CalPERS Retirement Benefit Calculator
Estimate your monthly and annual pension benefits
Estimated Benefit Summary
How the CalPERS Retirement Formula Works
Your California Public Employees' Retirement System (CalPERS) benefit is a defined benefit plan. Unlike a 401(k), where the benefit depends on investment performance, your CalPERS pension is calculated using a specific mathematical formula based on your career history with a participating employer.
The Three Key Factors
- Service Credit: This is your total years of employment with a CalPERS employer. It can include full-time and part-time service, as well as purchased service credit or converted unused sick leave.
- Benefit Factor: This is the percentage of your final compensation you receive for each year of service. It is determined by your "retirement formula" (e.g., 2% at age 62) and the actual age at which you retire.
- Final Compensation: This is your highest average annual salary over a specified period (typically either 12 months or 36 months, depending on when you joined CalPERS and your employer's contract).
Example Calculation
If an employee retires with the following stats:
- Service Credit: 25 Years
- Benefit Factor: 2% (0.02)
- Final Compensation: $90,000
The calculation would be: 25 × 0.02 × $90,000 = $45,000 per year (or $3,750 per month).
Important Considerations
This calculator provides an estimate of the "Unmodified Allowance," which is the maximum monthly amount payable to you. Choosing survivor benefits or other retirement options will typically reduce this monthly amount. Furthermore, your pension may be subject to federal and state income taxes, but is usually exempt from Social Security and Medicare taxes if you did not contribute to those systems during your CalPERS service.