Thinking about retiring? Congratulations!  Below, we’ll walk you through some frequently asked questions retirees have as well as advice and recommendations from CEMA retirees who have gone through this process before you.  As always, refer to CEMA’s contracts for Santa Clara County, Monterey County, Santa Cruz County, and Santa Clara County Superior Court.

Retiree Medical

Retiree medical benefits are offered by Santa Clara County as a benefit to County employees.

How do I qualify for Retiree Medical?

There are two requirements:

First, that you have the required number of years of service credit as a County employee.  The number of years of service required to qualify has increased over the years at the following times:

  • For employees hired on or after August 12, 1996. 8 years of service.
  • For employees hired on or after June 19, 2006. 10 years of service.
  • For employees hired on or after August 19, 2013. 15 years of service.

Second, you need to be eligible to retiree from CALPERS and you need to retire from CALPERS (meaning you start collecting your retirement benefits from CALPERS) and from the County on the same day.  It is crucial that you coordinate with CALPERS and County HR to ensure you retire on the same day from both CALPERS and the County.

CEMA recommends that you set your date first with CALPERS, and once they have confirmed a date, give that date as your final day to the County for employment.

I was hired into a union with a different vesting rate for retiree healthcare, which applies?

The union from which you are retiring, not the one into which you were hired determines your vesting schedule and benefit for retiree healthcare.  This could be to your detriment or benefit depending on the previous union.

Is retiree healthcare just for me or for my family?

It’s only for you, the employee.

What if I fail to retiree on the same day from CALPERS and the County?

The County is unlikely to allow you to take the retiree healthcare benefit, this requirement is arbitrary and difficulty by design.  It is incumbent upon you to ensure you meet the requirements.

Retirement Timing

What is the best timing to retire to maximize benefits?

When you should retire is a personal decision for each individual CEMA member.  We can always work more to improve our retirement benefits, but we can’t add more years to our lives or time with our family.  That said, here are the best practices to maximize your CALPERS benefits:

Timing for Your Annual CALPERS Increase

CALPERS, at their discretion, gives annual increases at the end of the calendar year to active retirees to keep up with inflation as allowed by the CALPERS investment return rates.  Many CEMA employees will retire just before the end of the calendar year so that they see an immediate raise upon their base retirement benefit calculation

Timing for Your Healthcare Benefits

Retiring at the beginning of a month and pay period will give you some additional time on your County health insurance, generally until the end of the month.  You’ll want to work at least a couple days in that month and pay period to ensure there’s a paycheck from which the premium can be deducted to ensure coverage.  This gives you some overlap time to ensure there’s no gap in coverage as you transition from your health insurance as a County employee to whatever you will elect as a retiree.

Timing to Maximize Credit for Your Last Raise

Most CEMA employees see their annual raises in June of each year.  This means that when you get to June of the following year, you will have set a new highest year’s salary with full credit for that raise from the previous year factored in.  For Classic CALPERS members, PERS will look at your highest year’s pay to determine your benefit, for PEPRA, they will look at the highest three-year period.

You should see an increase every year as a CEMA employee, but often CEMA frontloads raises to the beginning of the contract to benefit members looking to retire soon.  For example, in our current 2024-2026 contract, the first wage increase of the contract was the largest of the contract at 5% in 6/2024.  Employees who stay until 7/2025 to retiree will see the full benefit of that 5% raise on their pension.

Note: If you are already at the salary cap for your pension tier this is not a relevant consideration for you.

Final Pay

When will I see my last paycheck?

In California, private sector employers are required to have a final paycheck with all final pay and PTO payable to employees on the last day of their employment. It is a common misconception that this applies to the County, it does not.  Public sector employers are exempted from that requirement.  Most County employees will see a final paycheck with all STO/Sick leave cashed out in between 2-4 weeks after retirement.

If I don’t get my final paycheck in this timeframe, what can I do?

Reach our first to your former manager and HR Service Center representative.  If they are unable to assist, CEMA will be happy to intervene and ensure you get timely payment.  Reach out at [email protected] or to your former business rep.

If CEMA negotiates a retro benefit after I retire, can I get it if I worked during the covered period?

In contract benefits, the County has never agreed to cover former employees as part of a retro benefit. If there as an arbitration settlement or grievance settlement, then you likely will be included as we saw most recently with Nurse Manager raise settlements and with the signing bonus arbitration victory.

Working as a Retiree

Can I work as a CALPERS retiree?

Yes, you can work elsewhere while still collecting your retirement with the CALPERS.  However, not for another CALPERS contributing employer/position.  If you do, CALPERS will re-enroll you as a contributing member and end your retirement benefit until you retire from your new position as well.

Some employees return to work for the County as retirees though?

There are limited exceptions where you can return for project-work as a retired annuitant to work for the County.  It’s limited to 960 hours per fiscal year.  You can see additional rules on CALPERS website.

Steps to Retire

What are my steps to planning retirement?

First, doublecheck your days of service credit on your paycheck or employee portal.  If you think something could be off, get a service credit calculation from your HR Service Center Rep to confirm your days of service.

Second, schedule a one-on-one appointment with CALPERS to review your retirement benefit and get an estimate of your pension benefit.  As a rule, always speak with CALPERS directly regarding pension benefit questions.  The County does not control CALPERS and if you receive any incorrect information from the County about your pension benefit or timing, you’re out of luck.  You can follow this link to make an appointment.

Third, set a date.  Settle your date with CALPERS first and then inform the County.  It is considerate to give as much notice as possible.  Most CEMA members provide at least two months of notice.  You understand your position and what it will take to train and hire a replacement for you.

Fourth, notify the County of that date.  This should be confirmed with an email in writing to your boss with your last date with the County.  Doing it in this order ensures retirement with CALPERS and the County align on the same date for retiree healthcare.

Rescind Retirement Notice

Can I retract a retirement notice to my boss?

Yes, barring some limited exceptions.  If you participated in a program like the Voluntary Separation Incentive Program or a settlement agreement setting a separation date, you may not be able to retract your retirement date and notice.

Sick Leave Bank

Will I get paid for my accrued sick leave?

Yes, you will be paid for some of it in line with CEMA’s negotiated contract.  The benefit kicks in when you reach 2610 days of service credit with the County. See CEMA contract section 14.2(f) for details.  You will receive between 20% and 50% of the time accrued in your payout.

Can I use all my sick leave prior to retiring?

Some employees take deferred medical leave they’ve been waiting for prior to leaving their County job.  For example, if you’ve been deferring a hip replacement, knee replacement, or cataract surgery, you may choose to schedule it directly prior to your retirement and use your accrued sick leave.  The employer cannot stop you from doing this as long as your time off is protected by FMLA.

However, as responsible County managers and as CEMA, we encourage you to be transparent and open with your department that your plan is to take this sick leave and then retire.  This lets your department plan your transition around your leave, ensure you offload any work prior to leaving, and then lets your manager start the posting process for your replacement in advance.

Cashing Out Your Retirement

Can I cashout my retirement instead of collecting a pension?

You can, however, you will only get the amount you contributed during your employment as part of the PERS – EE contribution line on your paycheck, this is only a part of what you contributed and gets no value for what the employer contributed on your behalf.

Can my benefits be inherited by my family?

Yes, when you meet with CALPERS, you can review options for pension benefits that will survive you and be paid to your children or spouse.  To maximize benefits for them, you can elect for a lower pension benefit amount during your lifetime.  For those facing a terminal illness, this is likely a better option than cashing out your pension.  Discuss your options with CALPERS and your financial planner.