Are you planning on retiring soon? Check out these tips and FAQs about retirement and who you need to speak with before you go!
- 30 days prior to your retirement date you should meet with Accounting Supervisor Sarah Ortiz in Finance to go over accruals, sick leave buy back, unused sick leave for service credit, and deferred compensation.
- You must first go to CalPERS to fill out retirement papers, and then you need to submit a retirement notice to Human Resources. Human Resources will then notify payroll.
- In order to defer into 457 plans for 2 years, you must retire on or after November 1 (IRS rule).
- All of the employee’s last month overtime and any payout for unused vacation, sick leave, holiday, and FLSA pay will be on a separate check that you will get about 2 weeks after retirement date. This will be a paper check and cannot be direct deposit.
- Who do I contact in payroll/finance if I have finance questions related to retirement?
- What do I need to do with my health benefits before I retire?
- Nothing, your health benefits roll into retirement without any changes or breaks. CalPERS becomes your benefit administrator for future open enrollment changes or adding or deleting dependents. You will continue paying the 8% for your health insurance and it will be deducted from your retirement check by CalPERS.
- What do I need to do with my dental and vision before I retire?
- You can continue your dental and vision coverage into retirement but you have to pay for it. You will receive a packet in the mail from Olesya Melnichuk that has the rates and enrollment forms if you decide to continue either your dental and/or vision. You will pay the District for your dental and/or vision monthly via automatic withdrawal from your account.
- What happens when I reach Medicare age (65)?
- CalPERS requires that you enroll in Medicare Part B. If you cancel your Part B coverage or stop paying your Part B premiums, you will lose your health plan coverage and will be unable to re-enroll until you provide documentation of Medicare enrollment.
- Do I need to enroll for anything else besides Part B?
- You and your dependents may become eligible for premium-free Part A at age 65 with a work history of 10 years (40 quarters) with Social Security/Medicare-covered employment, or through the work history of a current, former or deceased spouse.
- I have decided I do not want Part B benefits. Will this affect my CalPERS Medicare health plan?
- Yes, you must have Medicare Part B to participate in a CalPERS Medicare health plan. If you cancel or choose not to enroll in your Part B coverage, then you will lose your CalPERS health coverage.
- If you do not sign up for Medicare Part B when you turn 65 and decide to sign up for it later, you may have to pay a federal Part B penalty surcharge. If you choose to sign up for it later, this means that you will pay more for every month of your Part B coverage. Contact the Social Security Administration (SSA) at (800) 772-1213 or TTY at (800) 325-0778 for more information about the Part B penalty surcharge.
- Will I be paying for Medicare once I reach 65 and how much?
- Yes, the Social Security Administration (SSA) establishes Medicare premiums annually. The SSA will notify you annually of the amount of your premiums with a letter, usually in late November or December. You are responsible for paying the Part B premiums to the SSA. If you are receiving SSA benefits, the premiums will be deducted from your Social Security benefits. If not, you will be billed quarterly.
- Will I continue paying 8% for my health premium once I enroll into Medicare?
- No, your 8% deduction will stop for your coverage but if you have other dependents that are not on Medicare, you will continue paying 8% for their coverage.
- How do I switch to a CalPERS Medicare health plan after retirement?
Who do I contact if I have questions related to benefits or Medicare?
- Sign up for Medicare Part B as soon as you qualify. Although most people qualify when they turn age 65, some people under age 65 may qualify due to a disability. Once enrolled, mail a copy of your Medicare card or Letter of Entitlement from SSA.
- Mail this information to: CalPERS Member Health Benefit Account Services Attn.: Medicare Administration P.O. Box 942715 Sacramento, CA 94229-2715