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Retirement Plans

Generally, employees at Cal Poly are required to be enrolled in one of two retirement plans:
  • CalPERS (California Public Employee Retirement System) or
  • PST (Part time, Seasonal, Temporary)

CalPERS

CalPERS is a defined benefit retirement plan. It provides benefits based on members' years of service, age, and final (or hightest) compensation. In addition, benefits are provided for disability, death, and payments to survivors or beneficiaries of eligible members.

Cal Poly employees eligible for CalPERS membership become fully vested in their retirement benefits after five years of credited service. Eligible retirees will continue enrollment in health and dental plans throughout retirement, with the same premium prices offered active employees. Timelines and information about retiring from CalPERS can be found by downloading Cal Poly's Retirement Process.

Under certain circumstances, CalPERS members may purchase service credit. For more details regarding buying service credit, review the publication "A Guide to Your CalPERS Service Credit Purchase Options" (PERS-PUB-12) available online at the CalPERS Forms and Publications Center, or in the Human Resources office. Instructions on how to purchase service credit.

Pension Reform Legislation was passed effective January 1, 2013. Details of the latest Reform are still being worked out. Read the materials below for more information.

What is my retirement formula?

  • CSU employees who were first employed by the State on or before January 14, 2011:
    • 2% at age 55 (minimum age of 50), using the highest average 12 consecutive month compensation rate.
  • CSU employees who were first employed by the State on or after January 15, 2011:
    • 2% at age 60 (minimum age of 50), using the highest average 36 consecutive month compensation rate.
  • CSU Public Safety Unit 8 employees who were first employed by the State on or before June 30, 2011, and who entered State employment on or after April 1, 1986:
    • 3% at age 50 (minimum age of 50), using the highest average 12 consecutive month compensation rate.
  • CSU Public Safety MPP employees who were first hired by the State on or before January 14, 2011, and entered State employment on or after April 1, 1986:
    • 3% at age 50 (minimum age of 50), using the highest average 12 consecutive month final compensation rate.
  • CSU Public Safety Unit 8 employees who were first employed by the State on or after July 1, 2011:
    • 2.5% at age 55 (minimum age of 50), using the highest average 36 consecutive month compensation rate.
  • CSU Public Safety MPP employees who were first employed by the State on or after January 15, 2011:
    • 2.5% at age 55 (minimum age of 50), using the highest average 36 consecutive month compensation rate.
  • CSU employees who became CalPERS members on or after January 1, 2013*:
    • 2% at age 62 (minimum age of 52), using the highest 36 month compensation rate, subject to cap.
  • CSU Public Safety Unit 8 employees who became CalPERS members on or after January 1, 2013*:
    • 2.5% at age 57, using the highest 36 month compensaion rate, subject to cap.
  • CSU Public Safety MPP employees who became CalPERS members on or after January 1, 2013*:
    • 2.5% at age 57, using the highest 36 month compensation rate, subject to cap.

* The Public Employees' Pension Reform Act of 2013 ("PEPRA") provides that the new pension formula be offered to new members. The CSU's understanding is that an employee who previously worked for a CalPERS-covered employer would be considered a "new member" if the employee changes public employers and the separation between employers is greater than six months, unless the change of employment is between state entities or schools.

How much money is contributed to the PERS fund each month?

  • CSU employees contribute 5% of their gross pay over a $513 exclusion allowance (6% if a new PERS member after 1/1/2013).
  • CSU's public safety employees have an 8% contribution over a $238 exclusion allowance (10.5% if a new PERS member after 1/1/2013), which is currently paid by the CSU.
  • CSU's public safety MPP employees contribute 8% of their gross pay over a $238 exclusion allowance (10.5% if a new PERS member after 1/1/2013).
  • The employer contributions are set annually by CalPERS.
  • PEPRA introduced changes to the employee/employer cost sharing of retirement contributions, and is yet to be announced for the CSU.

Retirement Tutorial

Retirement Basics: De-mystifying the Process Cal Poly's Human Resources has created an online resource for everything you need to know before retiring. Watch this informative tutorial in the comfort of your own home and plan the next chapter of your life! The program is about 30 minutes, but may be paused for notetaking or your later return. This information pertains specifically to CSU Retirees..

Health Benefits in Retirement

New CalPERS Webinar Available: "Health Benefits into Retirement"

What is Reciprocity?

As a member of CalPERS you may be eligible for the benefits of reciprocity. Reciprocity is an agreement among public retirement systems to allow members to move from one public employer to another public employer within a specific time limit without losing valuable retirement and related benefit rights.

Detailed information about establishing reciprocity can be found in the CalPERS publication "When You Change Retirement Systems" (PERS-PUB-16) available online at the CalPERS Forms and Publications Center, or in the Human Resources office.

PST

The Federal Omnibus Budget Reconciliation Act (OBRA) of 1990 requires that part-time, seasonal, or temporary public employees who are not members of a retirement system be covered either by a qualified retirement plan or by Social Security. This requirement applies to Cal Poly employees who are presently excluded from membership in the California Public Employees' Retirement System.

Currently, all non-CalPERS eligible employees are placed into the Part-Time, Seasonal, Temporary Employees Retirement Program – Section 457 Deferred Compensation Plan. It is administered by the Department of Personnel Administration under the Savings Plus Program.

Employees contribute 7.5% of their gross pay into the PST plan. No employer contributions are made.

For more information, see the PST Fact Sheet.

Employment After Retirement.

There are no limits to working for a non CalPERS employer after retirement. However, there are restrictions when working for a CalPERS agency. For further information regarding employment after retirement please click here.