Service & Disability Retirement

You, or someone on your behalf (such as your employer or Power of Attorney), can apply for disability and industrial disability retirement. You don't need to wait until your condition is "permanent and stationary" under Workers' Compensation to apply.

To apply, read Disability Retirement Election Application (PUB 35) (PDF). The publication includes the forms needed to submit a complete application package, as well as the Retirement Allowance Estimate Request (PDF). We recommend you request an estimate prior to applying for disability or industrial disability retirement.

You can also take the online Member Education class, Completing Your Disability Retirement Application, which will teach you how to complete the Disability Retirement Application forms and submit a complete application package.

After we receive your application, we'll send you an acknowledgment letter letting you know we have received it. When we receive all of the required documentation and forms, we will begin the process of reviewing your file to see whether the information is current and complete, and if a determination can be made. If not, we may need to request additional information or an independent medical examination.

Generally, we can review a disability or industrial disability retirement application within three months after we receive all the required information. However, if we need additional information, the determination process can take longer. If your application is approved, you will be retired and begin receiving a monthly benefit payment from CalPERS usually within four to six weeks.

CalPERS can expedite retirement processing for those who are facing a terminal illness. If this is your case, contact us or your employer immediately to discuss an emergency retirement.

The Alternate Retirement Program (ARP) is administered by the California Department of Human Resources (CalHR) and is for new, first-time state miscellaneous and industrial employees hired between August 11, 2004, and June 30, 2013.

There are several important milestones in the first four years of state miscellaneous industrial employment that will transition you into full CalPERS membership.

First 24 Months: ARP Period

• You don't receive CalPERS retirement service credit.
• Your retirement contributions go into your ARP account managed by CalHR.
• Your time worked counts toward retirement and health benefit vesting.

Month 25 Forward

• You begin to earn CalPERS retirement service credit.
• You move from ARP into CalPERS First Tier membership.
• Your ARP funds remain at CalHR.
• Your retirement contributions begin to go to CalPERS.

Months 47-49: Decision Time

You'll receive a notice of your upcoming ARP election period in the 45^th month following your ARP enrollment date. You'll have three options regarding what to do with your ARP funds once your 47^th month arrives:

• Option 1 – Receive CalPERS Service Credit
  Transfer your ARP funds to CalPERS and receive retirement service credit for the actual amount of time you worked at no additional cost. More service credit increases your pension benefit allowances.
• Option 2 – Distribution of Funds
  Receive a lump sum distribution. No service credit is earned for your ARP period; however, your time worked will count toward your retirement and health vesting.
• Option 3 – Transfer to Savings Plus 401(k) at CalHR
  No service credit is earned for your ARP period; however, your time worked will count toward your retirement and health vesting.

If you select Option 2 or 3 during the ARP election period, or take no action, you can purchase your ARP time with CalPERS at a future date, as long as you meet the eligibility requirements. However, the cost to you'll be substantially higher than the amount in your ARP account. If you wait to purchase your ARP time at a future date, the law requires you to pay the entire present value cost of the service credit, which includes member and employer contribution amounts and is based on your highest pay rate and other actuarial factors.

To help you make important decisions that can affect your future CalPERS retirement benefit:

• Contact your personnel office.
• Refer to our Alternate Retirement Program (PUB 10) (PDF).
• Visit CalHR.

Transitioning from ARP to Full CalPERS Membership

At the end of your 2-year (24-month) ARP period, you'll begin earning CalPERS service credit and receiving an Annual Member Statement each fall. This statement provides a record of your CalPERS contributions, interest, and service credit. Your service while in ARP will not be included in the total until you either:

• Elect to transfer your ARP funds to CalPERS during your ARP election period (47^th to 49^th month following your ARP enrollment date)
• Purchase ARP service credit any time after your ARP election period but before retirement

To view your Annual Member Statement, you'll need to log in to myCalPERS.

If you separate from CalPERS-covered employment, refund your ARP contributions, and return to CalPERS contracted employment; you can elect to purchase your ARP service. The cost for purchasing ARP service credit is calculated at present value. Present value cost includes member and employer contribution amounts and is based on your highest pay rate and other actuarial factors.

Membership Type

As you transition into CalPERS, you'll be either a state miscellaneous or industrial First Tier retirement plan member, based on your job classification (contact your personnel office for more information). However, after your 24^th month of employment, you should receive notice from your personnel office that you're eligible to move to the state miscellaneous or industrial Second Tier plan. You'll have 180 days to make this election.

