Early Exit Program - Frequently Asked Questions

The EEP is a program designed to create an incentive for CalPERS retirement eligible employees who have 10 years of CSUN experience, to separate from the University on or before December 31, 2020.

Please review the TERMS AND CONDITIONS document for eligibility requirements.

No, this is a strictly voluntary program.

Any time before or on December 31, 2020 unless the position is considered critical or hard to replace by the appropriate administrator and the Division Vice President. In that case, the separation date may be deferred until March 1, 2021.

Supervisor approval is required in order to ensure that there is a business continuity plan, in place, before your departure.

No, an employee does not have to retire after separating from CSUN through the EEP. Eligibility to participate only requires that an employee be CalPERS retirement eligible, but there is no requirement to retire.

If you are considering retirement as part of this process, use the CalPERS resources found in the FAQ below to guide you in exploring that option.

Remember, you must retire within 120 days of your separation from CSUN to maintain benefits eligibility in retirement.

Please see the severance package section of the TERMS AND CONDITIONS.

No. This timeline is designed to provide an appropriate planning opportunity to both employees and managers and must be applied consistently to ensure that everyone is treated fairly.

In designing the EEP, the University looked at multiple factors including budgetary constraints and operational needs of the University as well as other similar programs that have been offered at other universities and determined that the EEP is a generous program.

No. Golden Handshake retirement incentive is administered and directed by the Governor’s Office. CSUN does not have the authority to make service credit decisions. The EEP only provides a financial incentive.

This form must be signed to participate in the EEP. Employees will receive 20% of their calculated maximum severance benefit, 30 days after separation, For signing this form.

No, the final release is not mandatory but employees will receive the remaining 80% of their maximum calculated severance package for signing this form.

The first installment (20%) of the severance package will be paid within 30 calendar days after the separation date as indicated on the First Separation Agreement & Release and the Final Separation Agreement ad Release, provided the signed document is received within Human Resources within 14 days of being sent to the employee.

The second installment (remaining 80%) of the severance package will be paid within 30 calendar days after the separation date provided the Final Separation Agreement & Release is executed on the employee's separation date. This will be provided as one payment combined with the first installment if received within 14 days of the separation date. If the employee fails to sign and submit the Final Separation Agreement and Release on their established separation date, the 80% will be forfeited.

Severance pay is reportable income paid through the State Payroll System and subject to Social Security and Medicare withholding. It is not considered compensation earnable for purposes of calculating CalPERS retirement benefits. Severance pay will be taxed at a flat rate of 36.25% for the following:

• Federal 22%
• State 6.6%
• Social Security: 6.2%
• Medicare: 1.45%

As the severance package will be paid 30 days after separation, depending upon the employee's separation date, the severance package could be paid in 2021, a new tax year.

Pursuant to the IRS, severance payments may not be deferred into a retirement savings account unless it is paid when the employee is still active - meaning the deferral cannot take place after the employee has separated from the CSU. 

However, vacation payouts may (subject to contribution maximums) be deferred after separation.

Upon separation, when Payroll calculates your final earned pay, it will also calculate and authorize for payout, your:

• Un-used vacation hours balance, if applicable;
• A Personal Holiday not taken by your separation date; and
• Comp Time Earned cash value.

 Please note:

• Un-used sick leave hours are not paid out. Read more about sick leave HERE.
• If you plan to retire upon or within 120 days of separation, you can have your un-used sick leave reported to CalPERS (for conversion to service credit). Please see the HERE link above.

Please sign into your CalPERS account and use the retirement calculator tool to determine an estimate of your retirement benefit package. You can log onto your CalPERS account by following this link to the myCalPERS Login Page.

CalPERS Resources:

• CalPERS Service Retirement Information
• CSU Retiree Benefits
• Access your My|CalPERS Account
• How to Obtain a Retirement Estimate

Employee will be prohibited from accepting employment for another position with CSUN for 18 months from the date of separation.  This time period does not apply to rehired annuitant positions, which will adhere to time periods determined by CalPERS provisions.

Only alumni and Emeriti of CSUN will be able to keep their @csun email address after separation.

This is a one-time program but may be extended at the discretion of the University.