Getting Ready to Retire?

Whether it 5 years or 35 years of service, if you are getting ready to retire there are a few items you will want to check.  Most District employees contribute to CalPERS (California Public Employees' Retirement System)

With many companies reducing or eliminating their pensions, PERS has remained a stable source of retirement funds.  Consider yourself lucky to be part of one of the largest pension funds in California.  That is why it is so important to keep aware of any changes the Governor of California may do to affect PERS.

How much will you receive from PERS? 

That depends on how many years of service and how old you are.  To get the best idea of what PERS is all about, try to attend a PERS workshops prior to retiring.  PERS has many options and you will need to decide which option to choose.  It is important to remember that you cannot change your option after you make a decision.

What are way to increase the amount you receive from PERS? 

There are a few ways.  If you worked part-time or as a substitute, you can purchase that time towards service credit.  You can also purchase up to five years of service credit.  If you withdrew funds from PERS, you should consider redepositing that amount.

Did you know that unused sick days can go towards service credit?  Yes, it can!  For each day (8 hours), you will receive one day of credit.  This is a one-for-one exchange.  Unused vacation day will NOT go towards PERS.  Your Chapter has also negotiated that soon-to-retire employee can donate unused sick days to the Catastrophic Sick Leave Bank.  What a great way to help out a fellow employee in a time of need before you retire.

Are you getting a promoted soon?  PERS is based on the highest full pay rate you have earned for 12 consecutive months.  Make sure to check that your PERS is based on your highest rate of pay.  If your current salary is lower that your highest rate of pay, be sure to let PERS know.

Getting your application into PERS.

It is recommended to send your application 90 day in advance of your retirement date.  You should also check on the number of unused sick day and get an estimate on how much service credit you will receive. 

Does it matter which month I choose to retire?

In some cases it does.  Factors such as birth date, anniversary date (start date of working for the district) and cost-of-living increase, which starts at the beginning of next year, will determine when is the best month to retire.  Speak with a PERS representative to determine this. 

Will PERS be enough for me to retire on?

Again, consider yourself lucky to have PERS.  With out it, you would need to consider retirement investments to supplement Social Security.  But you should still consider other retirement investment anyways.  Some examples are Tax Shelter Annuities and IRAs.  It would be best to look over your financial situation or speak with a financial planner.

Anything else I should consider?

Probably the biggest concern after you retire is Medical insurance.  Remember that since you were a District employee, you will have the option to still be a part of the District's health plan.  You will need to pay your portion as well as the previously covered District's portion.  Do a little research and see if this plan would be cheaper that purchasing a plan on your own.  You can obtain the District's health care rates from the Personnel office.

If you would still like to work part-time for the District, you can request to be placed on the Substitute list, per our contract, and receive priority plus be paid at a higher step.  Standard step rates for substitutes is step 1 level pay.

Your chapter is also working on getting a retired CSEA employee to speak from experience on the retirement process.

If you have more question, contact CalPERS at 888-225-7377 or visit www.calpers.ca.gov

For Social Security questions, contact 800-772-1213 or visit www.ssa.gov

CSEA has a Understanding CalPERS book. Contact member benefits at 866-487-2732