Effective July 1, 2013, Second Tier members started paying 1.5 percent of earnings in monthly member contributions. This contribution rate will be adjusted annually. Since members in the Second Tier plan make minimal contributions, this plan offers a reduced level of benefits at retirement. Be sure to carefully review the information you're provided before making your decision.

Health Coverage

If you're currently a member of the CalPERS Health Program, you must meet specific requirements to continue your health insurance coverage into retirement, or maintain the right to re-enroll in the future after retirement.

To continue your CalPERS health benefit coverage after retirement, you must meet both of the criteria below:

• Be enrolled in (or eligible for) a CalPERS health plan upon separation from employment, either in your own name or as a dependent
• Retire within 120 days of your separation from employment

If you don't meet both requirements before you retire, you'll lose all future rights to be in the CalPERS Health Program. If your family members are included in your CalPERS health plan at the time of your death, their enrollment will continue automatically if they're eligible for and receive a monthly allowance.

Public Agency or School Members

If your employer doesn't contract with CalPERS for health benefits, contact your employer to determine if your benefits will continue.

Dental Coverage (State Members Only)

To continue dental coverage into retirement, you must:

• Be enrolled in (or eligible for) a state-sponsored dental plan on the date of your separation from employment
• Retire within 120 days of your separation

Long-Term Care

If you're enrolled in CalPERS Long-Term Care and have premiums deducted from your paycheck, you'll need to call (800) 982-1775 before you retire to find out how to continue your premium deductions.

Other Deduction Payments

Many types of payments can be deducted from your monthly retirement check, such as car payments, retiree association fees, charitable contributions, savings account deposits, etc. To initiate or add these deductions after you retire, contact the provider and complete their direct authorization deduction request. The request then needs to be forwarded to CalPERS.

A "Golden Handshake" is an early retirement incentive that can be offered by your employer. In order to offer a Golden Handshake, there must be an impending layoff and your employer can demonstrate that enough savings can be realized to pay for the Golden Handshake benefits. Your employer must contract with CalPERS and pay the cost for this early retirement incentive.

Current law allows for a Golden Handshake to provide an additional two years of service credit. To be eligible, you must retire within the establish time period (usually between 60 to 120 days). If you retire under a Golden Handshake and then receive unemployment benefits or reinstate from retirement, you'll lose this benefit.

Government Employees

Under current law, there are several different provisions the state can use to offer a Golden Handshake, depending on the branch of government.

• Judicial - The Chief Justice must announce an offering of the benefit to judicial support staff.
• Legislature - Each house of the Legislature must make a resolution to provide this benefit to legislative support staff.
• State agencies, including California State University - The Governor must sign an Executive Order to provide this benefit to state employees.

If you were awarded a portion of your former spouse/domestic partner's CalPERS pension, and the community property court order provided you your own separate CalPERS account with service credit and contributions, you're called a "nonmember." You may collect a monthly retirement benefit, or you may request to refund or roll over your contributions and interest at any time, if eligible (e.g., if you have Second Tier service only you may not have contributions on your account).

If the community property court order provides for a future benefit, you'll begin receiving a monthly allowance once your former spouse/domestic partner retires. You're called a "community property payee."

Refer to your filed community property court order, or the letter CalPERS mailed to you after the community property resolution, to determine what type of community property interest you were awarded. You can also contact us directly.

Benefits & Resources

As a nonmember, you have many of the same resources available as a regular member. You can:

• Create an online myCalPERS account.
• Make an appointment at a Regional Office (identify yourself as a nonmember).
• Register for online and/or instructor-led retirement courses and webinars through our Education Center.
• Request two CalPERS-generated estimates of your non-member retirement allowance within a 12-month period (must be within one year of the requested retirement date).
  • Review the Nonmember Retirement Allowance Estimate Request (PDF) or contact us to have the form mailed to you.
• In limited circumstances, purchase more service credit than what was awarded in the community property court order (e.g., your ex-spouse took a refund of service and contributions during the marriage period, or your ex-spouse elected to convert from the second tier formula to the first tier formula). Contact us for more information.

However, nonmembers:

• Are not eligible for CalPERS health or reciprocal benefits
• Can't apply for retirement online and need to submit a hardcopy Nonmember Service Retirement Election Application (PUB 44) (PDF).
• Can't retire early if your former spouse/domestic partner retired early on a disability retirement (you both must reach minimum service retirement age before you can apply for retirement)

Collecting Retirement

If you were awarded your own CalPERS nonmember account, you're eligible to retire as soon as both you and your former spouse/domestic partner reach minimum retirement age. Your former spouse/domestic partner must've been vested for service retirement as of your dissolution date.

