Form 0890 First Tier Future Election Package - California

Form 0890 or the "First Tier Future Election Package" is a form issued by the California Public Employees' Retirement System.

A PDF of the latest Form 0890 can be downloaded below or found on the California Public Employees' Retirement System Forms and Publications website.

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California Public Employees’ Retirement System
Customer Account Services Division
Retirement Account Services Section
P.O. Box 942704
Sacramento, CA 94229-2704
TTY: (877) 249-7442
888 CalPERS (or 888-225-7377) phone | Fax: (800) 959-6545
www.calpers.ca.gov
Dear Member,
Thank you for your interest in converting your State Second Tier Miscellaneous or Industrial
credited service to the State First Tier retirement formula. It is important to understand that
converting to the First Tier retirement formula is a voluntary decision that will require you to make
increased monthly retirement contributions. Your decision to convert to the First Tier retirement
formula is irrevocable. Therefore, please fully evaluate your retirement needs prior to making this
irrevocable conversion.
Converting from the State Second Tier Miscellaneous or Industrial retirement formula to the State
First Tier Miscellaneous or Industrial retirement formula is a two-step process.
Step 1 - Elect First Tier for Future Service:
Elect into the First Tier Retirement Formula by completing the attached First Tier Future
Election Document and Justification for Absence of Spouse or Registered Domestic
Partner’s Signature (if applicable). When you complete this election, you are authorizing
CalPERS to change your CalPERS retirement formula from the State Second Tier to the
State First Tier retirement formula on a prospective (future) basis. When your CalPERS
retirement formula has been changed to the First Tier, you will begin having First Tier
retirement contributions withheld from your paycheck on a prospective basis.
Step 2 - Convert Past Second Tier Service:
While you remain a member of CalPERS, at any time prior to retirement and after you
begin contributing under the First Tier retirement formula, you may submit the Tier
Conversion Cost Information Request form to initiate the process to convert your past
Second Tier service to the First Tier retirement formula.
In order to convert past Second Tier service, you must meet all of the following
conditions:
You are not retired;
You were an active State member on or after January 1, 2000; and,
You have State Second Tier service credit with CalPERS.
Upon receipt of your Tier Conversion Cost Information Request form, CalPERS will
provide you with the cost package for converting your past Second Tier service which
includes the election form(s) and available payment options.
If you are an active member and select a payment plan to pay for the conversion, the
deductions for this election will be in addition to your regular, ongoing retirement
contribution withholdings.
California Public Employees’ Retirement System
Customer Account Services Division
Retirement Account Services Section
P.O. Box 942704
Sacramento, CA 94229-2704
TTY: (877) 249-7442
888 CalPERS (or 888-225-7377) phone | Fax: (800) 959-6545
www.calpers.ca.gov
Dear Member,
Thank you for your interest in converting your State Second Tier Miscellaneous or Industrial
credited service to the State First Tier retirement formula. It is important to understand that
converting to the First Tier retirement formula is a voluntary decision that will require you to make
increased monthly retirement contributions. Your decision to convert to the First Tier retirement
formula is irrevocable. Therefore, please fully evaluate your retirement needs prior to making this
irrevocable conversion.
Converting from the State Second Tier Miscellaneous or Industrial retirement formula to the State
First Tier Miscellaneous or Industrial retirement formula is a two-step process.
Step 1 - Elect First Tier for Future Service:
Elect into the First Tier Retirement Formula by completing the attached First Tier Future
Election Document and Justification for Absence of Spouse or Registered Domestic
Partner’s Signature (if applicable). When you complete this election, you are authorizing
CalPERS to change your CalPERS retirement formula from the State Second Tier to the
State First Tier retirement formula on a prospective (future) basis. When your CalPERS
retirement formula has been changed to the First Tier, you will begin having First Tier
retirement contributions withheld from your paycheck on a prospective basis.
Step 2 - Convert Past Second Tier Service:
While you remain a member of CalPERS, at any time prior to retirement and after you
