CalPERS explains PEPRA changes that affect new members’ benefits
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Summary
CalPERS presented an overview of the Public Employees' Pension Reform Act (PEPRA), explaining it took effect Jan. 1, 2013; it generally applies to members who joined on or after that date, reduces some retirement formulas, raises minimum retirement ages for non‑safety members and limits compensation used to calculate benefits.
Raquel, the CalPERS presenter, summarized the Public Employees' Pension Reform Act and how it changed benefit rules for members who joined CalPERS on or after Jan. 1, 2013. "PEPRA took effect on 01/01/2013," she said, and the law introduced new rules for public employee retirement benefits.
PEPRA reduced the number of retirement formulas available to new members and established lower benefit formulas for many members. According to the presentation, PEPRA also raised the minimum retirement age for non‑safety employees from 50 to 52 and placed annual compensation limits on the pay that can be used to calculate a CalPERS retirement benefit, although it does not cap how much a member may earn overall.
The presenter explained how members determine whether they are a Classic or PEPRA member: anyone who was hired and entered CalPERS membership before Jan. 1, 2013, is a Classic member; those who first joined on or after that date are generally PEPRA members. Raquel noted limited exceptions for reciprocal service with other California public retirement systems and that employers provide a reciprocal self‑certification form to establish eligibility for reciprocity.
Members were advised to log into their myCalPERS account to view their retirement formula and other account details; the presenter directed viewers to a separate CalPERS video on retirement calculations for more detail.
CalPERS also told viewers that PEPRA led to other changes affecting broad groups of members, including elimination of the Alternate Retirement Program (ARP) for state employees and removal of Additional Retirement Service Credit (ARSC), as well as revisions to what is considered pensionable compensation.
For details specific to an individual account, Raquel said members should use myCalPERS or consult the PEPRA webpage on the CalPERS website. The presentation emphasized that statutory law controls in cases of conflict between the law and presentation materials.
