Helpful Tips. CalPERS Retirement Benefits Early thru Mid-Career. Breakout Sessions

Transcription

1 Helpful Tips CalPERS Retirement Benefits Early thru Mid-Career The Program Guide in your blue bag has: A place to take notes A publication checklist Resource information To view the presentation on your mobile device go to and select: I want to Attend Training & Events CalPERS Benefits Education Events Breakout Sessions Session description & download the PDF 1

2 CalPERS Retirement Benefits Early thru Mid-Career

3 Objectives: What is CalPERS? Different Sources of Retirement Income Your Retirement Calculation Power of Attorney Pre-retirement Death Benefits Leaving your Employer Online Tools & Resources Contacting CalPERS 3

4 What is CalPERS?

5 What is CalPERS? California Public Employees Retirement System (CalPERS) provides retirement and health benefits to more than 1.7 million public employees, retirees, and their families and more than 3,000 employers. 5

6 What is CalPERS? 67 Investment Earnings 21 CalPERS Employers o 12 CalPERS Members Source: Ca/PERS, Income over the last 20 years as of June CalPERS Benefits Education Events

7 Different Sources of Retirement Income

8 Different Sources of Retirement Income Social Security CalPERS Pension Personal Savings Retirement Income 8

9 Different Sources of Retirement Income CalPERS Pension Based on a defined formula Payable for life CalPERS manages funds CalPERS Pension Social Security Retirement Income Personal Savings 9

10 Different Sources of Retirement Income Three types of CalPERS Retirement: Service retirement Disability retirement Industrial disability retirement CalPERS Pension Social Security Retirement Income Personal Savings 10

11 Different Sources of Retirement Income Social Security Federal program funded through dedicated payroll taxes Benefits based on year of birth Benefits may begin as early as age 62 Contact my Social Security account CalPERS Pension Social Security Retirement Income Personal Savings 11

12 Different Sources of Retirement Income Personal Savings Examples Defined contribution plans Personal savings accounts Individual Retirement Account (IRA) Brokerage accounts, mutual funds Stocks, bonds Real estate CalPERS Pension Social Security Retirement Income Personal Savings 12

13 Different Sources of Retirement Income Personal Savings for Public Agency & School members: CalPERS Supplemental Income 457 Plan CalPERS Pension Social Security Personal Savings By contract only Retirement Income 13

14 Different Sources of Retirement Income Personal Savings for State members: Savings Plus Program CalPERS Supplemental Contribution Plan CalPERS Pension Social Security Retirement Income Personal Savings 14

15 Your Retirement Calculation

16 Your Retirement Calculation CalPERS uses three factors to calculate your retirement benefit Service Credit (years) X Benefit Factor (% per year, age) X Final Compensation ($) = Pension/ Unmodified Allowance ($) 16

17 Your Retirement Calculation: Service Credit Service Credit (years) Final Benefit Factor X X Compensation = (% per year, age) ($) Pension/ Unmodified Allowance ($) Earned on a fiscal-year basis (July 1 June 30) Accrued based on how you are paid Time Base Hourly Daily Monthly Requirement 1,720 Hours 215 Days 10 Months 17

18 Your Retirement Calculation: Service Credit 1 July August September October November December January February March April May June X X Total = 1.0 yr Example based on monthly pay. 18

19 Your Retirement Calculation: Service Credit July August September October November December January February March April May June Total = 0.75 yr. Example based on monthly pay. 19

20 Your Retirement Calculation: Service Credit Common Service Credit Purchase Types: Redeposit of withdrawn contributions Service prior to membership Military service Leave of absence 20

21 Your Retirement Calculation: Service Credit The Service Credit Purchase Process 1. Read the CalPERS Service Credit Booklet 2. Use the Service Credit Cost Estimator on our website 3. Complete and submit the appropriate cost request form Note: Forms for SPM, Redeposit and Military are only available after a cost estimate is completed 21

22 Your Retirement Calculation: Benefit Factor Service Credit (years) Final Benefit Factor X X Compensation = (% per year, age) ($) Pension/ Unmodified Allowance ($) Percentage of pay received for each year of service Determined by Age at retirement Retirement formula (based on employer contract) 22

23 Example: State & Schools 55 Birthday Quarters Your age at retirement Birthday: March 10 Your birthday benefit factor Add 3 months: June 10 Your ¼ year benefit factor Add 3 months: September 10 Your ½ year benefit factor Add 3 months: December 10 Your ¾ year benefit factor % 1.146% 1.190% 1.236%

24 Your Retirement Calculation: Benefit Factor State and Schools Retirement Formulas State Misc. & Industrial State Safety Schools (Tier 2)

25 Your Retirement Calculation: Benefit Factor Public Agency Retirement Formulas Local Miscellaneous Local Safety

26 Your Retirement Calculation: Benefit Factor Forms & Publications Center at Download booklets Your Benefits, Your Future for: State Miscellaneous & Industrial members State Safety members Local Miscellaneous members Local Safety members School members 26

27 Your Retirement Calculation: Final Compensation Service Credit (years) Final Benefit Factor X X Compensation = (% per year, age) ($) Pension/ Unmodified Allowance ($) Highest average pay rate & special compensation Based on full-time pay rate, not earnings 12 or 36 consecutive months (based on membership date and employer contract) 27

28 Your Retirement Calculation Service Credit (years) X Benefit Factor (% per year, age) X Final Compensation ($) = Pension/ Unmodified Allowance ($) 28

29 Your Retirement Calculation Example: 25 Years of Service, 2% benefit factor 25 years Service Credit X 2% Benefit Factor X $3, Final Compensation = $1, Monthly Retirement 50% 29

