What types of retirement plans are offered by CalPERS?

The California Public Employees Retirement System, commonly known as CalPERS, offers a variety of retirement plans designed to provide benefits for members employed by public agencies in California. The primary plan available to most members is the Classic pension plan, which is a defined benefit plan. This means that the retirement benefits are determined by a formula that typically considers factors such as years of service, age at retirement, and final compensation. Members in this plan benefit from a predictable income during retirement. In addition to the Classic pension plan, CalPERS also offers the PEPRA (Public Employees' Pension Reform Act) plan, which applies to new employees hired after January 1, 2013. The PEPRA plan has different benefit formulas and contribution rates compared to the Classic plan. This reform aims to ensure the sustainability of the pension system while still providing valuable retirement benefits. Moreover, CalPERS provides additional options such as the 457 Deferred Compensation Plan, which allows members to contribute additional funds into a tax-advantaged retirement savings account. This is a voluntary plan designed to complement members’ primary pension benefits. Furthermore, CalPERS offers health benefits and programs designed to support members throughout their career and into retirement. For specific details about the types of plans available, eligibility requirements, and contribution levels, members are encouraged to refer to the official CalPERS website, where comprehensive information is regularly updated, including options for contacting them for more personalized inquiries.