Continuing Your Health Benefits in Retirement

For State and CSU Members

Continuing your CalPERS health coverage into retirement depends on when you stop working and the official date of your retirement. For some people, these are not the same date. If you are enrolled in a CalPERS health plan at the time you stop working and your retirement date is:

• Within 30 days, your coverage will continue into retirement without a break.
• Between 30-120 days, you are eligible to re-enroll when you retire. To do so, submit a written request to the CalPERS Health Benefit Services Division or call 888 CalPERS (or 888-225-7377) within 60 days of your retirement date or wait for the next open enrollment period.
• More than 120 days, you may not be eligible for coverage. Some exempt State employees may enroll as retirees if the gap exceeds 120 days. If this is your case, you should contact CalPERS for more information.

Between your last work day and your official retirement date, you can pay the full monthly premium to avoid a suspension in coverage. Contact your Health Benefits Officer for more information on completing a Direct Payment Authorization Form (HBD-21). If you don't want to continue your health insurance into retirement, you must cancel your coverage by completing a Health Benefit Plan Enrollment Form (HBD-12) (PDF, 176 KB).

For State Members Only

Employer Contributions After Retirement
The amount the State contributes towards your health coverage depends on whether or not you are "vested." Vesting is determined by a formula set by law and is based on the date you were first employed. The State contribution may not completely cover the full monthly health premium of your health plan. Depending on which plan you choose, you may be responsible for a portion of the monthly premium.

Vesting Requirements For Employer Contributions
If you meet the requirements to continue health benefits into retirement and were first hired by the State:

• Prior to January 1, 1985, you are eligible to receive 100 percent of the State's contribution.
• Between January 1, 1985, and January 1, 1989, you are subject to "vesting" requirements. You must have 10 years of service to be fully vested and qualify for 100 percent of the State's contribution towards health coverage. With less than 10 years, you are still eligible for health coverage, however, there will be an additional cost to you since the State's contribution is reduced by about 10 percent for each year of service under 10 years.
• After January 1, 1989, you are still eligible for health coverage, however, the percentage of the State's contribution is based on your completed years of State service. The table below shows the percentage of the State's contribution you will receive. 

Dated: 11-17-2009