If your former spouse/domestic partner passes away before meeting minimum service retirement age, you'll become ineligible to receive a monthly retirement benefit. You may refund or roll over the contributions and interest, if any, awarded to you at any time, or you may have an opportunity to amend the original court order. Contact us for more information.

If you're eligible to retire, review Completing Your Nonmember Service Retirement Election Application (PUB 44) (PDF) to get started.

• The minimum retirement age is 50, 52, or 55 years depending on the retirement formula associated to the service credit on your account.
• Your monthly benefit may or may not increase if you wait to retire. Your benefit is calculated using the retirement formula associated to the service you were awarded and is specific to your former spouse's/domestic partner's membership classification.
  • You can find your retirement formula and membership classification by logging in to myCalPERS. You can also contact us and we can provide the information to you.
  • Retirement formula examples include 3% @ 50 (State Safety Benefits) and 2% @ 55 (Local Miscellaneous Benefits).
  • Review the member forms and publications specific to your classification to help you understand how your retirement benefit is calculated.
• If you have a nonmember account and are also a CalPERS member, but are not ready to retire from your job, you can retire on your nonmember account only. If you're minimum service retirement age and your former spouse/domestic partner meets both the minimum age and minimum service retirement eligibility requirements, you can apply for retirement on your nonmember account and begin collecting a monthly retirement benefit.

Important Retirement Dates

• If you submit your application more than nine months after your requested retirement date, the law says your retirement date will be the first day of the month in which CalPERS receives your application.
• The effective date of your retirement is the date you designate on the application, or the day following the court-filed date of the Stipulated Domestic Relations Order, whichever is later.

If you worked for a federal, state, or local government where you didn't pay Social Security taxes, the pension you receive from that agency could reduce your Social Security benefits. Visit the Social Security & Your CalPERS Pension page to see the relationship between the two benefits.

There are two laws that may impact benefits:

• The Government Pension Offset (GPO) applies only if you receive a government pension and are eligible for Social Security benefits as a spouse or widow.
• The Windfall Elimination Provision (WEP) affects how your retirement or disability benefits are figured if you receive a pension from work not covered by Social Security.

Through the CalPERS Special Power of Attorney, you can appoint a representative(s) to make retirement-related decisions on your behalf, should you become incapacitated. The CalPERS special power of attorney grants authority specifically for CalPERS retirement issues. For this reason, we recommend filing a Special Power of Attorney form (PDF), regardless of whether you already have a power of attorney set up through another resource.

Unless you submit an election for tax withholding, CalPERS is required to withhold taxes from your monthly allowance based on the tax tables for a married person with three allowances.

By law, all CalPERS retirees with taxable allowances are required to select one of the three withholding choices:

• A specific dollar amount withheld (state withholding only)
• No taxes withheld
• Taxes withheld according to the tax tables, based on marital or head of household status and numbers of allowances (you may also add a specific dollar amount to this election)

If you choose one of the tax tables, taxes won't be withheld unless your gross allowance exceeds the minimum amount listed on the tax table for your filing status (e.g., single, married, number of dependents, etc.). You may change your tax withholding election at any time by submitting a Tax Withholding Election (PDF) form.

For more information regarding tax considerations, refer to the Service Retirement Election Application (PUB 43) (PDF, 1.33 MB). After you retire, you'll begin to receive an annual 1099R form.

The temporary annuity is an optional benefit you can choose that provides additional monthly income to temporarily enhance your pension from CalPERS.

The type of temporary annuity you're eligible for depends on your CalPERS membership date:

• Membership date as of January 1, 2002, or later – The benefit is payable from your retirement date to a specific age that you select – whole age from 62 to 70. You must have CalPERS service coordinated with Social Security to be eligible for this benefit. The amount of temporary annuity you request cannot exceed your estimated Social Security benefit. Contact the Social Security Administration before applying for a CalPERS service retirement.
• Membership date prior to January 1, 2002 – The benefit is payable from your retirement date to a specific age that you select – age 59 ½ or any whole age from 60 to 68. You can also specify the dollar amount you want to receive, within certain limitations. The amount of temporary annuity is not dependent on the amount of your estimated Social Security benefit.

This benefit is not free. The temporary annuity benefit is funded by a lifetime reduction to your retirement allowance.