Retirement Plans

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

  • CalPERS (California Public Employee Retirement System) or
  • PST (Part time, Seasonal, Temporary)

Membership with the California Public Employees' Retirement System (CalPERS) for retirement is based on full-time employment for more than six months or half-time employment for more than one year. Lecturers qualify for CalPERS retirement at the beginning of their fourth consecutive quarter at half-time or greater. Membership is mandatory once an employee qualifies. Employees excluded from CalPERS membership are covered by the CSU Part-Time, Seasonal and Temporary Retirement Plan ("PST") administered through Savings Plus.

CalPERS

CalPERS is a defined benefit retirement plan. It provides benefits based on members' years of service, age, and final (or hightest) compensation. In addition, benefits are provided for disability, death, and payments to survivors or beneficiaries of eligible members. Cal Poly's Human Resources has created an online resource for everything you need to know before retiring: Retirement Basics: De-mystifying the Process. (Updates in process. Currently for "Classic" CalPERS members only.) Watch this informative tutorial in the comfort of your own home and plan the next chapter of your life! The program is about 30 minutes, but may be paused for notetaking or your later return. This information pertains specifically to CSU Retirees.

Cal Poly employees eligible for CalPERS membership become fully vested in their retirement benefits after five years of credited service. Vesting means you are entitled to a pension once you reach retirement age (varies). Eligible retirees will continue enrollment in health and dental plans throughout retirement, paying the same premium prices offered active employees. Timelines and information about retiring from CalPERS can be found by downloading Cal Poly's Retirement Process. You can track your retirement funds and get pension estimates by Creating a CalPERS Account.

CalPERS Retirement Plans

State Misc Tier 1: All except State Public Safety

Employees Hire Date Formula Earliest
Ret Age
Pension
Based on
Employee
Contribution
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
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
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.

Health Benefits in Retirement

New CalPERS Webinar Available: "Health Benefits into Retirement"

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" (PERS-PUB-16) available online at the CalPERS Forms and Publications Center, or in the Human Resources office.

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PST

The Federal Omnibus Budget Reconciliation Act (OBRA) 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.

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.

Retirement Funds after Separation

If you are a CalPERS member, review Leaving CalPERS Membership to see your options.
If you are a PST member, review Savings Plus Forms And Publications to see your options.

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