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HomeMy WebLinkAboutLocal Safety Member Benefit Pub 9What You Need to Know About Your CalPERS Local Safety Benefits YouR BENEfitS | YouR futuRE 1888CalPERS (or 888-225-7377) | www.calpers.ca.gov ContentS Introduction .............................................3 Your Retirement Benefits .................................4 Service Retirement or “Normal” Retirement ...................4 Disability Retirement ...................................4 Industrial Disability Retirement ............................4 How Your Retirement Is Funded ...........................5 How Your Retirement Benefit Is Calculated ...................5 Estimating Your Retirement Allowance .......................8 Decisions to Make Before You Retire .......................9 Your Options at Retirement ...............................9 Survivor Continuance ..................................11 Pre-Retirement Death Benefits ...........................12 Not Job-Related Death, Not Eligible to Retire ................12 Not Job-Related Death, Eligible to Retire ....................14 Job-Related Death, Not Eligible to Retire ....................15 Job-Related Death, Eligible to Retire .......................17 1959 Survivor Benefit Program ...........................18 Health Insurance, Covered Under PeMHCA ................20 How Retirement Affects Your Health Benefits .................20 Your Separation Date and Your Retirement Date ...............21 Making Changes to Your Health Plan After Retirement ..........22 Additional Benefits to Consider ..........................23 Reciprocity — Other California Public Retirement Systems .......23 Cost-of-Living Adjustment (COLA) .......................23 Inflation Protection (PPPA) ..............................23 Sick Leave Credit .....................................24 Internal Revenue Code (IRC) Section 401 (a)(17) Contribution Limit ....................................24 Internal Revenue Code (IRC) Section 415 (b) Retirement Benefit Limit ................................25 Retirement Formulas and Benefit Factors .................26 2% at 50 Benefit Factors ................................26 2% at 55 Benefit Factors ................................28 2% at 57 Benefit Factors ................................30 2.5% at 55 Benefit Factors ...............................32 2.5% at 57 Benefit Factors ...............................34 2.7% at 57 Benefit Factors ...............................36 3% at 50 Benefit Factors ................................38 3% at 55 Benefit Factors ................................40 2 CalPERS Member Publication | Local Safety Become a More Informed Member ........................42 CalPERS On-Line .....................................42 Reaching Us By Phone .................................42 my|CalPERS .........................................42 CalPERS Education Center ..............................42 Visit Your Nearest CalPERS Regional Office ..................43 Glossary ...............................................44 Information Practices Statement .........................46 Special thanks ..........................................47 3888CalPERS (or 888-225-7377) | www.calpers.ca.gov IntRoDUCtIon Retirement can be one of the best stages in your life. It can also be complicated and at times stressful, if you are not educated about your benefits and have not done the proper planning. Understanding the fundamentals of your CalPERS retirement benefits is a good first step toward a happy and fruitful retirement. This publication describes retirement benefits and formulas for Local Safety members. “Local Safety” members are individuals employed by a public agency or special district that has contracted with CalPERS who are involved in law enforcement, fire suppression, the protection of public safety, or who are employed in a position designated by law as “Local Safety.” Featured throughout this publication are CalPERS members from the Amador County Sheriffs Department, Jackson Police Department, Sacramento Metro Fire, and the Sacramento Police Department Mounted Unit. Like them, you deserve to understand the full spectrum of retirement and death benefits available for you and your beneficiary(ies). This publication will help educate you about your retirement formulas and benefits. It will also provide you information on contributions, health benefits, and other programs you should consider before and after retirement. It will help you to choose the best retirement option for you and your beneficiary(ies). You may obtain a copy of any publication or form referenced in this publication, by calling CalPERS at 888 CalPERS (or 888-225-7377) or by visiting CalPERS On-Line at www.calpers.ca.gov. 4 CalPERS Member Publication | Local Safety YoUR RetIReMent BeneFItS There are three types of retirement benefits: Service Retirement or “Normal” Retirement Disability Retirement Industrial Disability Retirement Service Retirement or “normal” Retirement To be eligible for service retirement, you must be at least age 50 and have a minimum of five years of CalPERS-credited service. If you are employed on a part-time basis, and you have worked at least five years, contact CalPERS to find out if an exception will apply to you. There is no mandatory retirement age for Local Safety members. If you are considering applying for a service retirement, you should obtain the CalPERS publication A Guide to Completing Your CalPERS Service Retirement Election Application. Disability Retirement This type of retirement applies to you if you become disabled and can no longer perform the duties of your job. Disability retirement has no minimum age requirement and does not have to be job-related. However, you must have a minimum of five years of CalPERS service credit. If you are employed on a part-time basis and you have worked at least five years, contact CalPERS to find out if an exception may apply to you. Industrial Disability Retirement This type of retirement applies to you if you become disabled from a job-related injury or illness and can no longer perform the duties of your job. Industrial disability retirement has no minimum age or service credit requirement. You may apply for a disability or industrial disability retirement if: You are working for a CalPERS-covered employer; or You are within four months of separation from a CalPERS-covered employer; or You separated at any time from your CalPERS-covered employer because of a disability and you have remained disabled since then; or You are on military or approved leave. As a Local Safety member, your employer will make the determination as Emergency Retirement CalPERS will expedite retirement processing for you if you are terminally ill or facing imminent death. Contact CalPERS or your employer immediately if there is a need for emergency retirement. 5888CalPERS (or 888-225-7377) | www.calpers.ca.gov to whether you are incapacitated. Once the determination is made, your employer will notify CalPERS of their finding and we will administer the benefit accordingly. If you are considering applying for disability or industrial disability retirement, you should obtain the CalPERS publication A Guide to Completing Your CalPERS Disability Retirement Election Application. How Your Retirement Is Funded Three sources fund a defined benefit retirement plan like CalPERS. First, employees generally make contributions into the System. The percentage of your contribution is fixed by statute and is generally intended to be an amount that will cover half of the normal cost of the benefit earned per year. Normal cost will vary by benefit type as higher benefit formulas have higher normal costs. The second source of funding is earnings from the investment of System assets in stocks, bonds, real estate, and other investment vehicles. The amount contributed from this source fluctuates from year to year. The balance of the funding is provided by employer contributions. Employer contributions decline when investment returns rise and increase when investment returns decline. In a defined benefit retirement plan, a retiree will receive a benefit determined by a set formula. CalPERS uses the member’s years of service, age at retirement, and highest one-year or three-year compensation while employed. This contrasts with a defined contribution plan, in which the benefits are determined not by a formula, but solely by the amount of contributions in an account, plus earnings. How Your Retirement Benefit Is Calculated Now that you understand the basic building blocks of a defined benefit retirement plan, it’s time to learn how to calculate your retirement benefit. Three factors are multiplied together to calculate your service retirement: Service Credit Benefit Factor Final Compensation Service Credit You earn service credit for each year or partial year you work for a CalPERS- covered employer. Service credit accumulates on a fiscal year basis, July 1 through June 30. Refer to your CalPERS Annual Member Statement to verify your current service credit total as of June 30. In some cases, you may be eligible for other types of service credit that can help 6 CalPERS Member Publication | Local Safety you maximize your retirement benefit. Other types of service credit include: Unused sick leave at retirement Redeposit of contributions you previously withdrew from CalPERS Service with a CalPERS-covered employer prior to your date of membership Service with a public agency prior to the date of that agency’s contract with CalPERS Certain types of leaves of absence, military service, Peace Corps, AmeriCorps*Vista, AmeriCorps For more information about service credit, obtain the CalPERS publication A Guide to Your CalPERS Service Credit Purchase Options. Benefit Factor Your benefit factor is the percentage of pay to which you are entitled for each year of service. It is determined by your age at retirement and the retirement formula based on your membership date with each employer. This guide explains the following Local Safety retirement formulas: Limitations The percentage of pay to which you are entitled is limited for the following retirement formulas: Percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation. Percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation.** Percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation.** Percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation. Percentage of pay to which you are entitled cannot exceed 90 percent of your final compensation. 502percent@ 552percent@ 55percent@52. 503percent@ 553percent@ Health Vesting Consult your agency Personnel office or call CalPeRS to determine which types of service credit apply to health vesting requirements. Final Compensation Limits the Public employees’ Retirement Law limits the percentage of final compensation a safety member may receive. If you have service under different safety formulas, the service under the different formulas might not combine toward the limit. Additionally, service in a miscellaneous retirement formula is not applied against the limit. Membership date on or after January 1, 2013 If you have service under both the 2% @ 55 (Local Safety) and the 2.5% @ 55 formula (Local Safety), the percentage under the two formulas combined cannot exceed 90 percent of final compensation. 553percent@503percent@ 502percent@ 55percent@52.57percent@52. 57percent@72. 552percent@ 572percent@ (*) 7888CalPERS (or 888-225-7377) | www.calpers.ca.gov Refer to your CalPERS Annual Member Statement to verify your retirement formula. If you have safety service with multiple employers and under different safety formulas, there could be more than one maximum benefit cap applied to your retirement allowance. Contact CalPERS for more information. Understanding Your Retirement Formula Starting on page 26 we have provided two charts for each of the Local Safety retirement formulas. The first chart shows how the benefit factor increases for each quarter year of age and the number of years of service to reach your maximum percentage allowed by law. The second chart shows the percentage of final compensation you will receive. If you became a member prior to January 1, 2013, but you permanently separate from employment and return to membership after a break in service of more than 6 months, you are subject to the retirement formula in place on January 1, 2013 for any service credit earned after that date. This does not apply if you return to the same employer. Note: All State departments are considered the same State employer. All school county offices and districts are considered the same school employer. Final Compensation Your final compensation is the highest average pay rate and special compensation during any consecutive one-year or three-year period. Which compensation period we use depends on your membership date and employer’s contract with CalPERS. If you are not sure, ask your Personnel Office. We use your full-time pay rate, not your earnings. If you work part-time, we will use your full-time equivalent pay rate to determine your final compensation. my|CalPERS automatically finds and uses the highest compensation period during your employment with CalPERS. If your membership date is on or after January 1, 2013, and you are coordinated with Social Security, there is a cap on the compensation used to calculate your benefit equal to the Social Security wage base, or $113,700 in 2013. If you are not coordinated with Social Security, the cap on compensation used to calculate your benefit is equal to 120 percent of the Social Security wage base, or $136,400 in 2013. The actual compensation cap depends on the year of retirement and is adjusted annually based on the Consumer Price Index for all Urban Consumers. Special Compensation Certain items such as special compensation earned during your final compensation period may be included in your final compensation. Contact your employer or CalPERS if you are unsure which items of special compensation can be included. Pay Rate Pay rate is your base pay, paid on a full-time basis during normal working hours. 8 CalPERS Member Publication | Local Safety estimating Your Retirement Allowance More Than One Year From Retirement You have two options for generating retirement estimates when you are more than one year from your expected retirement date. The first option is to use the CalPERS Retirement Estimate Calculator on our website at www.calpers.ca.gov. This online calculator allows you to generate multiple estimates, customizing them to include projections based on: Career plans Expected promotions or pay increases Special Compensation Possible changes to your time base Any expected formula changes Alternative retirement dates Additional service credit You can print but not save estimates produced using this calculator. The second option is to log into my|CalPERS at my.calpers.ca.gov, which requires a username and password, to obtain an estimate that incorporates data your employer already reported to CalPERS. You can generate a variety of scenarios and save them in my|CalPERS for future reference. Within One Year of Retirement If you are within one year of your expected retirement date, you may request a CalPERS-generated retirement estimate by completing a Retirement Allowance Estimate Request Form and mailing it to the address on the form. You can find this form in the Forms & Publications Center at www.calpers.ca.gov. A CalPERS-generated retirement estimate uses your most current CalPERS account information, but does not include projections of salary increases, special compensation or other job-related changes. It allows you to make informed retirement decisions and verify that our records properly reflect or match yours. When you eventually submit your retirement election application, you must specify a retirement option and designate a beneficiary. The CalPERS- generated estimate may display options that are not available with the online Retirement Estimate Calculator. You are limited to two CalPERS-generated estimate requests in a 12-month period and must be within one year of retirement. 9888CalPERS (or 888-225-7377) | www.calpers.ca.gov DeCISIonS to MAke BeFoRe YoU RetIRe Your options at Retirement At retirement, you can choose to receive the highest benefit payable, which is referred to as the “Unmodified Allowance.” The Unmodified Allowance provides a monthly benefit to you that ends upon your death. You also have the choice of requesting a reduction in the Unmodified Allowance to provide a lump-sum or monthly benefit for a beneficiary upon your death. This section gives you an overview of various options available to you at retirement. Option 1 This retirement option provides a lump-sum payment of your remaining member contributions to your beneficiary after your death. The reduction to your monthly benefit to provide this payment is based on your life expectancy at retirement and the amount of your contributions. You may name one or more beneficiary(ies), and you may name a new beneficiary at any time. If you name someone other than your spouse or registered domestic partner as your Option 1 beneficiary(ies), upon your death your spouse or domestic partner may still be entitled to a community property share of any remaining contributions. The following options, 2, 2W, 3, 3W, and 4, provide lifetime monthly benefits to your designated beneficiary. The reduction to your monthly benefit to provide a monthly allowance to your beneficiary is based on both your life expectancy at retirement and your beneficiary’s - the younger your beneficiary, the greater the reduction. If you have someone eligible for Survivor Continuance, the reduction is applied only to the option portion of your allowance. In most cases, you may name only one beneficiary, and you may not change your designation after retirement except under limited circumstances. You may name someone other than your spouse or registered domestic partner for a lifetime death benefit allowance under options 2, 2W, 3, 3W or 4. However, your spouse or registered domestic partner may be entitled to a community property share of the beneficiary’s monthly death benefit. Option 2 The same retirement allowance you receive will be paid to your beneficiary for life. If Survivor Continuance applies, and your beneficiary is not your eligible survivor, the beneficiary’s allowance will not include the Survivor Continuance portion. Your retirement allowance will increase to the Unmodified Allowance if: Your beneficiary dies; or Your non-spouse or non-domestic partner beneficiary waives entitlement to the Option 2 benefit; Your beneficiary is your spouse or domestic partner legally recognized in California and upon a divorce, legal separation, termination of partnership, Unmodified Allowance the Unmodified Allowance is the highest amount payable and provides a monthly benefit to you that ends upon your death. 10 CalPERS Member Publication | Local Safety or annulment you provide CalPERS with a judgment that awards you the entire interest in your CalPERS benefits and You notify CalPERS of the change. Option 2W As an alternative to the Option 2, you may elect the slightly higher allowance under Option 2W. However, your allowance will not increase to the Unmodified Allowance under the situations described in Option 2. Option 3 In this option, one-half of your monthly retirement allowance will be paid to your beneficiary for life. If Survivor Continuance applies, and your beneficiary is not your eligible survivor, the beneficiary’s allowance will not include the Survivor Continuance portion. Your retirement allowance will increase to the Unmodified Allowance if: Your beneficiary dies; or Your non-spouse or non-domestic partner beneficiary waives entitlement to the Option 3 benefit; Your beneficiary is your spouse or domestic partner legally recognized in California and upon a divorce, legal separation, termination of partnership, or annulment you provide CalPERS with a judgment that awards you the entire interest in your CalPERS benefits; and You notify CalPERS of the change. Option 3W As an alternative to the Option 3, you may elect the slightly higher allowance under Option 3W. However, your allowance will not increase to the Unmodified Allowance under the situations described in Option 3. Option 4 Option 4 is a somewhat flexible option. There are several unique variations of Option 4, each specifically designed to mesh with various situations that might apply to you. If you are interested in choosing a lifetime option, you should familiarize yourself with these options by obtaining the CalPERS publication A Guide to CalPERS Retirement Option 4. The amount payable to your beneficiary under Option 4 cannot exceed the amount payable under Option 2W. The percentage payable to a beneficiary must be less than 100 percent. Please note: There is no provision with any variation of Option 4 for your allowance to increase to the Unmodified Allowance under the situations described in Option 2 or 3. 