Retirement cannot be earlier than the first of the month in which the employees application is received by CalPERS.
Retirement may be effective any day of the week. If an employee separates employment on a Friday, retirement may be effective on Saturday.
Employees may request to use vacation (approval is based on operational needs of the University) and separate after exhausting all or part of their vacation credits.
Vacation remaining after employment separation is paid to the employee.
When retiring prior to attaining age 63, an employees age determines the benefit factor used in their retirement formula. To maximize the retirement benefit, an employee may decide to retire on their birthday or after completing another quarter year of age to increase their benefit factor.
If an employee is planning to retire at the end of one calendar year or at the beginning of the next calendar year, they should consider the cost-of-living increase. The cost-of-living increase is applied to the retirement allowance on May 1 of the second calendar year following the retirement. Example: If the employees retirement date is December 31, 2007, they will receive the first cost of living increase on the May 1, 2009 retirement check. However, if retirement is on January 1, 2008, the first increase will be on the May 1, 2010 retirement check.
If an academic year employee receives their paychecks spread out over twelve months and retires at the end of the academic year (mid June) instead of when their paychecks normally run out (September 1), they will start collecting the retirement pay approximately two and one-half months earlier and will receive the pay earned during the academic year as a settlement check sometime in June.
However, employees should determine which date is more advantageous (mid-June versus September 1). For some, it is better to remain on the payroll through the summer months due to various factors (additional service credit, attaining a birthday quarter, continuance of employer-paid vision coverage and life insurance which does not continue into retirement, etc.); whereas some employees will benefit more from collecting the retirement pay during those summer months.