Benefits

CalPERS Pension Benefits Based on Three Factors

  • Service Credit - Total years of employment with a CalPERS employer. This could include other types of service credit such as sick leave and service credit purchase. Employees can view their Annual Member Statement by logging in to my|CalPERS to view service credit.

  • Benefit Factor - Percentage of final compensation for each year of service credit, based on an employee’s age at retirement and retirement formula(s).

  • Final Compensation – Employee’s highest average full-time monthly pay rate for 12 or 36 consecutive months of employment, depending upon the employee’s benefit formula (if the employee pays into Social Security, $133.33 per will be deducted from the employee’s final compensation).  See additional information below on Final Compensation Caps applicable to some members.

Final Compensation Caps

Employees who became members of CalPERS on or after 7/1/1996, are subject to the IRC 401(a) (17) limit, which restricts the amount of compensation that can be used to calculate the CalPERS retirement benefit. For 2020, the limit is $285,000.

Employees who become new members of CalPERS on or after 1/1/2013, and deemed PEPRA members, are subject to a compensation cap of $126,291 if participating in Social Security. These amounts represent the maximum salary that can count toward final compensation and calculation of retirement benefits for employees that are placed in the 2% at 62 retirement formula.