Notification of Automatic Separation Criteria for Retired Annuitants with Zero Payroll Reported for 12 Consecutive Months

August 6, 2026
Circular Letter: 200-036-26
Topic: Other

To: All CalPERS Employers

Purpose

The purpose of this Circular Letter is to inform you that retired annuitants are now included in the monthly automated process of permanently separating California Public Employees’ Retirement System (CalPERS) appointments that meet specific criteria. Starting August 15, 2026, myCalPERS will automatically add a permanent separation date to retired annuitant (RA) appointments after 12 consecutive months of zero payroll reported.

Background

In an ongoing effort to ensure myCalPERS data integrity, we’re focusing on addressing RA appointments with zero/unposted payroll and/or missing separations.

Reporting Permanent Separations

Permanent separations should be reported when an RA ends employment with your agency, for any reason, to accurately capture employment details in myCalPERS. Prompt reporting of permanent separation dates ensures accurate reporting when an RA appointment ends.

Notification of Separation Criteria

We’ll send notification letters as part of the automatic separation process. Letters will be sent to the:

• Employer and RA when an active appointment has nine or more consecutive months of zero payroll reported, indicating the appointment is at risk of separation.
• Employer and RA when an active appointment has 12 consecutive months or more with zero payroll reported, indicating the appointment has been separated.

Appointments that had 12 consecutive months or more with zero payroll reported prior to January 1, 2025, will be automatically separated, but the employer and RA will not receive notification letters.

Employer Responsibilities

As an employer, you must:

• Report separation dates in a timely manner.
• Run the Automatic Permanent Separation-Potential Appointments myCalPERS report monthly to review employee(s) who have been separated and correct the separation dates to reflect the actual separation date in the RA’s employee file.

Questions

If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

Brad Hanson, Chief
Employer Account Management Division