30 Power of Attorney

31 Power of Attorney Designate a person to conduct business Specifically for CalPERS issues You give specific authority Cannot be used to make medical decisions Cannot provide authority over real or personal property 31

32 Power of Attorney CalPERS Special Power of Attorney (Pub 30) 32

33 Pre-retirement Death Benefits

34 Pre-retirement Death Benefits Death benefits may be payable to beneficiaries or survivors, based on member s eligibility. One-time payment Monthly payments 34

35 Pre-retirement Death Benefits Beneficiaries for lump sum payments may include individuals, trusts, an estate or corporations If no designation form on file, State law defines beneficiary Certain events revoke designation Update your designation through my CalPERS Obtain Active Member Beneficiary Designation Form CalPERS On-Line Your personnel office 35

36 Pre-retirement Death Benefits my I Cal PERS a I.")!"Jlll'\1 ir '~" John I Cnnt.=ir.1 IJ~. I l..!2!1.ill Mill!:: Retirement l{c.;l11c.:111c.:11l Sur <:t1y Oc.:11..::hl Summary S k:t t.c.:rm.ml ; l{..,'(11..::1 1 1<.rnl C:;l111HJIL: Galculalu1 J\pµly ~ u1 1-«:lnc.:1m.?11l l:::k 11uht:rn11c ; Beneficiaries CalPERS Smith, John Member.Lump Sum Benefits Lumµ sum l>t:u!:ilil::; 1:11e::; oc 1 ~-lim~ "1Uyme::11l> mul.st! 1:11 U1t: limtl' of yuu1 dt:1:1lh lo l.lt!11tl'fic iv 1 i ~::; or your choi<.'t:. II ~u u h<:tvt.rn'l cjc:;,y11 <;ll-tj <; ltc11c hc1ary l:lulurc youi dcalh, v;c'll p<:ty Ille lumlj ;u111 llcnchl lu ~uu1 ;u1vmj1 ;, tra ;OO 0 11 statute. Whal are primary and secondary beneficiaries? Vuc.n primary b::n:ficic: 1 i1:~. w: lhc fin.i lo ~ :Hi'M llth 11: 11p -> t,..n.,ri.!ip,">l" )'OU C'IP..=tlh "'ou car.a1so aes1gnate Hconciary i..m. ncl,jt Y_'o;'Jt u c:11: 1: r liu1.'\l loyout ump SL 'll c:-r cnt trtrcysur/vc ~ of \'UUI l)fillloll\' l 'l'f M.'flL ic.11k s. Pre-Retirement Benefits What's this? t:l t!1 1el 1..:11:u1~-; ellt!...:llve v :; o '2013 Primary Beneficiaries Relationship Percentage n rothar 100% Cha:ng::: My Bcncfic1anc~ 36 CalPERS Benefits Education Events

37 Pre-retirement Death Benefits Member Benefits Booklet CalPERS On-Line 37

38 Leaving your Employer

39 Leaving Your Employer Leave funds in your CalPERS account (happens automatically, unless you elect otherwise) Take a refund Cash refund Rollover Move to another California public employer 39

40 Leaving Your Employer Reciprocity Reciprocity is an agreement among California public retirement systems which allows: maintaining membership in each system coordination of benefits between systems No transfer of funds or service credit 40

41 Leaving Your Employer Classic Member Member prior to 01/01/2013 Moved from one California public employer to another within six months New Member Member on or after 01/01/2013 No prior membership in any California retirement system Break in service of more than six months 41

42 Online Tools & Resources

43 Online Tools & Resources CalPERS On-Line: Service Credit Cost Estimator Retirement Estimate Calculator Forms & Publications 43

44 Online Tools & Resources CalPERS Subscriptions Member Education Bulletin CalPERS News Employer Bulletin Board Meeting Notice & Agenda Alert Ambassador Program Newsletter 44

45 Online Tools & Resources my CalPERS: my.calpers.ca.gov Clear, easy to read design Access real-time account details and balances Calculate a retirement estimate Use the Message Center to ask questions 45

46 Online Tools & Resources mylcalpers i Logg~: in as I Jane Contact Us I LOJ Out Home '!ebreme nt Health Education Resources Prcf1le Message Center ~ mmm 0 2 Read. Learn. Explore. Download a:nd order pubt1eilbons» 1' :tl Mt:-1 11~ SICIL~ U ll:'j ll Your AMS is Availaole. CalPERS Market Value 11 $242.8 billion as o: c ose on i23i20' 2 II Cal PERS Account Summary 1as1 reported a130:2012 Total Balance Total Service Credit Time to Earliest Retirement $51, years O.OOO years Contributions Interest Your Current Your Retirement Formula $41, $9, Membership 2%@55 State Miscellaneous Health Enrollment Your Health is Important 46 CalPERS Benefits Education Events

47 Online Tools & Resources Education Resources Access publications Register for online and instructor-led classes Schedule retirement counseling appointments 47

48 Online Tools & Resources These classes available in my CalPERS Videos and webinars are also available online. 48

49 Online Tools & Resources Instructor-led Classes Enroll in instructor-led and online classes Print class materials and driving directions 49

50 Online Tools & Resources Social Networking Follow us on Twitter: Like us on Facebook: View Videos on YouTube: 50

51 Contacting CalPERS

52 Contacting CalPERS Message Center in my CalPERS By mail By phone 888 CalPERS (or ) Visit a Regional Office Available 8:00 a.m. to 5:00 p.m., M-F Busiest times: Mondays First day of the month Day after a holiday 52

53 Contacting CalPERS Regional Offices Fresno Glendale Orange Sacramento San Bernardino San Diego San Jose Walnut Creek 53

54 Questions?

55 or 888 CalPERS (or ) Please complete the session evaluation 55