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CalPERS 2% at 62 — The PEPRA Formula Explained

The most common PEPRA CalPERS retirement formula

The 2% at 62 formula is the standard PEPRA formula for CalPERS Miscellaneous members — covering State Miscellaneous, Local Miscellaneous, and School PEPRA members hired on or after January 1, 2013. The benefit factor reaches its full 2.000% at age 62. Below 62, the factor is lower (down to 1.000% at the minimum retirement age of 52). Above 62, the factor keeps climbing — to about 2.500% at age 67, which is the maximum-factor age.

Compared to its Classic counterpart (2% at 55), the PEPRA 2% at 62 formula is less generous in three ways: (1) the reference age is 7 years older, (2) final compensation uses a 36-month average instead of 12, and (3) PEPRA caps the compensation that counts toward your pension. PEPRA members also pay a higher share of their own pension cost out of paycheck.

Key Facts

  • Minimum retirement age: 52 (factor 1.000%)
  • Reference age: 62 (factor 2.000%)
  • Maximum-factor age: 67 (factor ~2.500%)
  • Final compensation: highest 36-month average
  • COLA cap: 2% per year
  • Applies to: PEPRA members hired on or after 1/1/2013 without prior CalPERS service
  • Compensation cap: PEPRA limits pensionable compensation (adjusted annually)

Worked Example — Age 62, 25 Years, $8,000/Month

Benefit factor at 62: 2.000%. Times 25 years of service: 50% replacement rate. Times $8,000/month final compensation (36-month average): $4,000/month, or $48,000/year. The same person working to 67 with 30 years collects: 2.500% × 30 × $8,000 = $6,000/month, or $72,000/year — a 50% larger pension for 5 more years of work.

Why the Reference Age Is 7 Years Higher

When PEPRA was enacted in 2013, the California Legislature was responding to rising public-employee pension costs. Pushing the reference age out to 62 (and to 57 for safety) was the primary cost-control lever, alongside the compensation cap and the 36-month final-comp period. Together, these changes reduce typical PEPRA-member pension costs by roughly 30-40% compared to Classic counterparts, on average across the workforce.

Three 2% at 62 Categories

2% at 62

State Miscellaneous & Industrial

PEPRA state miscellaneous & industrial members hired on or after 1/1/2013

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2% at 62

School

PEPRA school members hired on or after 1/1/2013

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2% at 62

Local Miscellaneous

PEPRA local miscellaneous members hired on or after 1/1/2013

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All 2% at 62 Formulas

Calculator — 2% at 62 (State Miscellaneous)

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2% at 62 — Frequently Asked Questions

What is final compensation?▾
Final compensation is the average of your highest salary over a specific period, typically your highest 12 or 36 consecutive months depending on your formula. PEPRA members use a 36-month average; classic members typically use a 12-month average.
What is the difference between Classic and PEPRA?▾
Classic members were hired before January 1, 2013, or had existing CalPERS membership. PEPRA (Public Employees' Pension Reform Act) members were hired on or after January 1, 2013, with no prior CalPERS membership. PEPRA formulas generally have lower benefit factors at younger ages but the same or similar factors at older retirement ages.
What is service credit?▾
Service credit is the years (and partial years) you have worked under a CalPERS or CalSTRS covered position. One year of full-time employment equals one year of service credit. Part-time employees earn proportional service credit.
How accurate is this calculator?▾
This calculator uses the official benefit factor tables published by CalPERS and CalSTRS. The benefit factor lookup is verified against official PDF documents. However, your actual pension may differ due to factors not included in this estimate, such as exact survivor actuarial reductions, reciprocity, disability retirement, or employer-specific rules. For an official estimate, log in to myCalPERS or contact your retirement system.
What is the difference between School and State formulas?▾
School formulas apply to employees of K-12 school districts, community college districts, and county offices of education who are members of CalPERS. State formulas apply to state government employees. The benefit factors and retirement age ranges may differ between categories.
How do I find out which CalPERS formula I have?▾
Your formula is determined by your employer, your job classification (miscellaneous, safety, etc.), and your hire date. Check your myCalPERS account, your most recent annual statement, your employer's retirement contract with CalPERS, or contact your HR/benefits office. The formula name will look like '2% at 55' or '2.7% at 57' followed by a category like State Miscellaneous or Local Safety.

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Final Compensation Explained

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Disclaimer: PEPRA compensation cap and contribution requirements change annually. Confirm current values via myCalPERS or CalPERS Circular Letters before retirement planning.