11888CalPERS (or 888-225-7377) | www.calpers.ca.gov Survivor Continuance In making a decision about whether to reduce your Unmodified Allowance to provide for a beneficiary, you will want to consider if your employer offers Survivor Continuance. This is a contracted employer paid benefit that public agency employers can offer you. This benefit consists of a monthly allowance that automatically continues to an eligible survivor following your death after retirement regardless of the retirement option you select. Who is Eligible? Your spouse, if you were married for at least one year before your retirement and remained married until the date of your death, will receive the Survivor Continuance benefit for life. (For disability retirement, you need only to have been married at retirement and remained married until the date of your death.) Your domestic partner, if you were legally registered at least one year prior to your retirement and continuously until your death, will receive the Survivor Continuance benefit for life. (For disability retirement, you need only to have been registered as domestic partners at retirement and remained registered until the date of your death.) If you do not have an eligible spouse or registered domestic partner, your natural or adopted unmarried children under age 18 will receive this monthly benefit until marriage or age 18. An unmarried child who was disabled prior to age 18 and whose disability has continued without interruption will receive this benefit until the disability ends or until marriage. Qualifying financially dependent parents, if none of the above. Survivor Continuance Survivor Continuance will apply only if you have an eligible family member as of the date of your death. Impact of Social Security If your service is not coordinated with Social Security, the Survivor Continuance will be one- half of your Unmodified Allowance. If your service is coordinated with Social Security, the Survivor Continuance will be one- quarter of your Unmodified Allowance. If you have some time covered and some time not covered under Social Security, or if you have a combination of service under CalPeRS with the State or a local public agency, special consideration must be given to figure the Survivor Continuance amount. 12 CalPERS Member Publication | Local Safety PRe-RetIReMent DeAtH BeneFItS As a CalPERS member, you are eligible for various pre-retirement death benefits depending on your membership category, employer, retirement eligibility status, and other factors. The benefits range from a simple return of your contributions plus interest to a monthly allowance payable to a spouse or domestic partner equal to what you would have received upon retirement. To be eligible for any type of monthly pre-retirement death benefit, your spouse or domestic partner must have been either married to you or legally registered before the occurrence of the injury or the onset of the illness that resulted in your death or for at least one year prior to your death. Each member’s death benefits can vary significantly depending on circumstances and data. Questions relating to specific situations should be addressed to CalPERS staff for a more accurate description of individual benefits. Upon a member’s pre-retirement death, the respective employer and surviving family member are encouraged to immediately contact CalPERS for assistance. For your convenience, we have divided the pre-retirement section into two parts: Not Job-Related Death Job-Related Death not Job-Related Death, not eligible to Retire You must be at least age 50 and have a minimum of five years of CalPERS- credited service or have worked part-time for at least five years to be eligible to retire. If you pass away before you are eligible to retire, your beneficiary(ies) are entitled to the following benefits. Alternate Death Benefit for Qualified Firefighters Talk to your employer to find out if they have contracted for this benefit. This benefit applies to members who have 20 or more years of CalPERS service credit at the time of death. Instead of the Basic Death Benefit, your eligible spouse or registered domestic partner may receive a monthly allowance equal to the amount you would have received if you had retired under a service retirement” at age 50 and elected Option 2W or if you are older than 50 the Option 2W will be based on your age at death. Upon the death of your spouse or registered domestic partner, the benefit will continue to your natural or adopted unmarried children under age 18. If you are not survived by either an eligible spouse or registered domestic partner, but you are survived by minor unmarried children under age 18, the unmarried children will receive an allowance until age 18 equal to one-half of what your highest service retirement allowance would have been had you retired at age 50, or if older than 50, it’s equal to half of what your highest service retirement allowance would have been based on your age at death. Eligibility for Monthly Death Benefits to be eligible for any type of monthly pre-retirement death benefit, your spouse or domestic partner must have been either married to you or legally registered before the occurrence of the injury or the onset of the illness that resulted in your death or for at least one year prior to your death. Pre-Retirement Death Benefits Designations If you name a beneficiary other than your spouse or registered domestic partner, your spouse or registered domestic partner will still receive their community property share. the remainder will be paid to your designated beneficiary(ies). to designate a beneficiary, please obtain a CalPeRS Beneficiary Designation Form from your personnel office or from CalPeRS on-Line. (note: this designation will be valid only if your death is not job-related. Different rules apply to job-related death benefit eligibility.) 13888CalPERS (or 888-225-7377) | www.calpers.ca.gov Inactive Members Beneficiaries of members who were separated from employment more than 120 days for non-health reasons are only eligible for the Limited Death Benefit, which consists of a return of contributions and interest from the member’s account. or .................................. Basic Death Benefit The Basic Death Benefit will be paid if: no one is eligible for the Alternate Death Benefit, or the person who is eligible for the Alternate Death Benefit chooses instead to receive the Basic Death Benefit; or a person other than a spouse or registered domestic partner is designated as a beneficiary for all or a portion of your contributions and interest. Benefit Payments If no one is eligible for the Alternate Death Benefit, your beneficiary will receive a lump-sum payment of: a refund of your contributions, plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months). Your beneficiary for the Basic Death Benefit will be determined as follows: named beneficiary, or if none; spouse or registered domestic partner, or if none; your children, or if none; parents, or if none; brothers and sisters, or if none; estate if probated, or if not; trust, or if none; next of kin, as provided by law. and ................................. 1959 Survivor Benefit Talk to your employer to find out if they have contracted for this benefit. Applicable only for members not covered under Social Security while employed under a CalPERS-covered agency. The 1959 Survivor Death Benefit may not be payable if the Special Death Benefit is elected. 14 CalPERS Member Publication | Local Safety not Job-Related Death, eligible to Retire If you pass away at age 50 or over with a minimum of five years of CalPERS- credited service, your beneficiary(ies) are eligible for the following benefits. Pre-retirement Option 2W Death Benefit Talk to your employer to find out if they have contracted for this benefit. Your eligible spouse or registered domestic partner will receive a monthly allowance equal to the amount you would have received if you had retired under a “service retirement” on the date of your death and elected Option 2W. The benefit is payable to your spouse or domestic partner until death. Upon the death of your spouse or domestic partner, the benefit will continue to your natural or adopted unmarried children under age 18. or .................................. 1957 Survivor Benefit This benefit provides a monthly allowance equal to one-half of what your highest “service retirement” allowance would have been had you retired on the date of your death. Those eligible to receive this allowance are: your spouse or registered domestic partner, or if none; your natural or adopted unmarried children under age 18. or .................................. Basic Death Benefit The Basic Death Benefit will be paid if: no one is eligible for either of the monthly allowances above; or the person who is eligible for one of the monthly allowances above chooses instead to receive the Basic Death Benefit; or a person other than a spouse or registered domestic partner is designated as a beneficiary for all or a portion of your contributions and interest. Benefit Payments Your beneficiary will receive a lump-sum payment of: a refund of your contributions plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months). 15888CalPERS (or 888-225-7377) | www.calpers.ca.gov If no one is eligible for the Pre-retirement Option 2W Death Benefit or the 1957 Survivor Benefit, your beneficiary will be determined as follows: named beneficiary, or if none; spouse or registered domestic partner, or if none; children, or if none; parents, or if none; brothers and sisters, or if none; estate if probated, or if not; trust, or if none; next of kin, as provided by law. and ................................. 