Pension Contract Amendments & Agency Updates

In 2013, we implemented mandated benefit formulas to align with the changes set forth by PEPRA. These include reduced benefit formulas and increased retirement age provisions, resulting in new defined benefit formulas for all new miscellaneous (non-safety) and safety members. At the time of the implementation, no formal contract amendment was required for our contracting agencies. However, since then, many agencies have amended their contracts to include the PEPRA language. 

If your contract has not been amended, we would like to work with your agency to update your contract to ensure that it aligns with the changes under PEPRA. To initiate the process of amending your contract, please email the Pension Contract Program staff at pensioncontracts@calpers.ca.gov.

Adding PEPRA Language to your Contract

Public agencies, including cities, counties, and special districts that contract with us and have retirement contracts established prior to 2013 are strongly encouraged to amend their contracts to incorporate updated language reflecting the Public Employees’ Pension Reform Act of 2013 (PEPRA). Although we administratively implemented PEPRA’s mandated benefit formulas for new members in 2013, many agencies’ formal contracts do not yet reference these critical statutory changes.

Why Update Your Contract to Include PEPRA Language?

• Legal Compliance and Clarity
  PEPRA introduced significant pension reforms, including reduced benefit formulas and increased retirement ages for new CalPERS members. While these provisions have been applied in practice since 2013, contracts predating PEPRA may not explicitly reference these changes. Amending contracts ensures all legal requirements are clearly documented, reducing the risk of confusion or misinterpretation regarding member benefits and eligibility.
• Administrative Consistency
  Including PEPRA language in contracts aligns formal contract terms with current CalPERS administration and practices. This consistency simplifies the administration of benefits for both your agency and us, ensuring all parties operate under the same, up-to-date understanding of member benefits. It also helps prevent discrepancies between contract language and actual benefits provided, which can complicate audits, member inquiries, and personnel decisions.
• Transparency for Employees and Stakeholders
  Clear contract language benefits current and future employees, as well as other stakeholders, by explicitly stating the retirement benefit formulas and eligibility requirements applicable to new hires. This transparency supports effective communication, helps manage employee expectations, and is important during labor negotiations or when responding to public inquiries.
• Risk Mitigation
  Outdated contract language can expose your agency to legal or financial risks if disputes arise regarding applicable benefit formulas. By updating contracts to reflect PEPRA, your agency can reduce the likelihood of costly misunderstandings or litigation related to pension benefits.
• Alignment with Best Practices
  Many public agencies have already amended their contracts to include PEPRA provisions, reflecting best practices in pension administration. Agencies that have not yet done so are encouraged to align with this standard to ensure consistency across the CalPERS system.

Amending CalPERS contracts to include updated PEPRA language is a proactive step that ensures legal compliance, administrative efficiency, transparency, and risk mitigation. We encourage your agency to work with us to update your contract to ensure alignment with current law and best practices in public pension administration.

Visit our Pension Contracts Frequently Asked Questions page for additional information. 

It's important to ensure your agency's information in our files is current. Contact us if your agency changes its physical location or mailing address. If your agency officially changes its name, notify us by providing a copy of the Board Minutes or Board Resolution containing the old name, new name, and effective date of the name change. Mail the agency name change information to our address above.

If your agency (or one or more functions of your agency) transfers to a new or existing CalPERS agency, then retirement and health benefits of active and retired members may be affected. Contact us if your agency has or will undergo a merger or reorganization.

If your agency no longer has active employees or if a member category of your agency becomes inactive, notify us.

Although there may be no active employees, your agency is responsible for sufficient funding to continue paying the retirement and death benefits to CalPERS members or beneficiaries of members already retired. Your agency is also responsible for the funding for future benefits payable to members or beneficiaries of members electing to leave their contributions on deposit with us.