CalPERS explains how pensions are funded, member benefits and online tools
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Summary
In an educational video, Raquel, a CalPERS presenter, outlined how the California Public Employees Retirement System funds pensions (investment earnings, employer and member contributions), described member categories and benefits, and demonstrated resources including myCalPERS and member education.
Raquel, a presenter for CalPERS, summarized how the California Public Employees Retirement System manages retirement benefits and where members can find resources to plan and manage their accounts. She said CalPERS serves more than 2,000,000 members and manages lifetime monthly pensions for eligible retirees.
The video explained CalPERS is a defined benefit plan under Internal Revenue Code section 401(a) and that members’ pensions are calculated using three factors: years of service credit, a benefit factor and final compensation. "CalPERS stands for the California Public Employees Retirement System, and we manage your pension," Raquel said.
Why it matters: CalPERS directly affects millions of current and former public employees in California and provides retirement, health, disability and survivor protections that can replace or supplement private benefits. The system’s funding mix — what pays for retirement benefits — determines employer costs, contribution rates and long-term fund health.
Key funding details and membership rules "Contrary to popular belief, taxpayers do not cover the full cost of public pensions," Raquel said, and she broke funding into three parts. Citing CalPERS' June 2024 pension book, she said investment earnings make up the largest share ("Investment earnings, 55¢"), followed by employer contributions (34¢) and member contributions (11¢). The presenter emphasized that employer contribution rates are set by periodic actuarial valuations.
Raquel also explained contributions visible on pay stubs are mandatory and that CalPERS does not offer loans or early withdrawals. She said members who choose to refund their contributions forfeit CalPERS membership and the associated lifetime pension and retiree benefits.
Programs and eligibility The video described member classes: state miscellaneous, state industrial, and state safety for state employees; school employees (non‑teaching staff) for school members; and public agency members (local miscellaneous and local safety) for employees of cities, counties and special districts that contract with CalPERS. CalPERS may provide employer-contracted health benefits (state and CSU employees are eligible; school and public agency employees are eligible only if their employers contract for health coverage), death and survivor benefits, and disability or industrial disability retirement where criteria are met.
Supplemental savings and tools Raquel outlined CalPERS’ 457 deferred compensation plan as a tax‑deferred supplemental savings option for eligible active employees and pointed viewers to myCalPERS for personalized account information. She demonstrated logging into myCalPERS, noting users can view retirement formulas, service credit, balances, enroll in education classes, schedule appointments at one of eight regional offices and send secure messages. She said CalPERS typically responds to secure messages within five business days.
Resources and legal note The presenter directed members to calpers.ca.gov for calculators, forms, publications (PUB 3, PUB 4 and PUB 5 by membership classification) and member education materials and said many resources are available without a username or password. The video is also available on the CalPERS YouTube channel. Raquel closed by noting that CalPERS is governed by the Public Employees Retirement Law and that, where the law conflicts with the video information, the law controls.
The presentation concluded with a subscription option for a member education newsletter, an invitation to complete a short evaluation, and information on how to enroll in classes or schedule appointments at regional offices.