1959 Survivor Benefit Talk to your employer to find out if they have contracted for this benefit. Applicable only for members not covered under Social Security while employed under a CalPERS-covered agency. The 1959 Survivor Death Benefit may not be payable if the Special Death Benefit is elected. Job-Related Death, not eligible to Retire You must be at least age 50 and have a minimum of five years of CalPERS- credited service to be eligible to retire. If you pass away before you are eligible to retire and your death is determined to be job-related, your beneficiary(ies) are entitled to the following benefits. Special Death Benefit Your eligible surviving spouse, registered domestic partner, or unmarried children or eligible unmarried stepchildren may receive a monthly allowance equal to one-half of your final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible surviving unmarried children in addition to your spouse or registered domestic partner, the allowance may be increased to a maximum of 75 percent. The Special Death Benefit is payable to your surviving spouse or registered domestic partner until death, or to your unmarried children until age 22. or .................................. Alternate Death Benefit for Qualified Firefighters Talk to your employer to find out if they have contracted for this benefit. This benefit applies only if you had 20 or more years of CalPERS service credit at the time of death. Instead of the Basic Death Benefit, your eligible spouse or registered domestic partner may receive a monthly allowance equal to the amount you would have received if you had retired under a “service retirement” at age 50 and elected Option 2W. Upon the death of your spouse 16 CalPERS Member Publication | Local Safety or registered domestic partner, the benefit will continue to your natural or adopted unmarried children under age 18. If you are not survived by either an eligible spouse or registered domestic partner, but you are survived by unmarried minor children, the children will receive an allowance equal to one-half of what your highest service retirement allowance would have been had you retired at age 50. or .................................. Basic Death Benefit The Basic Death Benefit will be paid if: no one is eligible for either of the monthly allowances above; or the person who is eligible for one of the monthly allowances above chooses instead to receive the Basic Death Benefit. Benefit Payments Your beneficiary will receive a lump-sum payment of: a refund of your contributions, plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months). If no one is eligible for the Special Death Benefit or Alternate Death Benefit, your beneficiary for the Basic Death Benefit will be determined as follows: named beneficiary, or if none; spouse or registered domestic partner, or if none; children, or if none; parents, or if none; brothers and sisters, or if none; estate if probated, or if not; trust, or if none; next of kin, as provided by law. and ................................. 1959 Survivor Benefit Talk to your employer to find out if they have contracted for this benefit. Applicable only for members not covered under Social Security while employed under a CalPERS-covered agency. The 1959 Survivor Death Benefit may not be payable if the Special Death Benefit is elected. 17888CalPERS (or 888-225-7377) | www.calpers.ca.gov Job-Related Death, eligible to Retire If you pass away at age 50 or over with a minimum of five years of CalPERS- credited service, and your death is determined to be job-related, your beneficiary(ies) are eligible for the following benefits. Special Death Benefit Your eligible surviving spouse, registered domestic partner, or unmarried children or eligible unmarried stepchildren may receive a monthly allowance equal to one-half of your final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible surviving unmarried children in addition to your spouse or registered domestic partner, the allowance may be increased to a maximum of 75 percent. The Special Death Benefit is payable to your surviving spouse or registered domestic partner until death, or to your unmarried children until age 22. or .................................. Pre-retirement Option 2W Death Benefit Talk to your employer to find out if they have contracted for this benefit. Instead of the Special Death Benefit, your eligible spouse or registered domestic partner may choose to receive a monthly allowance equal to the amount you would have received if you had retired under a “service retirement” on the date of your death and elected Option 2W. The benefit is payable to your spouse or domestic partner until death. Upon the death of your spouse or domestic partner, the benefit will continue to your natural or adopted unmarried children under age 18. or .................................. 1957 Survivor Benefit This benefit provides a monthly allowance equal to one-half of what your highest “service retirement” allowance would have been had you retired on the date of your death. Those eligible to receive this allowance are: your spouse, registered domestic partner, or if none; your natural or adopted unmarried children under age 18. or .................................. Basic Death Benefit The Basic Death Benefit will be paid if: no one is eligible for any of the monthly allowances described above; or the person who is eligible for one of the monthly allowances above chooses instead to receive the Basic Death Benefit. 18 CalPERS Member Publication | Local Safety Benefit Payments Your beneficiary will receive a lump-sum payment of: a refund of your contributions plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months). If no one is eligible for the Special Death Benefit, the Pre-Retirement Option 2W Death Benefit, or the 1957 Survivor Benefit, your beneficiary will be determined as follows: named beneficiary, or if none; spouse or registered domestic partner, or if none; children, or if none; parents, or if none; brothers and sisters, or if none; estate if probated, or if not; trust, or if none; next of kin, as provided by law. and ................................. 1959 Survivor Benefit Talk to your employer to find out if they have contracted for this benefit. Applicable only for members not covered under Social Security while employed under a CalPERS-covered agency. The 1959 Survivor Death Benefit may not be payable if the Special Death Benefit is elected. 1959 Survivor Benefit Program The 1959 Survivor Benefit coverage is available by contract amendment for those not covered by federal Social Security with their employer. Covered members are required to pay a minimum $2 monthly fee that is deducted from their salary specifically to fund the 1959 Survivor Benefit Program. The Program provides a monthly allowance to eligible survivors of members who were covered by this benefit program and died before retirement. The 1959 Survivor Benefit allowance is payable in addition to any other pre- retirement death benefit paid by CalPERS, with the possible exception of the Special Death Benefit. If the 1959 Survivor Benefit is greater than the Special Death Benefit, then the difference is paid as the 1959 Survivor Benefit. Eligible Survivors Spouse A surviving spouse is a husband or wife who was legally married to you at least one year before your death or before the occurrence of the injury or onset of the illness that resulted in your death. A surviving spouse is entitled to the 1959 Survivor Benefit as long as they have care of an eligible child, or are at 19888CalPERS (or 888-225-7377) | www.calpers.ca.gov least age 62 (age 60 at Level 4 and under the Indexed Level or, if contracted by your employer for level 1, 2, or 3.) A surviving spouse may remarry and continue to receive their allowance. Domestic Partner To be eligible, a surviving domestic partner must have been in a legally registered domestic partnership with the member at least one year before the member’s death or before the occurrence of the injury or onset of the illness that resulted in the member’s death. A surviving registered domestic partner is entitled to the 1959 Survivor Benefit as long as they have care of an eligible child, or are at least age 62 (age 60 at Level 4 and under the Indexed Level or, if contracted by your employer for Level 1, 2, or 3). A surviving registered domestic partner may register as a domestic partner to someone else and continue to receive the allowance. Children An unmarried child or unmarried stepchild (if the child was living with the member in a parent-child relationship) is eligible for benefits while under age 22. An unmarried child who is incapacitated because of a disability that began before attaining age 22 may be entitled to the benefit until married or the disability ends. If an unmarried child is in the care of a guardian or is living alone, the unmarried child’s portion of the benefit is payable to the guardian or to the unmarried child directly, rather than to the surviving spouse. Parents A parent who is at least age 62 (age 60 at Level 4 and under the Indexed Level, or if contracted by your employer for Level 1, 2, or 3) may be eligible if there is no surviving spouse, registered domestic partner, or eligible children, and the parent(s) was dependent on the member for at least half of their support at the time of the member’s death. 1959 Survivor Monthly Benefit Levels Currently, there are five different benefit levels for Local Safety members. Your coverage depends on your employer’s contract with CalPERS. Please refer to the following chart to determine the amounts payable under each level depending on the number of eligible survivors: Benefit Level One Survivor Two Survivors Three or More Survivors ** Level 1 $180 $360 $430 Level 2 $225 $450 $538 Level 3 $350 $700 $840 Level 4 $950 $1,900 $2,280 Indexed Level* $634.10 $1,268.20 $1,902.30 Amounts can differ if all children are not in the spouse’s or domestic partner’s care. The amounts quoted are effective January 1, 2012. These amounts will increase by 2 percent on January 1, 2013 and each year thereafter. 