What is that PERS deduction on my check?
All employees of the District who have worked (or will work) more than 1000 hours in one fiscal year become automatically enrolled in the CalPERS Retirement Program. Once enrolled, 7% of your pretax income gets deferred to this program which once vested, will provide a lifetime retirement benefit determined by a set formula to you. An employee becomes vested after they have accumulated five (5) years of service credit. Service credit is calculated as time worked from June 1 to July 31 of a year. Part-time members earn service credit in proportion to the number of hours worked. Each year, CalPERS sends out a CalPERS Annual Member Statement that reflects your service credit as of each June 30th.
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, click here to view the retirement planning checklist
- 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.
To access more detailed information about your CalPERS Retirement Benefits, click on the icon below to redirect you to the official CalPERS website.