Retirement Planning Resources

Congratulations on your decision to retire and thank you for your years of service to Cal Poly!

Below you will find key steps and information to help you prepare for retirement. You can find a more information in the CalPERS publication Planning Your Service Retirement, or by watching the CalPERS Retirement Planning Checklist video webinar.

• Retirement Timeline

  Retirement Planning Checklist

• Choosing a Retirement Date

  Choosing a retirement date in not a one size fits all decision and is one of the most important decisions to make when planning your retirement. Some things to consider when choosing a retirement date:

  • Your separation date and retirement date cannot be the same date
  • Your retirement may be effective any day of the week, even on a weekend
  • The benefit factor used in the caculation of your retirement benefit is based on your age at retirement. It increases each quarter year from your birthday, up to a maximum age of 63 or 67 (depending on your retirement formula). CalPERS Benefit Factor Charts (State Misc. & Industrial Member)
  • If you are retiring at the end of a calendar year, your retirement date may affect how soon you begin to receive cost-of-living adjustment (COLA). The first COLA increase is effective on May 1 of the second calendar year following your retirement date.
  • A full time employee earns one-tenth (.1) of a year of service credit for each month worked. An employee cannot earn more than 1 full year in any given fiscal year.

  View the CalPERS Quick Tip: Choosing a Retirement Date video.

• Sick Leave Balance

  Sick Leave Balance

  Any unused sick leave is converted to additional service credit if the employee retires within 120 days of separation. Eight hours of sick leave equals one day (.004 of a year of service) and it takes 2000 hours of sick leave to receive one year of service credit.

  Your initial pension checks will not include the sick leave calculation. It may take CalPERS up to 120 days to process and for the adjustment to be included on your pension check.

• Service Credit Purchase

  Service Credit Purchase

  Obtain a cost estimate from CalPERS to purchase any service credit you may be eligible for and begin the purchase process. CalPERS must receive your election form to purchase service credit and full payment in advance of your retirement date. View more information and steps to apply on the CalPERS Service Credit webpage

• Health Benefits In Retirement

  Health Benefits Into Retirement Benefits

  If you are vested for health and retire from a CSU in a benefit eligible position, you are eligible to continue your Health, Dental, and Vision benefits into retirement. In order to qualify for health, dental, and vision in retirement, you must retire within 120 days of separation from the CSU.

  If you are enrolled in a CalPERS health plan as an active employee, your health coverage generally continues automatically into retirement if your permanent separation date and retirement date are within 30 days of each other. If you are benefits eligible, but not enrolled in the health benefits at the time of retirement, you have the option to enroll in coverage at retirement, within 60 days of retirement, or during any future Open Enrollment period

  Once an employee retires, CalPERS becomes the Health Benefits Officer. Retirees should contact CalPERS Customer Center at 888 CalPERS (or 888-225-7377) with any questions.

  Dental Coverage in Retirement

  If you are enrolled in a CSU Delta Dental plan, your dental coverage generally continues automatically into retirement if your permanent separation date and retirement date are within 30 days of each other.

  If you are enrolled in the Delta Dental enhanced level coverage as an active employee, you will have the option to continue enhanced coverage for a monthly fee or be covered at the basic level at no cost to you. View Retiree Dental Rates and Comparison Charts

  To elect a retiree dental plan, complete the AdobeSign Retiree Dental Form at least 30 days prior to your retirement date.

  Note: Dental benefits remain at the enhanced level at no cost for Faculty Early Retirement Program (FERP) participants for the duration of their FERP assignment if they average 50% timebase for the Academic Year

  Vision Coverage in Retirement

  Vision Insurance does not automatically continue into retirement. Vision insurance is a voluntary benefit and an employee must request enrollment by completing the VSP Retiree Vision Enrollment Form which is available through Human Resources or by visiting the CSU Retiree Vision Website

  Retirees have up to 60 days from their retirement date to enroll in VSP. Upon initial enrollment as a retiree, VSP will bill you directly for the first three months. After this period, the premium cost will be deducted from your retirement check.

  Note: Basic vision benefits continue at no cost for Faculty Early Retirement Program (FERP) participants for the duration of their FERP assignment if they average 50% timebase for the Academic Year

  Other Benefits

  For information about voluntary plan coverage in retirement, please see Cal State Retiree Benefits Website

• Medicare

  If you and/or a spouse/domestic partner is age 65 or older when you retire you must enroll in Medicare Parts A and B. Contact Human Resources 30-60 days prior to your retirement date to request forms for enrollment in Part B. Generally, the effective date will be the month following your retirement. Once you notify CalPERS of your Medicare enrollment, your CalPERS health plan will move to the Supplemental position behind Medicare.

  Log into myCalPERS and use the Search Health Plans Into Retirment tool to research the health plan rates and coverage for Medicare Supplement and Combination plan.

  You can find more information on the Social Security Medicare website. You can also request to speak with a Medicare expert by contacting HiCAP (805) 928-5663 or www.centralcoastseniors.org/hicap

• Vacation and Settlement Pay

  Lump Sum Vacation and Settlement Pay

  You may want to use unused vacation time, or decide to receive it as a lump sum. Remember that all vacation requests are subject to approval by your department.

  Any lump sum (unused vacation credits, personal holiday, or CTO) or settlement pay (residual pay for 10/12, 11/12, or AY employees) will be paid shortly after your separation date. When settlement pay issues as one check instead of in monthly increments, federal and state taxes will be calculated on that amount as though it were one month’s pay.

  When you leave employment, you have the option to request tax deferral of your 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 for the plan. Employees interested in this option should contact Human Resources Benefits 60 days prior to separation.

• Faculty Early Retirment Program (FERP)

  Faculty Early Retirement Program

  Faculty members who are interested in the FERP program should review the information available on the Academic Personnel website and can locate the Election form on the Academic Personnel forms page.

• Emeritus

  Emeritus

  Retired faculty and staff are eligible for emeritus status if they have completed ten full years, or more, of meritorious service at Cal Poly. Academic Personnel and Human Resources initiate the processes respectively and will notify eligible employees.

• What to Expect After Retirement

  What to Expect After Retirement

  After your application has been processed, CalPERS will send a First Payment Acknowledgment letter, including the date of your first retirement check, amount you can expect to receive, and important income tax information. If you have CalPERS health coverage, a letter will be sent to you with information regarding these benefits. Keep these letters with your other CalPERS information and important financial papers.

  If you didn't retire on the first of the month, your check will cover the period from your retirement date to the end of the month. Afterwards, CalPERS will direct deposit or mail your retirement check on the first of the month. In most cases, you should receive your first retirement check around the first of the month following your retirement date.

  View CalPERS Pay Day Information