20 CalPERS Member Publication | Local Safety HeALtH InSURAnCe, CoveReD UnDeR PeMHCA How Retirement Affects Your Health Benefits If you are nearing retirement, you should read this section to gain an understanding of how retirement will affect your health benefits. Any questions can be directed to your Health Benefits Officer or Personnel Office. If, upon retirement, you are enrolled in a CalPERS “Basic” health plan and you are eligible for Part A at no cost to you, State law does not allow you to remain enrolled in your “Basic” plan. Contact CalPERS immediately after receiving your Medicare card to coordinate the effective date of your Medicare coverage. If you are retiring within 90 days of your own or your spouse’s 65th birthday, contact the Social Security Administration (SSA) at (800) 772-1213 or TTY (800) 325-0778 about signing up for Medicare. In addition to signing up for Medicare, you will have to change from a Basic health plan to a Medicare plan that combines your Medicare benefits with your CalPERS- sponsored health benefits. CalPERS Medicare health plan members have prescription drug coverage that is as good or better than Medicare Part D prescription coverage and must not enroll in an external Medicare Part D plan. If you do enroll in a non-CalPERS Medicare part D plan, you will lose your CalPERS health coverage. If you do not qualify for premium-free Medicare Part A based on your Social Security/Medicare work record or the record of your current, former, or deceased spouse, you may remain in a CalPERS “Basic” health plan. If you later qualify for Medicare Part A at no cost, you must enroll in Medicare Part B and in a CalPERS Medicare health plan. You may enroll in a Supplement to Medicare or Managed Medicare health plan, and CalPERS health plans offer several ways to supplement Medicare. Please see the CalPERS Medicare Enrollment Guide for more detailed information. Once you are retired, contact CalPERS if you have any questions about your health benefits or if you need to make changes to your plan or dependents. PEMHCA Public employees’ Medical and Hospital Care Act. If Your Effective Date of Retirement… is more than 120 days after separation from employment, you are not eligible to be enrolled in a CalPeRS health plan at retirement or at any future date. Medicare Health Plans If at retirement you are enrolled in a CalPeRS health plan and you are eligible for Social Security Medicare benefits, State law prohibits your continued enrollment in the Basic plan. However, you can continue your CalPeRS health care by enrolling in a CalPeRS Medicare health plan. Contact CalPeRS immediately after receiving your federal Medicare card to determine your eligibility and to coordinate the effective date of your Medicare coverage. 21888CalPERS (or 888-225-7377) | www.calpers.ca.gov Making Direct Payment for Health Premiums to Cover Delays If you are aware of a delay in receiving your first retirement check, you should contact your Personnel office to discuss making direct payments for your health premiums. the direct payments will ensure continuation of services and claim payments for your current PeMHCA coverage. You will be reimbursed for the direct payment amounts by the plan as soon as the payments are made by CalPeRS. Your Separation Date and Your Retirement Date As retirement approaches, you should check your calendar to determine the best way to maintain your health coverage. Two dates are particularly important: your separation date and your retirement date. If you are not sure when these dates occur, talk to your employer. The following are your health plan enrollment options when you retire: If your separation date and your retirement date are within 30 days of each other and you are enrolled in a CalPERS health plan at the time of retirement, your coverage will continue into retirement without a break. If you do not want your health benefits to continue into retirement, you have the option to cancel your coverage by: Submitting a Health Benefits Plan Enrollment form to your employer if you are still employed) Declining health coverage in Section 7 of the CalPERS Retirement Election Application Calling or writing CalPERS to request to cancel health coverage if you are retired) If your separation date and your retirement date are between 30 and 120 days of each other, your coverage will not automatically continue. You may re-enroll by either writing to the CalPERS Health Account Services Division within 60 days of your retirement date and requesting re-enrollment, or waiting for the next Open Enrollment period. You can pay monthly premiums directly to your health plan when you are not on a regular pay status. You can avoid having your coverage suspended between your last day of work and your retirement date by paying the full monthly premium. Contact the Health Benefits Officer where you worked and complete a Direct Payment Authorization form within 30 days of your last day on pay status. If you are not enrolled in a health plan at retirement and your retirement date is within 120 days of separation, you may enroll within 60 days of retirement or during a future Open Enrollment period. Contact your Health Benefits Officer if you are an active employee or CalPERS if you are retired. If your retirement effective date is more than 120 days after separation from employment, you are not eligible for coverage at retirement or at any future date. There are some exceptions to this rule for exempt State employees. Contact CalPERS at 888 CalPERS (or 888-225-7377) if you have questions about your eligibility. If you were covered as a dependent through another health plan when you retired, you may be eligible to enroll in a CalPERS health plan. Contact CalPERS for more information. 22 CalPERS Member Publication | Local Safety If you have questions about your CalPERS health benefits and you are an active member, contact your Personnel Office or Health Benefits Officer. If you are a retiree, contact CalPERS at 888 CalPERS (or 888-225-7377). Making Changes to Your Health Plan After Retirement Once you retire, CalPERS becomes your Health Benefits Officer or Personnel Office. This means you can make most changes to your health enrollment by calling CalPERS at 888 CalPERS (or 888-225-7377). For some changes, we will ask you to send additional information to CalPERS, as indicated below. If you prefer, you can correspond with us in writing. Please include your (or the member’s) name, Social Security number or CalPERS ID, a copy of your Medicare card, and daytime phone number with area code. Be sure to include the following information when you request changes: Changing Your Address Include both the old and new address. Adding or Deleting a Dependent Include the dependent’s name, Social Security number, birth date, a copy of the birth certificate and Medicare card, if applicable, relationship to member, and reason you are adding or deleting the dependent. Adding a Spouse Due to Marriage Include a copy of the Marriage Certificate and your spouse’s date of birth and Social Security number with your request. Deleting a Spouse Due to Divorce Include a complete signed copy of the Divorce Decree with your request. Adding a Domestic Partner Submit a copy of the Declaration of Domestic Partnership that has been approved by the California Secretary of State’s Office, and the Social Security number and date of birth of your domestic partner. Deleting a Domestic Partner Submit a complete signed copy of the Termination of Domestic Partnership that you submitted to the California Secretary of State’s Office. Adding an Economically Dependent Child Complete an Affidavit of Eligibility form. Applying for a CalPERS-Sponsored Medicare Plan Upon your retirement and three months before you turn 65, CalPERS will send you a Certification of Medicare Status form to validate Medicare eligibility, ineligibility, or deferment. Complete and return this form to CalPERS along with a copy of your Medicare card or SSA documentation. 23888CalPERS (or 888-225-7377) | www.calpers.ca.gov Reciprocity this agreement between retirement systems does not apply to health vesting requirements. ADDItIonAL BeneFItS to ConSIDeR Reciprocity — other California Public Retirement Systems CalPERS has an agreement with many public retirement systems in California that allows movement from one public employer to another, within a specified time limit, without losing valuable retirement rights and related benefits. This is called “reciprocity.” There is no transfer of funds or service credit between retirement systems when you establish reciprocity. You become a member of both systems and are subject to the membership and benefit obligations and rights of each system. You must retire from each system separately, but it must be on the same date for all the benefits of reciprocity to apply. Once you have retired, you will receive separate retirement checks from each system. For more information, or to establish reciprocity, you should obtain the CalPERS publication A Guide to CalPERS When You Change Retirement Systems. Cost-of-Living Adjustment (CoLA) Cost-of-living adjustments are provided by law and are based on the Consumer Price Index for all United States cities. Cost-of-living adjustments are paid the second calendar year of your retirement and then every year thereafter. The standard cost-of-living adjustment is a maximum of 2 percent per year. If the Consumer Price Index registers a lower rate of inflation, you could receive a lower percentage. Public agency members like yourself may receive a 2 percent, 3 percent, 4 percent, or 5 percent cost-of-living adjustment, depending upon your employer’s contract. Inflation Protection (PPPA) Added protection against inflation is provided by the Purchasing Power Protection Account (PPPA), created to restore your monthly allowance to 80 percent of its original purchasing power. You will automatically receive PPPA supplemental payments on a monthly basis if your allowance falls below the 80 percent purchasing power level. 