CalPERS
Overview
CalPERS offers a defined benefit plan where retirement benefits are based on a formula, rather than contributions and earnings to a savings plan. Retirement benefits are calculated based on a member's years of service credit, age at retirement, and final compensation (average salary for a defined period of employment).
- Service credit is the time you accrue while on the job under a CalPERS-covered employer.
- The minimum retirement age for service retirement for most members is 50 years with five years of service credit.
- The more service credit you have, the higher your retirement benefits will be.
- There are three basic types of retirement: service, disability, and industrial disability.
- Your retirement benefits are based on a formula - not what you contribute into the system.
CalPERS Compensation Limits
| Calendar Year | Classic Members | Pepra Members |
|---|---|---|
| 2023 | $330,000 | $146,042 |
| 2022 | $305,000 | $134,974 |
| 2021 | $290,000 | $128,059 |
| 2020 | $285,000 | $126,291 |
CalPERS Contribution Rates
| 2022-23 | 2021-22 | Past | |
|---|---|---|---|
| 2% @ 55 (Classic) Employee Rate |
7.0% | 7.0% | 7.0% |
| 2% @ 62 (Pepra) Employee Rate |
8.0% | 7.0% | 6.0% |
*Retirees cannot exceed 960 hours in a fiscal year (July 1 through June 30) for employment. There are no exceptions to this limit.
Retirement Benefits
CalPERS offers a defined benefit plan where retirement benefits are based on a formula, rather than contributions and earnings to a savings plan. Retirement benefits are calculated based on a member's years of service credit, age at retirement, and final compensation (average salary for a defined period of employment).
Retirement formulas vary based on:
- Classification (e.g., miscellaneous, safety, industrial, or peace officer/firefighter)
- Membership category (e.g., state, school, or public agency employer)
- Specific provisions in the contract between your agency and CalPERS
The three basic types of retirement are:
- Disability retirement for employees who can no longer perform the usual duties of their current position due to illness or injury
- Industrial disability retirement for safety members, or members whose agency contracts for this benefit, who are unable to perform the usual duties of their current position due to a job-related illness or injury
- Service retirement or "normal" retirement