Question 1

What is final compensation?

Accepted Answer

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.

Question 2

What is service credit?

Accepted Answer

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.

Question 3

What is the difference between Classic and PEPRA?

Accepted Answer

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.

Question 4

What are Local Miscellaneous and Local Safety formulas?

Accepted Answer

Local Miscellaneous formulas apply to non-safety employees of cities, counties, and special districts that contract with CalPERS. Local Safety formulas apply to law enforcement, firefighters, and other safety employees of local agencies. Safety formulas typically have higher benefit factors and earlier retirement ages.

Question 5

How do I find out which CalPERS formula I have?

Accepted Answer

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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