CalPERS Separation from Service Explained: What Happens When You Leave Public Employment
vanessa325dejesus@gmail.comIntroduction
Public employees covered by CalPERS may leave their positions for many reasons, including career changes, relocation, or retirement planning. When employment ends, it is commonly referred to as a separation from service.
This article explains what separation from service means under CalPERS, how it may affect eligibility and service credit, and what members should generally understand after leaving a CalPERS-covered position.
What Is Separation from Service in CalPERS?
Under CalPERS, separation from service refers to the end of employment with a CalPERS-participating public employer.
Separation does not automatically mean retirement. It simply indicates that active employment has ended.
Does Separation from Service End CalPERS Membership?
Separation from service does not automatically eliminate CalPERS membership. Outcomes depend on:
- Vesting status
- Length of service credit
- Employment history
Members who are vested may retain eligibility for future retirement benefits even after leaving public employment.
What Happens to Service Credit After Separation?
After separation:
- Earned service credit generally remains on record
- No additional service credit accrues without reemployment
- Service credit may continue if reemployed by a CalPERS-covered employer
Service credit preservation is an important factor in long-term retirement planning.
Separation Before Retirement Eligibility
If a member separates from service before reaching retirement age:
- Retirement benefits may be deferred
- Eligibility depends on vesting rules
- Retirement can be applied for later, when age requirements are met
Separation does not require immediate retirement.
Separation and Retirement Applications
To begin receiving retirement benefits, a member must meet eligibility requirements and submit a retirement application. Separation from service alone does not trigger benefit payments.
Timing rules and processing requirements apply based on individual circumstances.
Returning to Public Employment After Separation
Some individuals later return to CalPERS-covered employment. In such cases:
- Service credit may resume
- Prior credit may be combined, depending on rules
- Eligibility calculations may be updated
Reemployment rules depend on employer participation and employment classification.
How Separation Affects Health Benefits
Health benefit eligibility after separation depends on:
- Employer participation in health programs
- Retirement status
- Length of service
Health benefits are administered separately from pension benefits and follow different eligibility criteria.
Common Questions About Separation from Service
Is separation the same as retirement?
No. Separation simply means employment has ended. Retirement requires meeting eligibility and applying for benefits.
Does separation cancel future benefits?
Not necessarily. Vested members may still qualify for future retirement benefits.
Can separated members access CalPERS accounts?
Access may continue for members with retained eligibility or pending benefits.
Final Thoughts
Separation from service under CalPERS marks an employment change, not necessarily the end of retirement eligibility. Understanding how separation affects service credit, vesting, and future benefits helps members make informed decisions without confusion.
This guide provides a neutral overview designed for informational purposes only.
