CalPERS Retirement Benefits
CalPERS offers a "defined benefit" plan which provides benefits that are calculated using a "defined formula," rather than contributions and earnings to a savings plan. Retirement benefits are calculated using a member's years of service credit, age at retirement, and final compensation (average salary for a defined period of employment). There are a variety of retirement formulas that are determined by the member's employer (State, school, or local public agency); occupation (miscellaneous (general office and others), safety, industrial, or peace officer/firefighter); and the specific provisions in the contract between CalPERS and the employer.
There are three types of retirement offered:
- Service retirement or "normal" retirement
- Disability retirement for members who can no longer perform their jobs due to illness or injury
- Industrial disability retirement for safety members, or those members whose employer has contracted for industrial disability benefits, whose job-related injuries or illnesses resulted in disability, making them unable to continue working.
CalPERS also provides death benefits for active and retired members paid to eligible beneficiaries or survivors.