begin contributing under the First Tier retirement formula, you may submit the Tier
Conversion Cost Information Request form to initiate the process to convert your past
Second Tier service to the First Tier retirement formula.
In order to convert past Second Tier service, you must meet all of the following
conditions:
You are not retired;
You were an active State member on or after January 1, 2000; and,
You have State Second Tier service credit with CalPERS.
Upon receipt of your Tier Conversion Cost Information Request form, CalPERS will
provide you with the cost package for converting your past Second Tier service which
includes the election form(s) and available payment options.
If you are an active member and select a payment plan to pay for the conversion, the
deductions for this election will be in addition to your regular, ongoing retirement
contribution withholdings.
Comparing First and Second Tier Formula Benefits
To compare the differences between First and Second Tier retirement formulas, please refer to
the member benefit publication, State Miscellaneous & Industrial Member Benefit Publication
(PUB 6), available on the CalPERS website.
While on the CalPERS website, CalPERS encourages you to use the Retirement Estimate
Calculator, to generate the following retirement estimate scenarios:
a) Keeping all of your service credit under the Second Tier retirement formula;
b) Having your future service credited under the First Tier retirement formula with your
past service credit remaining under the Second Tier retirement formula; and
c) Having all of your service credit under the First Tier retirement formula.
CalPERS further encourages you to evaluate your retirement needs very carefully before
making a decision to convert from the Second Tier to the First Tier retirement formula. Your
election to convert to the First Tier retirement formula is irrevocable and will increase the
monthly retirement contributions that are withheld from your paycheck.
Remain in the Second Tier Retirement Formula:
No action is required on your part, if you wish to remain in the Second Tier retirement formula.
Prior to July 1, 2013, as a member of the Second Tier formula, you paid no member
contributions. Effective July 1, 2013, all Second Tier members began contributing 1.5%
of their monthly pensionable compensation and these contributions will increase by 1.5%
annually until equal sharing has reached fifty percent (50%) of normal contributions.
Reinstatement from Retirement
If you previously retired with Second Tier credited service and have reinstated from retirement,
you may elect to convert your past Second Tier service to the First Tier retirement formula;
however, you must earn a minimum of one year of service credit from your date of
reinstatement before your next retirement can be based on the First Tier retirement formula.
If you have any questions, please visit our website, www.calpers.ca.gov, or contact us toll-free
at 888 CalPERS (or 888-225-7377).
While reading this material, please keep in mind that CalPERS is governed by the Public
Employees’ Retirement Law. The Retirement Law is complex and subject to change. If
there is a conflict between the law and this package, any decision will be based on the
law.
ELECTING INTO THE FIRST TIER RETIREMENT FORMULA
ON A PROSPECTIVE (FUTURE) BASIS
Your decision to elect into the First Tier retirement formula for your future service will require
you to have increased monthly retirement contributions deducted from your pay for all future
State Miscellaneous or Industrial service. Your past Second Tier service will remain under the
Second Tier retirement formula. You have the right to convert your past Second Tier service to
the First Tier retirement formula at any time prior to retirement, as long as you remain a member
of CalPERS.
Worksheet: Estimating First Tier Retirement Contributions
By electing the First Tier retirement formula on a prospective (future) basis, First Tier retirement
contributions will be deducted from your paycheck effective the first day of the pay period
following the date CalPERS receives your Election Document.
Your First Tier retirement contributions will be based on your monthly gross earnings, reduced
by an exemption amount, and then multiplied by your contribution rate. The exemption amount
depends upon whether or not you contribute to Social Security. These retirement contributions
will be deducted from your monthly earnings on a tax-deferred basis.
Examples
How to Calculate Your Monthly First Tier
Calculate Your
Retirement Contribution Amount
Monthly First Tier
Retirement
Contribution Amount
Contributes to
Does not Contribute to
Social Security