24 CalPERS Member Publication | Local Safety Sick Leave Credit Talk to your employer to find out if they have contracted for this benefit. At retirement, any unused sick leave you have may be converted to additional service credit. (The additional service will not change your age at retirement.) You will receive credit for unused sick leave certified by your employer up to the formula cap. It takes 250 days of sick leave to receive one year of service credit. For example: if your employer certified 120 days of sick leave, your additional service credit would be 0.480 (120 x .004= 0.480) of a year’s service credit. If your employer submits this information prior to CalPERS processing your retirement application, we will include the additional service credit in your initial retirement benefit. Otherwise, we will adjust your account to reflect a change in service credit at the time your employer submits it. To receive sick leave credit, your retirement date must be within 120 days of the date of separation from employment. Internal Revenue Code (IRC) Section 401 (a)(17) Contribution Limit If you first became a member of CalPERS on or after July 1, 1996, IRC section 401(a)(17) places limits on the amount of member contributions you can pay into CalPERS, a tax-qualified pension plan. This section applies to annual salaries (earnings) that exceed $250,000. The actual dollar limit is set each year by the Internal Revenue Service. This section does not limit or place a cap on the salary an employer can pay an employee. It does specify the highest salary on which member contributions can be paid into an employee’s CalPERS account. Your employer is responsible for monitoring when your salary reaches or exceeds this annual limit and for refunding any excess contributions. Each year CalPERS issues a Circular Letter to all employers announcing the IRC 401(a)(17) limit for the calendar year. At retirement, your highest average salary (final compensation amount) used to calculate your benefit will be section 401(a)(17) salary limit for that year. For example, if you became a member of CalPERS in August 1996, your annual salary is $300,000, and the 401 limit in the year you retire is $250,000, you will pay contributions on $250,000 of your salary and your retirement benefit calculation would use $250,000 as your highest final compensation. 25888CalPERS (or 888-225-7377) | www.calpers.ca.gov Internal Revenue Code (IRC) Section 415 (b) Retirement Benefit Limit IRC Section 415 places a dollar limit on the annual retirement benefit you can receive from CalPERS, a tax-qualified pension plan. This limit generally applies to retirement benefits of approximately $200,000 or more a year for an employee retiring at his or her Social Security normal retirement age of 62 through 65. Please note that the determination of whether your retirement benefit will be subject to this limit can only be made at retirement. This dollar limit is set each year by the Internal Revenue Service and is adjusted for several factors including inflation, age at retirement and after-tax contributions. If your retirement benefit must be limited under Section 415, you will be enrolled in the IRC 415(b) Replacement Benefit Plan, an employer- funded plan, if eligible. The CalPERS Replacement Benefit Plan provides a replacement benefit that will, to the extent possible, make up the amount your CalPERS benefit is limited. For additional information please see the IRC 415(b) Replacement Benefit Plan Fact Sheet on our website at www.calpers.ca.gov. 26 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2% at 50 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55, as well as showing the required years of service to reach your maximum percentage allowed by law. 2% @ 50 Benefit Formula Minimum Age for Retirement 50 Age at Retirement Benefit Factor Years Needed to Attain 90% 50 2.000%45.000 50¼2.035%44.226 50½2.070%43.478 50¾2.105%42.775 51 2.140%42.056 51¼2.175%41.379 51½2.210%40.724 51¾2.245%40.090 52 2.280%39.474 52¼2.315%38.877 52½2.350%38.298 52¾2.385%37.736 53 2.420%37.191 53¼2.455%36.660 53½2.490%36.145 53¾2.525%35.644 54 2.560%35.157 54¼2.595%34.683 54½2.630%34.221 54¾2.665%33.772 55 or older 2.700%33.334 502percent@ 27888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55+ Benefit Factor 2.000 2.140 2.280 2.420 2.560 2.700 Years of Service Percentage of Final Compensation 5 10.00 10.70 11.40 12.10 12.80 13.50 6 12.00 12.84 13.68 14.52 15.36 16.20 7 14.00 14.98 15.96 16.94 17.92 18.90 8 16.00 17.12 18.24 19.36 20.48 21.60 9 18.00 19.26 20.52 21.78 23.04 24.30 10 20.00 21.40 22.80 24.20 25.60 27.00 11 22.00 23.54 25.08 26.62 28.16 29.70 12 24.00 25.68 27.36 29.04 30.72 32.40 13 26.00 27.82 29.64 31.46 33.28 35.10 14 28.00 29.96 31.92 33.88 35.84 37.80 15 30.00 32.10 34.20 36.30 38.40 40.50 16 32.00 34.24 36.48 38.72 40.96 43.20 17 34.00 36.38 38.76 41.14 43.52 45.90 18 36.00 38.52 41.04 43.56 46.08 48.60 19 38.00 40.66 43.32 45.98 48.64 51.30 20 40.00 42.80 45.60 48.40 51.20 54.00 21 42.00 44.94 47.88 50.82 53.76 56.70 22 44.00 47.08 50.16 53.24 56.32 59.40 23 46.00 49.22 52.44 55.66 58.88 62.10 24 48.00 51.36 54.72 58.08 61.44 64.80 25 50.00 53.50 57.00 60.50 64.00 67.50 26 52.00 55.64 59.28 62.92 66.56 70.20 27 54.00 57.78 61.56 65.34 69.12 72.90 28 56.00 59.92 63.84 67.76 71.68 75.60 29 58.00 62.06 66.12 70.18 74.24 78.30 30 60.00 64.20 68.40 72.60 76.80 81.00 31 62.00 66.34 70.68 75.02 79.36 83.70 32 64.00 68.48 72.96 77.44 81.92 86.40 33 —70.62 75.24 79.86 84.48 89.10 34 ——77.52 82.28 87.04 90.00 max 35 ———84.70 89.60 90.00 max 36 ———— 90.00 max 90.00 max 37 ————— 90.00 max 502percent@ 28 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2% at 55 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55, as well as showing the required years of service to reach your maximum percentage allowed by law. 2% @ 55 Benefit Formula Minimum Age for Retirement 50 Age at Retirement Benefit Factor Years Needed to Attain 90% 50 1.426%63.114 50¼1.450%62.069 50½1.474%61.059 50¾1.498%60.080 51 1.522%59.133 51¼1.550%58.065 51½1.576%57.107 51¾1.602%56.180 52 1.628%55.283 52¼1.656%54.348 52½1.686%53.381 52¾1.714%52.509 53 1.742%51.665 53¼1.772%50.790 53½1.804%49.890 53¾1.834%49.074 54 1.866%48.232 54¼1.900%47.369 54½1.932%46.584 54¾1.966%45.779 55 or older 2.000%45.000 552percent@ 29888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55 Benefit Factor 1.426 1.522 1.628 1.742 1.866 2.000 Years of Service Percentage of Final Compensation 5 7.13 7.61 8.14 8.71 9.33 10.00 6 8.56 9.13 9.77 10.45 11.20 12.00 7 9.98 10.65 11.40 12.19 13.06 14.00 8 11.41 12.18 13.02 13.94 14.93 16.00 9 12.83 13.70 14.65 15.68 16.79 18.00 10 14.26 15.22 16.28 17.42 18.66 20.00 11 15.69 16.74 17.91 19.16 20.53 22.00 12 17.11 18.26 19.54 20.90 22.39 24.00 13 18.54 19.79 21.16 22.65 24.26 26.00 14 19.96 21.31 22.79 24.39 26.12 28.00 15 21.39 22.83 24.42 26.13 27.99 30.00 16 22.82 24.35 26.05 27.87 29.86 32.00 17 24.24 25.87 27.68 29.61 31.72 34.00 18 25.67 27.40 29.30 31.36 33.59 36.00 19 27.09 28.92 30.93 33.10 35.45 38.00 20 28.52 30.44 32.56 34.84 37.32 40.00 21 29.95 31.96 34.19 36.58 39.19 42.00 22 31.37 33.48 35.82 38.32 41.05 44.00 23 32.80 35.01 37.44 40.07 42.92 46.00 24 34.22 36.53 39.07 41.81 44.78 48.00 25 35.65 38.05 40.70 43.55 46.65 50.00 26 37.08 39.57 42.33 45.29 48.52 52.00 27 38.50 41.09 43.96 47.03 50.38 54.00 28 39.93 42.62 45.58 48.78 52.25 56.00 29 41.35 44.14 47.21 50.52 54.11 58.00 30 42.78 45.66 48.84 52.26 55.98 60.00 31 44.21 47.18 50.47 54.00 57.85 62.00 32 45.63 48.70 52.10 55.74 59.71 64.00 33 —50.23 53.72 57.49 61.58 66.00 34 ——55.35 59.23 63.44 68.00 35 ———60.97 65.31 70.00 36 ————67.18 72.00 37 —————74.00 38 —————76.00 39 —————78.00 40 —————80.00 41 —————82.00 42 —————84.00 43 —————86.00 44 —————88.00 45 —————90.00 552percent@ 30 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2% at 57 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 57, as well as showing the required years of service to reach your maximum percentage allowed by law. 2% @ 57 Benefit Formula Minimum Age for Retirement 50 Membership Date on or After January 1, 2013 Age Exact Year ¼ Year ½ Year ¾ Year 50 1.426 1.447 1.467 1.488 51 1.508 1.529 1.549 1.570 52 1.590 1.611 1.631 1.652 53 1.672 1.693 1.713 1.734 54 1.754 1.775 1.795 1.816 55 1.836 1.857 1.877 1.898 56 1.918 1.939 1.959 1.980 57 or older 2.000 2.000 2.000 2.000 572percent@ 31888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55 56 57+ Benefit Factor1.4261.5081.5901.6721.7541.8361.9182.000 Years of Service Percentage of Final Compensation 5 7.13 7.54 7.95 8.36 8.77 9.18 9.59 10.00 6 8.56 9.05 9.54 10.03 10.52 11.02 11.51 12.00 7 9.98 10.56 11.13 11.70 12.28 12.85 13.43 14.00 8 11.41 12.06 12.72 13.38 14.03 14.69 15.34 16.00 9 12.83 13.57 14.31 15.05 15.79 16.52 17.26 18.00 10 14.26 15.08 15.90 16.72 17.54 18.36 19.18 20.00 11 15.69 16.59 17.49 18.39 19.29 20.20 21.10 22.00 12 17.11 18.10 19.08 20.06 21.05 22.03 23.02 24.00 13 18.54 19.60 20.67 21.74 22.80 23.87 24.93 26.00 14 19.96 21.11 22.26 23.41 24.56 25.70 26.85 28.00 15 21.39 22.62 23.85 25.08 26.31 27.54 28.77 30.00 16 22.82 24.13 25.44 26.75 28.06 29.38 30.69 32.00 17 24.24 25.64 27.03 28.42 29.82 31.21 32.61 34.00 18 25.67 27.14 28.62 30.10 31.57 33.05 34.52 36.00 19 27.09 28.65 30.21 31.77 33.33 34.88 36.44 38.00 20 28.52 30.16 31.80 33.44 35.08 36.72 38.36 40.00 21 29.95 31.67 33.39 35.11 36.83 38.56 40.28 42.00 22 31.37 33.18 34.98 36.78 38.59 40.39 42.20 44.00 23 32.80 34.68 36.57 38.46 40.34 42.23 44.11 46.00 24 34.22 36.19 38.16 40.13 42.10 44.06 46.03 48.00 25 35.65 37.70 39.75 41.80 43.85 45.90 47.95 50.00 26 37.08 39.21 41.34 43.47 45.60 47.74 49.87 52.00 27 38.50 40.72 42.93 45.14 47.36 49.57 51.79 54.00 28 39.93 42.22 44.52 46.82 49.11 51.41 53.70 56.00 29 41.35 43.73 46.11 48.49 50.87 53.24 55.62 58.00 30 42.78 45.24 47.70 50.16 52.62 55.08 57.54 60.00 31 44.21 46.75 49.29 51.83 54.37 56.92 59.46 62.00 32 45.63 48.26 50.88 53.50 56.13 58.75 61.38 64.00 33 47.06 49.76 52.47 55.18 57.88 60.59 63.29 66.00 34 48.48 51.27 54.06 56.85 59.64 62.42 65.21 68.00 35 49.91 52.78 55.65 58.52 61.39 64.26 67.13 70.00 36 51.34 54.29 57.24 60.19 63.14 66.10 69.05 72.00 37 52.76 55.80 58.83 61.86 64.90 67.93 70.97 74.00 38 54.19 57.30 60.42 63.54 66.65 69.77 72.88 76.00 39 55.61 58.81 62.01 65.21 68.41 71.60 74.80 78.00 40 57.04 60.32 63.60 66.88 70.16 73.44 76.72 80.00 572percent@ 32 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2.5% at 55 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55, as well as showing the required years of service to reach your maximum percentage allowed by law. 2.5% @ 55 Benefit Formula Minimum Age for Retirement 50 Age at Retirement Benefit Factor Years Needed to Attain 90% 50 2.000%45.000 50¼2.025%44.445 50½2.050%43.903 50¾2.075%43.375 51 2.100%42.858 51¼2.125%42.353 51½2.150%41.861 51¾2.175%41.380 52 2.200%40.910 52¼2.225%40.450 52½2.250%40.000 52¾2.275%39.561 53 2.300%39.131 53¼2.325%38.710 53½2.350%38.298 53¾2.375%37.895 54 2.400%37.500 54¼2.425%37.114 54½2.450%36.735 54¾2.475%36.364 55 or older 2.500%36.000 55percent@52. 