Z)
50 Highest 36
month avg salary
5% of gross pay over a $513
exclusion allowance
26.728% of
gross pay
On or after
1/1/13 as
"New" Member
2% at age 62
(2N)
52 Highest 36
month avg salary
6.50%* of gross
pay
26.728% of
gross pay

State Safety Peace Officer

Employees Hire Date Formula Earliest
Ret Age
Pension
Based on
Employee
Contribution
Current
Employer
Contribution
CSU Eligible Employees
Public Safety
Unit 8
Prior to
7/1/11
3% at age 50 50 Highest 12
month avg salary
8% of gross pay over a $238
exclusion allowance
41.923% of
gross pay
On or after
7/1/11
2.5% at age 55 50 Highest 36
month avg salary
8% of gross pay over a $238
exclusion allowance
41.923% of
gross pay
On or after
1/1/13 as
"New" Member
2.5% at age 57 50 Highest 36
month avg salary
11%* of gross
pay
41.923% of
gross pay

State Safety Peace Officer: Management

Employees Hire Date Formula Earliest
Ret Age
Pension
Based on
Employee
Contribution
Current
Employer
Contribution
CSU Eligible Employees
Public Safety
MPP
Prior to
1/15/11
3% at age 50 50 Highest 12
month avg salary
8% of gross pay over a $238
exclusion allowance
41.923% of
gross pay
On or after
1/15/11
2.5% at age 55 50 Highest 36
month avg salary
8% of gross pay over a $238
exclusion allowance
41.923% of
gross pay
On or after
1/1/13 as
"New" Member
2.5% at age 57 50 Highest 36
month avg salary
11%* of gross
pay
41.923% of
gross pay

*As required by PEPRA (Public Employees Pension Reform Act), reflects a portion of the current "normal" cost rate. Normal cost rates are determined annually and subject to change. This percentage reflects the rate for the 16/17 fiscal year.

The Public Employees' Pension Reform Act of 2013 ("PEPRA") provides that the new pension formula be offered to new members. The CSU's understanding is that an employee who previously worked for a CalPERS-covered employer would be considered a "new member" if the employee changes public employers and the separation between employers is greater than six months, unless the change of employment is between state entities or schools.

What is Reciprocity?

As a member of CalPERS you may be eligible for the benefits of reciprocity. Reciprocity is an agreement among public retirement systems to allow members to move from one public employer to another public employer within a specific time limit without losing valuable retirement and related benefit rights.

Detailed information about establishing reciprocity can be found in the CalPERS publication "When You Change Retirement Systems" (PUB-16) available online at the CalPERS Forms and Publications Center, or in the Human Resources office.

Purchasing CalPERS Service Credit

As a member of CalPERS you may be eligible to purchase additional service credit such as service prior to membership, military service, and for certain types of leaves of absence.

More information can be found in "Service Credit Purchase Options" (PUB-12) and "Military Service Purchase Options" (PUB-15) available online at the CalPERS Forms and Publications Center, or in the Human Resources office.

Savings Plus, Part-time, Seasonal, Temporary Employees (PST) Plan

The Federal Omnibus Budget Reconciliation Act (COBRA) of 1990 requires that part-time, seasonal, or temporary public employees who are not members of a retirement system be covered either by a qualified retirement plan or by Social Security. This requirement applies to Cal Poly employees who are presently excluded from membership in the California Public Employees' Retirement System (CalPERS).

Currently, all non-CalPERS eligible employees are placed into the Part-Time, Seasonal, Temporary Employees Retirement Program – Section 457 Deferred Compensation Plan. It is administered by the Department of Personnel Administration under the Savings Plus Program.

Employees contribute 7.5% of their gross pay into the PST plan. No employer contributions are made. Employees who participate in the PST retirement program do not contribute to Social Security. For more information, see the PST Fact Sheet.

If you become a CalPERS retirement member after belonging to the PST retirement plan you have two options for your PST funds: 1) Some employees use their funds to purchase CalPERS service credit to add to their years of service, 2) You may be able to request an In-Service Withdrawal, see the 457 Voluntary In-Service Withdrawal Request form for the eligibility rules and the PST website for other options.

Employment After Retirement

There are no limits to working for a non CalPERS employer after retirement. However, there are restrictions when working for a CalPERS agency. For further information regarding employment after retirement please click here.