Contents
Cal Poly Pomona

Retiree Health
Frequently Asked Questions (FAQs)

Logo that says "F.A.Q." which stands for Frequently Asked Questions.

Question 1). I am age 37 and must leave the CSU’s employ. Am I required to move my contributions out of CalPERS since I am not yet age 50?

Answer. No. Any employee, regardless of age or amount of service credit, may leave their contributions on file with CalPERS and they will continue to earn interest. The member may elect to take a cash disbursement, subject to tax and possible penalties for early withdrawal; rollover their CalPERS contributions to either another employer’s qualified retirement plan that accepts rollovers or to an individual retirement account (IRA); or may retire once they attain age 50 or greater so long as they have five or more years of CalPERS-credited service.

However, if a member’s retirement date is more than 120 days after separation from employment with the CSU, the member will not be eligible for sick leave service credit nor the health benefits as part of the retirement.

Question 2). Will my CalPERS-sponsored medical coverage continue into retirement?

Answer. If a CSU employee is eligible for medical coverage through CalPERS at the time of employment separation and retirement occurs within 120 days, then coverage is available as part of the retirement. If retirement occurs within 30 days of employment separation, coverage will continue automatically. If retirement occurs more than 30 days but within 120 days of employment separation, the retiree may elect to re-enroll in their CalPERS sponsored medical plan.

Question 3). What if I am enrolled in the CSU FlexCash program instead of medical and/or dental at the time of retirement?

Answer. Employees eligible and enrolled in the CSU FlexCash program in lieu of medical and/or dental may elect to enroll in a CalPERS-sponsored medical plan and/or CSU dental plan within 30 days of the retirement date or during any annual Open Enrollment Period.

Question 4). Does my vision coverage with Medical Eye Services (CPIC Life) continue into retirement?

Answer. No. The vision coverage does not continue into retirement; however, the retiree (and/or eligible dependents) may pay the monthly premium to continue the coverage on a temporary basis (eighteen months) if elected immediately upon the member’s retirement. This coverage is under the provisions of COBRA (Consolidated Omnibus Budget Reconciliation Act) and the cost is approximately $12.16 per month regardless of the number of eligible dependents to be covered.

Retirees participating in the Faculty Early Retirement Program (FERP) will have the Medical Eye Services coverage temporarily reinstated once they are back on pay status with the CSU as a FERP employee. Contact the Benefits Section of Human Resource Services at extension 3734 or 3735 for details.

Question 5). Does my sick leave count towards retirement?

Answer. If your retirement occurs within 120 days of separating employment with the CSU then your sick leave will count towards retirement service credit when CalPERS calculates your monthly retirement allowance.

Question 6). Can I cancel my application for service retirement?

Answer. You may cancel your service retirement application or change your retirement effective date any time prior to the mailing of your first retirement check. If you wish to cancel or change your retirement date, please notify CalPERS and your employer in writing.

Question 7). What is the Faculty Early Retirement Program (FERP)?

Answer. FERP is a program for tenured faculty, age 55 years or older, who may request participation if retiring for service rather than disability retirement. The program is designed to allow retiring faculty to work for a specified period each academic year, for a limited number of years, in addition to retirement benefits from CalPERS. The program currently offers the retiree a choice between working one quarter per academic year at full-time or the academic year (three quarters) at half-time. Other CSU employment during FERP participation is strictly prohibited.

Question 8). When is my FERP application due in order to begin participation next academic year?

Answer. The application deadline is typically the end of March preceeding the academic year in which FERP is to begin; however, the President may waive the application deadline. Also, the applicant’s service retirement must be effective prior to the beginning of the academic year in which FERP begins.

Question 9). If I am a retired staff or faculty member, how much can I work after retirement without affecting my CalPERS retirement?

Answer. Retirees of the California State University system may work up to 960 hours per fiscal year or 50 % of the hours worked in the last fiscal year prior to retirement without affecting their CalPERS retirement. However, if drawing Social Security benefits, be aware that Social Security has an earnings limitation (dependent upon age). For current information, contact Social Security at 1-800-772-1213 or visit their Web Site at http://www.ssa.gov.

Question 10). What is a Temporary Annuity?

Answer. A Temporary Annuity is a CalPERS program wherein the employee permanently reduces their monthly retirement allowance in order to receive an annuity during the beginning of their retirement. The retiree selects the dollar amount they wish to receive, within certain limitations. The benefit is payable from the retirement date to a specific age selected by the employee--59 1/2 or any whole age from 60 to 68. The CalPERS brochure, Temporary Annuity is available through the Customer Service Center located in Human Resource Services, CLA Building 98, Room B1-20 or from any CalPERS Field Office.

Question 11). Once I am retired and reach age 65 how does my medical coverage change?

Answer. Medicare consists of two parts--Part A is hospitalization and Part B is medical coverage. If you are retired and have both Parts A and B, you must change your CalPERS sponsored medical coverage (Kaiser, PERS-CARE) to the managed medicare/supplement to medicare coverage offered by CalPERS. Typically, the benefits are enhanced and the premium costs are reduced making this a beneficial choice for most retirees. To make an informed decision, please refer to the CalPERS booklet, Understanding Medicare & Your CalPERS Health Benefits, available through the Customer Service Center located in Human Resource Services, Building 98, Room B1-20 or through any CalPERS Field Office. Also, refer to the the CalPERS Online page dedicated to this subject at http://www.calpers.ca.gov/index.jsp?bc=/member/health/medicare/home.xml

Question 12). After I retire, may I change my beneficiary and my retirement allowance option?

Answer. Your beneficiary(ies) for the retired lump sum death benefit of $2000, may be changed at any time by completing a Beneficiary Designation for Benefits After Retirement Form (PRS-509), available through any CalPERS Field Office or by calling 1-800-352-2238. The retirement allowance option may not be changed unless you qualify due to an event such as death of your named beneficiary, marriage after retirement, dissolution of marriage, etc. The CalPERS pamphlet Changing Options and Beneficiaries After Your Retirement is available through any CalPERS Field Office or at http://www.calpers.ca.gov.