33888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55+ Benefit Factor 2.000 2.100 2.200 2.300 2.400 2.500 Years of Service Percentage of Final Compensation 5 10.00 10.50 11.00 11.50 12.00 12.50 6 12.00 12.60 13.20 13.80 14.40 15.00 7 14.00 14.70 15.40 16.10 16.80 17.50 8 16.00 16.80 17.60 18.40 19.20 20.00 9 18.00 18.90 19.80 20.70 21.60 22.50 10 20.00 21.00 22.00 23.00 24.00 25.00 11 22.00 23.10 24.20 25.30 26.40 27.50 12 24.00 25.20 26.40 27.60 28.80 30.00 13 26.00 27.30 28.60 29.90 31.20 32.50 14 28.00 29.40 30.80 32.20 33.60 35.00 15 30.00 31.50 33.00 34.50 36.00 37.50 16 32.00 33.60 35.20 36.80 38.40 40.00 17 34.00 35.70 37.40 39.10 40.80 42.50 18 36.00 37.80 39.60 41.40 43.20 45.00 19 38.00 39.90 41.80 43.70 45.60 47.50 20 40.00 42.00 44.00 46.00 48.00 50.00 21 42.00 44.10 46.20 48.30 50.40 52.50 22 44.00 46.20 48.40 50.60 52.80 55.00 23 46.00 48.30 50.60 52.90 55.20 57.50 24 48.00 50.40 52.80 55.20 57.60 60.00 25 50.00 52.50 55.00 57.50 60.00 62.50 26 52.00 54.60 57.20 59.80 62.40 65.00 27 54.00 56.70 59.40 62.10 64.80 67.50 28 56.00 58.80 61.60 64.40 67.20 70.00 29 58.00 60.90 63.80 66.70 69.60 72.50 30 60.00 63.00 66.00 69.00 72.00 75.00 31 62.00 65.10 68.20 71.30 74.40 77.50 32 64.00 67.20 70.40 73.60 76.80 80.00 33 —69.30 72.60 75.90 79.20 82.50 34 ——74.80 78.20 81.60 85.00 35 ———80.50 84.00 87.50 36 ————86.40 90.00 max 37 ————— 90.00 max 55percent@52. 34 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2.5% at 57 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 57, as well as showing the required years of service to reach your maximum percentage allowed by law. 2.5% @ 57 Benefit Formula Minimum Age for Retirement 50 Membership date on or after January 1, 2013 Age Exact Year ¼ Year ½ Year ¾ Year 50 2.000 2.018 2.036 2.054 51 2.071 2.089 2.107 2.125 52 2.143 2.161 2.179 2.196 53 2.214 2.232 2.250 2.268 54 2.286 2.304 2.321 2.339 55 2.357 2.375 2.393 2.411 56 2.429 2.446 2.464 2.482 57 or older 2.500 2.500 2.500 2.500 57percent@52. 35888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55 56 57+ Benefit Factor 2.000 2.071 2.143 2.214 2.286 2.357 2.429 2.500 Years of Service Percentage of Final Compensation 5 10.00 10.36 10.72 11.07 11.43 11.79 12.15 12.50 6 12.00 12.43 12.86 13.28 13.72 14.14 14.57 15.00 7 14.00 14.50 15.00 15.50 16.00 16.50 17.00 17.50 8 16.00 16.57 17.14 17.71 18.29 18.86 19.43 20.00 9 18.00 18.64 19.29 19.93 20.57 21.21 21.86 22.50 10 20.00 20.71 21.43 22.14 22.86 23.57 24.29 25.00 11 22.00 22.78 23.57 24.35 25.15 25.93 26.72 27.50 12 24.00 24.85 25.72 26.57 27.43 28.28 29.15 30.00 13 26.00 26.92 27.86 28.78 29.72 30.64 31.58 32.50 14 28.00 28.99 30.00 31.00 32.00 33.00 34.01 35.00 15 30.00 31.07 32.15 33.21 34.29 35.36 36.44 37.50 16 32.00 33.14 34.29 35.42 36.58 37.71 38.86 40.00 17 34.00 35.21 36.43 37.64 38.86 40.07 41.29 42.50 18 36.00 37.28 38.57 39.85 41.15 42.43 43.72 45.00 19 38.00 39.35 40.72 42.07 43.43 44.78 46.15 47.50 20 40.00 41.42 42.86 44.28 45.72 47.14 48.58 50.00 21 42.00 43.49 45.00 46.49 48.01 49.50 51.01 52.50 22 44.00 45.56 47.15 48.71 50.29 51.85 53.44 55.00 23 46.00 47.63 49.29 50.92 52.58 54.21 55.87 57.50 24 48.00 49.70 51.43 53.14 54.86 56.57 58.30 60.00 25 50.00 51.78 53.58 55.35 57.15 58.93 60.73 62.50 26 52.00 53.85 55.72 57.56 59.44 61.28 63.15 65.00 27 54.00 55.92 57.86 59.78 61.72 63.64 65.58 67.50 28 56.00 57.99 60.00 61.99 64.01 66.00 68.01 70.00 29 58.00 60.06 62.15 64.21 66.29 68.35 70.44 72.50 30 60.00 62.13 64.29 66.42 68.58 70.71 72.87 75.00 31 62.00 64.20 66.43 68.63 70.87 73.07 75.30 77.50 32 64.00 66.27 68.58 70.85 73.15 75.42 77.73 80.00 33 66.00 68.34 70.72 73.06 75.44 77.78 80.16 82.50 34 68.00 70.41 72.86 75.28 77.72 80.14 82.59 85.00 35 70.00 72.49 75.01 77.49 80.01 82.50 85.02 87.50 36 72.00 74.56 77.15 79.70 82.30 84.85 87.44 90.00 37 74.00 76.63 79.29 81.92 84.58 87.21 89.87 92.50 38 76.00 78.70 81.43 84.13 86.87 89.57 92.30 95.00 39 78.00 80.77 83.58 86.35 89.15 91.92 94.73 97.50 40 80.00 82.84 85.72 88.56 91.44 94.28 97.16 100.00 57percent@52. 36 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 2.7% at 57 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 57, as well as showing the required years of service to reach your maximum percentage allowed by law. 2.7% @ 57 Benefit Formula Minimum Age for Retirement 50 Membership date on or after January 1, 2013 Age Exact Year ¼ Year ½ Year ¾ Year 50 2.000 2.025 2.050 2.075 51 2.100 2.125 2.150 2.175 52 2.200 2.225 2.250 2.275 53 2.300 2.325 2.350 2.375 54 2.400 2.425 2.450 2.475 55 2.500 2.525 2.550 2.575 56 2.600 2.625 2.650 2.675 57 or older 2.700 2.700 2.700 2.700 57percent@72. 37888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55 56 57+ Benefit Factor 2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 Years of Service Percentage of Final Compensation 5 10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 6 12.00 12.60 13.20 13.80 14.40 15.00 15.60 16.20 7 14.00 14.70 15.40 16.10 16.80 17.50 18.20 18.90 8 16.00 16.80 17.60 18.40 19.20 20.00 20.80 21.60 9 18.00 18.90 19.80 20.70 21.60 22.50 23.40 24.30 10 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 11 22.00 23.10 24.20 25.30 26.40 27.50 28.60 29.70 12 24.00 25.20 26.40 27.60 28.80 30.00 31.20 32.40 13 26.00 27.30 28.60 29.90 31.20 32.50 33.80 35.10 14 28.00 29.40 30.80 32.20 33.60 35.00 36.40 37.80 15 30.00 31.50 33.00 34.50 36.00 37.50 39.00 40.50 16 32.00 33.60 35.20 36.80 38.40 40.00 41.60 43.20 17 34.00 35.70 37.40 39.10 40.80 42.50 44.20 45.90 18 36.00 37.80 39.60 41.40 43.20 45.00 46.80 48.60 19 38.00 39.90 41.80 43.70 45.60 47.50 49.40 51.30 20 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 21 42.00 44.10 46.20 48.30 50.40 52.50 54.60 56.70 22 44.00 46.20 48.40 50.60 52.80 55.00 57.20 59.40 23 46.00 48.30 50.60 52.90 55.20 57.50 59.80 62.10 24 48.00 50.40 52.80 55.20 57.60 60.00 62.40 64.80 25 50.00 52.50 55.00 57.50 60.00 62.50 65.00 67.50 26 52.00 54.60 57.20 59.80 62.40 65.00 67.60 70.20 27 54.00 56.70 59.40 62.10 64.80 67.50 70.20 72.90 28 56.00 58.80 61.60 64.40 67.20 70.00 72.80 75.60 29 58.00 60.90 63.80 66.70 69.60 72.50 75.40 78.30 30 60.00 63.00 66.00 69.00 72.00 75.00 78.00 81.00 31 62.00 65.10 68.20 71.30 74.40 77.50 80.60 83.70 32 64.00 67.20 70.40 73.60 76.80 80.00 83.20 86.40 33 66.00 69.30 72.60 75.90 79.20 82.50 85.80 89.10 34 68.00 71.40 74.80 78.20 81.60 85.00 88.40 91.80 35 70.00 73.50 77.00 80.50 84.00 87.50 91.00 94.50 36 72.00 75.60 79.20 82.80 86.40 90.00 93.60 97.20 37 74.00 77.70 81.40 85.10 88.80 92.50 96.20 99.90 38 76.00 79.80 83.60 87.40 91.20 95.00 98.80 102.60 39 78.00 81.90 85.80 89.70 93.60 97.50 101.40 105.30 40 80.00 84.00 88.00 92.00 96.00 100.00 104.00 108.00 57percent@72. 38 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 3% at 50 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55, as well as showing the required years of service to reach your maximum percentage allowed by law. 3% @ 50 Benefit Formula Minimum Age for Retirement 50 Age at Retirement Benefit Factor Years Needed to Attain 90% 50 3.000%30.000 50¼3.000%30.000 50½3.000%30.000 50¾3.000%30.000 51 3.000%30.000 51¼3.000%30.000 51½3.000%30.000 51¾3.000%30.000 52 3.000%30.000 52¼3.000%30.000 52½3.000%30.000 52¾3.000%30.000 53 3.000%30.000 53¼3.000%30.000 53½3.000%30.000 53¾3.000%30.000 54 3.000%30.000 54¼3.000%30.000 54½3.000%30.000 54¾3.000%30.000 55 or older 3.000%30.000 503percent@ 39888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55+ Benefit Factor 3.000 3.000 3.000 3.000 3.000 3.000 Years of Service Percentage of Final Compensation 5 15.00 15.00 15.00 15.00 15.00 15.00 6 18.00 18.00 18.00 18.00 18.00 18.00 7 21.00 21.00 21.00 21.00 21.00 21.00 8 24.00 24.00 24.00 24.00 24.00 24.00 9 27.00 27.00 27.00 27.00 27.00 27.00 10 30.00 30.00 30.00 30.00 30.00 30.00 11 33.00 33.00 33.00 33.00 33.00 33.00 12 36.00 36.00 36.00 36.00 36.00 36.00 13 39.00 39.00 39.00 39.00 39.00 39.00 14 42.00 42.00 42.00 42.00 42.00 42.00 15 45.00 45.00 45.00 45.00 45.00 45.00 16 48.00 48.00 48.00 48.00 48.00 48.00 17 51.00 51.00 51.00 51.00 51.00 51.00 18 54.00 54.00 54.00 54.00 54.00 54.00 19 57.00 57.00 57.00 57.00 57.00 57.00 20 60.00 60.00 60.00 60.00 60.00 60.00 21 63.00 63.00 63.00 63.00 63.00 63.00 22 66.00 66.00 66.00 66.00 66.00 66.00 23 69.00 69.00 69.00 69.00 69.00 69.00 24 72.00 72.00 72.00 72.00 72.00 72.00 25 75.00 75.00 75.00 75.00 75.00 75.00 26 78.00 78.00 78.00 78.00 78.00 78.00 27 81.00 81.00 81.00 81.00 81.00 81.00 28 84.00 84.00 84.00 84.00 84.00 84.00 29 87.00 87.00 87.00 87.00 87.00 87.00 30 90.00 max 90.00 max 90.00 max 90.00 max 90.00 max 90.00 max 503percent@ 40 CalPERS Member Publication | Local Safety RetIReMent FoRMULAS AnD BeneFIt FACtoRS 3% at 55 Benefit Factors The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55, as well as showing the required years of service to reach your maximum percentage allowed by law. 3% @ 55 Benefit Formula Minimum Age for Retirement 50 Age at Retirement Benefit Factor Years Needed to Attain 90% 50 2.400%37.500 50¼2.430%37.037 50½2.460%36.586 50¾2.490%36.145 51 2.520%35.715 51¼2.550%35.295 51½2.580%34.884 51¾2.610%34.483 52 2.640%34.091 52¼2.670%33.708 52½2.700%33.334 52¾2.730%32.967 53 2.760%32.609 53¼2.790%32.258 53½2.820%31.915 53¾2.850%31.579 54 2.880%31.250 54¼2.910%30.928 54½2.940%30.613 54¾2.970%30.303 55 or older 3.000%30.000 553percent@ 41888CalPERS (or 888-225-7377) | www.calpers.ca.gov PeRCentAGe oF FInAL CoMPenSAtIon Age 50 51 52 53 54 55+ Benefit Factor 2.400 2.520 2.640 2.760 2.880 3.000 Years of Service Percentage of Final Compensation 5 12.00 12.60 13.20 13.80 14.40 15.00 6 14.40 15.12 15.84 16.56 17.28 18.00 7 16.80 17.64 18.48 19.32 20.16 21.00 8 19.20 20.16 21.12 22.08 23.04 24.00 9 21.60 22.68 23.76 24.84 25.92 27.00 10 24.00 25.20 26.40 27.60 28.80 30.00 11 26.40 27.72 29.04 30.36 31.68 33.00 12 28.80 30.24 31.68 33.12 34.56 36.00 13 31.20 32.76 34.32 35.88 37.44 39.00 14 33.60 35.28 36.96 38.64 40.32 42.00 15 36.00 37.80 39.60 41.40 43.20 45.00 16 38.40 40.32 42.24 44.16 46.08 48.00 17 40.80 42.84 44.88 46.92 48.96 51.00 18 43.20 45.36 47.52 49.68 51.84 54.00 19 45.60 47.88 50.16 52.44 54.72 57.00 20 48.00 50.40 52.80 55.20 57.60 60.00 21 50.40 52.92 55.44 57.96 60.48 63.00 22 52.80 55.44 58.08 60.72 63.36 66.00 23 55.20 57.96 60.72 63.48 66.24 69.00 24 57.60 60.48 63.36 66.24 69.12 72.00 25 60.00 63.00 66.00 69.00 72.00 75.00 26 62.40 65.52 68.64 71.76 74.88 78.00 27 64.80 68.04 71.28 74.52 77.76 81.00 28 67.20 70.56 73.92 77.28 80.64 84.00 29 69.60 73.08 76.56 80.04 83.52 87.00 30 72.00 75.60 79.20 82.80 86.40 90.00 max 31 74.40 78.12 81.84 85.56 89.28 90.00 max 32 76.80 80.64 84.48 88.32 90.00 max 90.00 max 33 —83.16 87.12 90.00 max 90.00 max 90.00 max 34 ——89.76 90.00 max 90.00 max 90.00 max 35 ——— 90.00 max 90.00 max 90.00 max 553percent@ 42 CalPERS Member Publication | Local Safety BeCoMe A MoRe InFoRMeD MeMBeR CalPeRS on-Line Visit our website at www.calpers.ca.gov for more information on all your benefits and programs. Reaching