Automatic Separation and Notification for Members With Zero Payroll Reported for 12 Consecutive Months

August 15, 2025
Circular Letter: 200-039-25
Topic: Membership

To: All CalPERS Employers

Purpose

The purpose of this Circular Letter is to inform you of a new monthly automated process that will permanently separate California Public Employees’ Retirement System (CalPERS) retirement appointments meeting specific criteria. In September 2025, we’ll begin issuing notifications on the last business day of every month to inform you when members are at risk of being automatically separated due to a lack of reported payroll. myCalPERS will automatically add a permanent separation date after 12 consecutive months of zero payroll reported.

Background

In an ongoing effort to ensure myCalPERS data integrity, we’re focusing on addressing retirement appointments with zero/unposted payroll and/or missing permanent separations. The absence of posted payroll and permanent separations may result in incorrect employer valuations and rates, illegal retirements, incorrect retirement benefit formula enrollment, and delays in processing refunds.

Reporting Permanent Separations

Permanent separations should be reported once a member ends employment with your agency, for any reason, to capture membership details in myCalPERS accurately. Timely reporting of permanent separation dates will ensure that member benefits are administered in a timely and accurate manner. Retirement appointments meeting specific criteria will now be permanently separated through a monthly automated process.

Notification of Separation Criteria

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

Employer when a member has an active appointment with three or more consecutive months of zero payroll reported, indicating the appointment is at risk of separation
Employer and member when a member has an active appointment with six or more consecutive months of zero payroll reported, indicating the appointment is at risk of separation
Employer and member when a member had an active appointment for 12 consecutive months or more with zero payroll reported, indicating the appointment has been separated

Exclusions

The automatic separation process will not include:

Retired annuitant appointments
Non-contributory appointments
Health-only appointments
Retirement appointments with an active health enrollment associated with the appointment
Appointments with a disability application in process

You are still responsible for properly maintaining accurate employment data for all employees.

Employer Responsibilities

As an employer, you must:

Report separation dates timely.
Run the Automatic Permanent Separation-Potential Appointments Cognos report monthly to review employee(s) who have been separated and correct the separation and/or leave dates as necessary.
Enter leave dates in myCalPERS as soon as a member is placed on leave.
Enter an end leave date immediately upon a member’s return to work.
Correct the automatically generated separation date to reflect the actual separation date in the member’s employee file.

Related Circular Letters

200-036-20 (PDF) New Automated Process to Permanently Separate Retirement Appointments that Meet Specific Criteria
200-002-13 (PDF) Reporting Permanent Separation Dates and Validating Participant Appointment Details in myCalPERS
200-015-16 (PDF) Reporting Permanent Separation Dates in myCalPERS
200-028-16 (PDF) Reporting Permanent Separation Dates
200-003-17 (PDF) Retirement Appointment Reconciliation

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