CalPERS is a pension system that pays retired public employees in California

CalPERS — the California Public Employees' Retirement System — is a government pension fund that provides monthly retirement income to people who worked for California state agencies, cities, counties, schools, and special districts. If you worked in a public job in California and paid into CalPERS, you receive a pension check for life once you retire and meet the age and service requirements.

CalPERS is not Social Security. It is a separate pension system run by the state of California specifically for public employees. Your employer and you both contributed money to your CalPERS account while you worked. That money was invested, and those investments — along with your contributions — fund your pension when you retire.

CalPERS serves roughly 2 million members: current employees, retirees, and survivors of deceased members. The system covers teachers, police officers, firefighters, administrative staff, and many other public sector roles across California.

Key Takeaways

  • CalPERS is a pension system for California public employees, not a federal program, and it pays a monthly benefit for life after you retire.
  • You and your employer both contributed to your CalPERS account during your working years, and those contributions plus investment returns fund your pension.
  • Your pension amount depends on your age at retirement, how many years you worked, and your final average salary — not on how much you personally contributed.
  • CalPERS also offers disability benefits and survivor benefits to family members if you die before or after retirement.
  • You can check your CalPERS account status and estimate your pension amount through the CalPERS website or by contacting them directly.

How your pension amount is calculated

Your CalPERS pension is based on three main factors: your age when you retire, how many years you worked in a CalPERS-covered job, and your final average salary. The formula multiplies these together to produce your monthly benefit.

The exact formula varies depending on when you were hired and what type of job you held. For example, a police officer hired before 2013 may have a different formula than a school district employee hired after 2013. CalPERS publishes the specific formulas for each job category on its website, and you can request a personalized pension estimate from CalPERS at any time.

Your final average salary is usually the average of your highest 12 or 36 months of pay, depending on your hire date and job type. Overtime, bonuses, and certain other compensation may or may not count toward this average — the rules differ by employer and job classification.

When you can start receiving your pension

The age at which you can retire and begin receiving your CalPERS pension depends on your hire date and job type. Most employees can retire at age 50 with 5 years of service, though some job categories — such as safety workers — have different age and service requirements.

If you retire before your "normal retirement age," your monthly pension is reduced. If you wait until after your normal retirement age, your monthly pension increases. CalPERS can tell you the exact reduction or increase that applies to your situation.

You do not have to retire at a specific age. You can work as long as you want, but once you reach the age and service requirements, you can choose to start your pension whenever you wish.

Survivor and disability benefits

If you die while still working for a CalPERS employer, your family may be may have access to to a survivor benefit. The amount depends on your age, years of service, and salary at the time of death. A surviving spouse or domestic partner may receive a monthly benefit, and dependent children may also receive benefits until they reach a certain age.

If you become disabled and cannot work, CalPERS offers a disability benefit. You must have at least five years of service and meet CalPERS's medical definition of disability. The benefit amount is calculated differently than a regular retirement pension and depends on your age and service credit at the time you become disabled.

How to check your CalPERS account and estimate your pension

You can create an online account on the CalPERS website to view your service credit, contribution history, and current account balance. CalPERS also provides a pension calculator tool that lets you estimate what your monthly benefit would be under different retirement ages and scenarios.

If you prefer to speak with someone, you can contact CalPERS by phone or visit a local CalPERS office. CalPERS staff can answer questions about your specific account, explain how your pension is calculated, and provide a formal pension estimate if you request one.

It is a good idea to check your CalPERS account every few years to make sure your service credit and salary history are recorded correctly. If you spot an error, you can ask CalPERS to investigate and correct it.

What happens to your pension if you leave your job

If you leave a CalPERS-covered job before you are old enough to retire, you have options. You can leave your money in CalPERS and let it grow until you reach retirement age, at which point you will receive a pension based on your years of service. You can also withdraw your own contributions (though not the employer contributions or investment earnings) if you leave California public employment permanently.

If you move to another CalPERS-covered employer in California, your years of service combine, so you build toward your pension across multiple jobs. If you work for a non-CalPERS employer or move out of state, your CalPERS account stays frozen until you reach retirement age.

CalPERS and Social Security

CalPERS and Social Security are separate systems. Some CalPERS members also receive Social Security, while others do not, depending on whether their public job was covered by Social Security.

If your CalPERS job was not covered by Social Security, you may be subject to the Government Pension Offset or Windfall Elimination Provision if you also have Social Security benefits from other work. These rules can reduce your Social Security benefit. The Social Security Administration can explain how these rules apply to your specific situation.

Frequently Asked Questions

Can I get my CalPERS money back if I never retire?

You can withdraw your own contributions if you leave California public employment and do not transfer to another CalPERS employer. However, you cannot withdraw the employer contributions or investment earnings. If you leave your money in CalPERS, it will be paid to you as a pension starting at your retirement age, or to your beneficiaries if you die before then.

What is the difference between CalPERS and Social Security?

CalPERS is a pension system for California public employees only. Social Security is a federal program for workers across all industries. Some public employees pay into both systems; others pay into CalPERS only. The two programs calculate benefits differently and have different rules about when you can start receiving money.

How do I know if my employer is part of CalPERS?

If you work for a California state agency, city, county, school district, or special district, your employer is likely part of CalPERS. You can search the CalPERS website for your employer's name, or you can ask your human resources or payroll department whether your job is CalPERS-covered.

What happens to my CalPERS pension if I move out of California?

Your CalPERS pension continues to be paid to you no matter where you live. CalPERS will mail your check or deposit it directly to your bank account anywhere in the United States or abroad. Moving out of state does not affect your pension amount or your may be able to access to receive it.

Can I work part-time after I start receiving my CalPERS pension?

Yes, you can work part-time or full-time after you start your pension. However, if you return to work for a CalPERS employer, there are limits on how much you can earn before your pension is reduced. CalPERS calls this the "post-retirement employment limit," and the rules vary by job type and hire date. Contact CalPERS to learn the specific limit that applies to you.