Us By Phone Call us toll free at 888 CalPERS (or 888-225-7377). Monday through Friday, 8:00 a.m. to 5:00 p.m. TTY: (877) 249-7442 my|CalPeRS Stay informed and be in control of the information you want and need — with my|CalPERS! my|CalPERS is the personalized and secure website that provides all your retirement, health, and financial information in one place. Take advantage of the convenience of 24/7 access to learn more about CalPERS programs and services that are right for you in your career stage. With my|CalPERS, you can: Get quick and easy access to all your account information. Manage and update your contact information and online account profile. Access information about your health plan and family members enrolled in your plan. See all the information you need to make health plan decisions. View, print, and save online statements. Go “green” by opting out of receiving future statements by mail. Use financial planning tools to calculate your retirement benefit estimate or estimate your service credit cost. Keep informed with CalPERS news so you don’t miss a thing. CalPeRS education Center my|CalPERS is your gateway to the CalPERS Education Center. Whether you’re in the early stages of your career, starting to plan your retirement, or getting ready to retire, visit the CalPERS Education Center to: Take online classes that help you make important decisions about your CalPERS benefits and your future. Register for instructor-led classes at a location near you. Download class materials and access information about your current and past classes. Browse our retirement fair schedule. Make a personal appointment with a retirement counselor. Log in today at my.calpers.ca.gov. 43888CalPERS (or 888-225-7377) | www.calpers.ca.gov visit Your nearest CalPeRS Regional office Fresno Regional Office 10 River Park Place East, Suite 230 Fresno, CA 93720 Glendale Regional Office Glendale Plaza 655 North Central Avenue, Suite 1400 Glendale, CA 91203 Orange Regional Office 500 North State College Boulevard, Suite 750 Orange, CA 92868 Sacramento Regional Office Lincoln Plaza East 400 Q Street, Room E1820 Sacramento, CA 95811 San Bernardino Regional Office 650 East Hospitality Lane, Suite 330 San Bernardino, CA 92408 San Diego Regional Office 7676 Hazard Center Drive, Suite 350 San Diego, CA 92108 San Jose Regional Office 181 Metro Drive, Suite 520 San Jose, CA 95110 Walnut Creek Regional Office 1340 Treat Blvd., Suite 200 Walnut Creek, CA 94597 Visit the CalPERS website for directions to your local office. Regional Office hours are Monday to Friday, 8:00 a.m. to 5:00 p.m. 44 CalPERS Member Publication | Local Safety GLoSSARY This glossary can assist you in understanding some of the words and phrases you may encounter when dealing with CalPERS. Benefit Factor The percentage of pay you are entitled to for each year of CalPERS-covered service, and is determined by your age at retirement and your retirement formula. Beneficiary A person designated by the member to receive a benefit after the death of a member or other benefit recipient. (Also, see survivor, which has a different definition. Your beneficiary and survivor may or may not be the same person.) Break in Service A break in service begins when you permanently separate from CalPERS- covered employment. A leave of absence, such as maternity leave, military leave, etc. is not considered a break in service. COBRA The Consolidated Omnibus Budget Reconciliation Act (COBRA) is federal legislation that allows you or a family member to continue health plan enrollment when there is an involuntary loss of coverage. A loss of coverage could include separation from employment, a dependent reaching age 26, effective January 1, 2011), or divorce or legal separation. Dependent Those family members who meet the specific eligibility criteria for coverage in the CalPERS Health Program. This includes your children up to age 26 who may or may not be dependent upon you for support. Domestic Partner Registered domestic partners legally recognized by California law will be qualified for benefits and rights that apply to a spouse. Disability An inability to substantially perform the duties of your job due to illness or injury, which is determined to be permanent or of an extended and uncertain duration. Final Compensation Your final compensation is the highest average pay rate and special compensation during any consecutive one-year or three-year period. Which compensation period we use depends on your membership date and employer’s contract with CalPERS. If you are not sure, ask your Personnel Office. We use your full-time pay rate, not your earnings. If you work part-time, we will use your full-time equivalent pay rate to determine your final compensation. my|CalPERS automatically finds and uses the highest compensation period during your employment with CalPERS. 45888CalPERS (or 888-225-7377) | www.calpers.ca.gov Fiscal Year CalPERS operates on a fiscal year calendar, which is July 1 to June 30 each year. Health Insurance Portability & Accountability Act (HIPAA) This federal law protects health insurance coverage for workers and their families when they change or lose their jobs. It also includes provisions providing national standards to protect the privacy of personal health information. Member An employee who qualifies for membership in CalPERS and whose employer has become obligated to pay contributions into the Retirement Fund. Open Enrollment Period A period of time determined by the CalPERS Board when you can enroll or change health plans, or add eligible family members who are not currently enrolled in the CalPERS Health Program. PEMHCA Public Employees’ Medical and Hospital Care Act. Government Code 22751 et seq is the body of State law that governs the CalPERS Health Benefits Program. Reciprocal Agreement An agreement between CalPERS and many public retirement systems within California that allows movement from one public employer to another, within a specified time limit, without losing valuable retirement rights and benefits. Service Credit Your credited years of employment with a CalPERS employer. This amount of service is credited to your CalPERS account and used in the formula to determine your retirement benefits. In some cases, other types of service credit e.g., sick leave and service credit purchases) can be credited to your retirement account and used to enhance your retirement benefits. Special Compensation Additional income you might receive for uniform allowance, holiday pay, longevity pay, etc., and is reported separately from your base pay. Supplement to Original Medicare Plan For CalPERS members in Social Security due to age (over 65) or Social Security-approved disability, Medicare becomes the primary payer of claims and the supplemental CalPERS health plan covers any costs not paid by Medicare if you have CalPERS health benefits coverage in retirement Covered under PEMHCA). Survivor A family member defined by law as eligible to receive specific benefits upon a member’s death. 46 CalPERS Member Publication | Local Safety InFoRMAtIon PRACtICeS StAteMent The Information Practices Act of 1977 and the Federal Privacy Act require the California Public Employees’ Retirement System to provide the following information to individuals who are asked to supply information. The information requested is collected pursuant to the Government Code Sections 20000, et seq.) and will be used for administration of the CalPERS Board’s duties under the California Public Employees’ Retirement Law, the Social Security Act, and the Public Employees’ Medical and Hospital Care Act, as the case may be. Submission of the requested information is mandatory. Failure to supply the information may result in the System being unable to perform its function regarding your status and eligibility for benefits. Portions of this information may be transferred to State and public agency employers, State Attorney General, Office of the State Controller, Teale Data Center, Franchise Tax Board, Internal Revenue Service, Workers’ Compensation Appeals Board, State Compensation Insurance Fund, County District Attorneys, Social Security Administration, beneficiaries of deceased members, physicians, insurance carriers, and various vendors who prepare the microfiche or microfilm for CalPERS. Disclosure to the aforementioned entities is done in strict accordance with current statutes regarding confidentiality. You have the right to review your membership file maintained by the System. For questions concerning your rights under the Information Practices Act of 1977, please contact the Information Practices Act Coordinator, CalPERS, 400 Q Street, P.O. Box 942702, Sacramento, CA 94229-2702. While reading this material, remember that we are governed by the Public Employees’ Retirement Law and the Alternate Retirement Program provisions in the Government Code, together referred to as the Retirement Law. The statements in this publication are general. The Retirement Law is complex and subject to change. If there is a conflict between the law and this publication, any decisions will be based on the law and not this publication. If you have a question that is not answered by this general description, you may make a written request for advice regarding your specific situation directly to CalPERS. 47888CalPERS (or 888-225-7377) | www.calpers.ca.gov SPeCIAL tHAnkS We thank the Amador County Sheriffs Department, Jackson Police Department, Sacramento Metro Fire, and the Sacramento Police Department Mounted Unit for their cooperation to make the photos for this book possible. Amador County Sheriffs Department Brian Gillaspie, page 13 Jackson Police Department Todd Breedlove, page 18 Michael Collins, page 3 Sacramento Metro Fire Xavier L. Brown, page 4 Tom Chin, page 9 Troy Gillam, front cover Michael Johnson, page 1 James Mandes, back cover, center photo Shani Richeson, page 16 Adam Russell, front cover Jay Skidmore, page 14 Darell Suemram, front cover Curt Wick, page 40 Walt White, front cover Sacramento Police Department Mounted Unit Jeff Babbage pictured with “George”, page 7 Lo Anne Holmsen pictured with “Ted”, front cover, center photo William Lyons pictured with “Oak”, page 22 California Public Employees’ Retirement System 400 Q Street P.o. Box 942701 Sacramento, CA 94229-2701 888 CalPERS (or 888-225-7377) www.calpers.ca.gov PUB 9 December 2012 Printed at CalPERS 2013.1.1