Social Security
$
1. Gross monthly
$3,000
$3,000
-
earnings
- $513
- $317
2. Minus exemption
$
amount ($513 or
$317)*
$2,487
$2,683
x
3. Multiplied by your
contribution rate*
x
.08
x
.09
4. Equals your
$
monthly First Tier
retirement
$198.96
$241.47
contribution amount
*IMPORTANT: The above chart is for illustration purposes only. The exemption amounts and
contribution rates are subject to change. Please refer to your current bargaining
unit agreement.
P.O. Box 942715 Sacramento, CA 94229-2715
888 CalPERS (or 888-225-7377) | Fax: (800) 959-6545
www.calpers.ca.gov
California Public Employees’ Retirement System
Participant Name:
CalPERS ID or SSN:
First Tier Future Election Document
I have read and understand the information included in this package. This package consists of
the information explaining the conversion, the worksheet, this Election Document, and
Justification for Absence of Spouse's or Registered Domestic Partner's Signature form.
Accordingly, I wish to make the election as indicated by marking the box and providing my
signature below:
Future Service Only Option:
I authorize CalPERS to change my retirement formula from the State Second Tier to the
State First Tier. I hereby elect to enroll in the First Tier retirement formula for all future
qualifying State Miscellaneous or Industrial service. I understand that the election is on
a prospective (future) basis for all qualifying State Miscellaneous or Industrial service
and is irrevocable.
I further understand:
This election will be effective the first day of the month following the date this form is
received by CalPERS
Increased First Tier retirement contributions will be deducted from my paycheck
My past credited service will remain under the State Second Tier retirement formula
unless I later formally elect to convert that past Second Tier service to the First Tier
retirement formula and pay all associated costs
At any time prior to retirement and as long as I remain a CalPERS member, I can elect
to convert my past Second Tier service to the First Tier retirement formula. I also
understand there is a separate cost obligation required for the conversion of my past
Second Tier service credit.
Pursuant to Government Code Section 21073.7, the participant's current spouse or registered
domestic partner must be made aware of this selection of benefits by the participant. The
spouse or registered domestic partner of a CalPERS Participant must sign and acknowledge
the submission of the Election Document to be subject to the First Tier retirement formula.
If you are not married or your spouse or registered domestic partner is unable to sign, you must
complete the Justification for Absence of Spouse's or Registered Domestic Partner's Signature
form, and submit it with this election.
Signature
Date
Spouse/Registered Domestic Partner’s Signature
Date
Address
Telephone # (daytime)
City, State ZIP
my|CalPERS 0890
Justification for Absence of Spouse or Registered Domestic Partner’s Signature
Election to the First Tier
State Miscellaneous or Industrial Retirement Formula
Pursuant to Government Code Section 21073.7, the participant's current spouse or registered
domestic partner must be made aware of the selection of benefits by the participant. The
spouse or registered domestic partner of a CalPERS Participant must acknowledge the
submission of the Election Document for the First Tier retirement formula.
If the spouse’s or registered domestic partner's signature does not appear on the Election
Document, this form MUST be completed by the participant and submitted with the Election
Document.
Participant Name:
CalPERS ID or SSN:
I am not legally married nor have a registered domestic partner (choose appropriate
box):
Never Married/Registered
Divorced/marriage annulled date:
Widowed date:
I am married/registered, but my spouse/domestic partner did not sign the form
because:
I do not know, and have taken all reasonable steps, to determine the
whereabouts of my spouse/domestic partner.
My spouse/domestic partner has been advised of this election and has
refused to sign the document(s).
My spouse/domestic partner is incapable of signing the document(s) because
of an incapacitating mental or physical condition.
My spouse/domestic partner has no identifiable community property interest in
the benefit.
My spouse/domestic partner and I have executed a marriage settlement
agreement which makes the community property law inapplicable to the
marriage
I CERTIFY UNDER PENALTY OF PERJURY THAT THIS INFORMATION IS TRUE AND
CORRECT.
Participant Signature:
Date:
my|CalPERS 0890

Download Form 0890 First Tier Future Election Package - California

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