State of California

  M E M O R A N D U M

  REFERENCE CODE:
  99-015

  DATE:
  April 2, 1999

  TO:
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Classification and Compensation Division

  SUBJECT:
  Partial Service Retirement

  CONTACT:
  Clarice Baker, Personnel Management Technician
  (916) 327-8490, CALNET 467-8490
  FAX: (916) 327-1886
  OFFICE VISION:  DPA(CEBAKER)
  INTERNET:  CLARICEBAKER@DPA.CA.GOV


  The purpose of this memorandum is to provide departments 
  with program information and guidelines for the Partial 
  Service Retirement Program (PSRP).  PSRP was developed in 
  1983 as a means of giving State employees the opportunity 
  to reduce their work time and ease into retirement.  This 
  program offers voluntary partial service retirement to 
  eligible employees where feasible.  PSRP employees are 
  considered to be "active" employees with a reduced time 
  base.  The appointing authority has the discretion to 
  approve or deny an employee's request to reduce their work 
  time for partial service retirement under Government Code 
  Sections 19996.30 through 19996.40.
  
  Employees are given the opportunity to cut back their work 
  hours without seriously reducing their income.  In 
  addition, employees who participate in the program are 
  guaranteed full health, dental, and vision care benefits.  
  Leave credits such as annual leave, vacation, sick leave, 
  and other benefit accruals are pro rated based on the 
  employee's reduced fractional time base (Attachment 1).  
  Service credit towards retirement will also be provided on 
  a pro rata basis.
  
  PSRP is available only to State miscellaneous and 
  industrial members of the California Public Employees' 
  Retirement System (CalPERS).  To participate, a member who 
  is enrolled in the First Tier retirement plan must have at 
  least 20 years of service and be age 50.  Members of the 
  Second Tier retirement plan must have 20 years of service 
  and be age 55.  All members who have the minimum number of 
  years of 
   

  service credit for retirement, and the sum of their age equals or 
  exceeds 65 years, are also eligible to participate.  The employer must 
  agree to the workload reduction before the member can apply for 
  partial service retirement.  Workload reduction may be for no less 
  than 20 percent and no more than 60 percent.
  
  Once the employer has approved the member's request to reduce his/her 
  work time, the member must complete a partial service retirement 
  application (DPA Form 062, Attachment 2).  The application must be 
  signed by the member's Personnel Officer and submitted to CalPERS for 
  processing.  CalPERS will calculate retirement benefits based on the 
  member's years of service as of the effective date of partial 
  retirement, then reduce that amount by the percent of reduced work 
  time.  The member's resulting monthly allowance would be based on this 
  reduction.
  
  Partial service retirement estimates can be obtained by contacting 
  CalPERS Benefit Service Division at (916) 326-3934 or (800) 352-2238.  
  There is also a partial service retirement informational booklet 
  (PERS-PUB-14) available and may be ordered by the following options:
  
  *Mail to: (using letterhead from your agency)
  
  CalPERS
  Attention:  Public Agency Requests
  P.O. Box 942715
  Sacramento, CA  94229-2715
  
  Telephone:
  
  Public Agency Requests
  (916) 658-1493
  8:30 a.m. - 5:00 p.m.
  
  *Fax to:
  
  CalPERS
  Public Agency Requests
  (916) 326-3281
  
  *E-Mail:
  
  Public_Agency_Requests@CalPERS.ca.gov
  
  *Please include your agency name, agency address, agency telephone 
  number (with area code), and employer code for shipping purposes.  
  Also include the form/publication number, title, number of units 
  ordered, and unit of measure for each item ordered with each request.
  The attached guidelines (Attachment 3) apply to all permanent full-
  time employees excluded from collective bargaining.  Refer to the 
  Memorandum of Understanding (MOU) for represented employees before 
  applying these guidelines.  Where provisions of this law are in 
  conflict with the provisions of an MOU reached pursuant to 
  Section 3517.5, the MOU shall be controlling.
  
  Questions regarding PSRP may be directed to the Personnel Management 
  Technician assigned to your department, by calling (916) 324-0439, 
  Calnet 454-0439.
  
  

  
  
  Frank Tanaka
  Program Manager
  
  Attachments will be distributed via mail.