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11.6 State Safety A Retirement Formula (2.5% at age 55), State Safety B Retirement Formula (2% at age 55), and Public Employees’ Pension Reform Act (PEPRA) State Safety Formula (2% at age 57)/Employee Contributions/Final Compensation

  1. State Safety retirement members first employed by the State prior to January 15, 2011 are subject to the State Safety A retirement formula.
  2. State Safety retirement members first employed by the State on or after January 15, 2011 and prior to January 1, 2013 and qualify for CalPERS membership are subject to the State Safety B Retirement Formulas. The State Safety B Retirement Formula does not apply to:
    1. Former state employees who return to state employment on or after January 15, 2011.
    2. State employees hired prior to January 15, 2011 who were subject to the Alternate Retirement Program (ARP).
    3. State employees on approved leave of absence prior to January 15, 2011 who return to active employment on or after January 15, 2011.
    4. Persons who are already members or annuitants of the California Public Employees Retirement System as state employees prior to January 15, 2011.

    The above categories are subject to the State Safety A Retirement formula.

  3. Employees who are brought into CalPERS membership for the first time on or after January 1, 2013 and who are not eligible for reciprocity with another California public employer as provided in Government Code Section 7522.02(c) shall be subject to the “PEPRA Retirement Formula.” As such the PEPRA changes to retirement formulas and pensionable compensation caps apply only to new CalPERS members subject to PEPRA as defined under PEPRA.
  4. The table below lists State Safety age/benefit factors for State Safety A, State Safety B, and PEPRA State Safety retirement formulas.

     

    Age at
    Retirement

    		 State Safety A Formula
    (2.5% at age 55) G.C. 21369.1    		 State Safety B Formula
    (2% at age 55)
    G.C. 21369    		 PEPRA State Safety Formula
    (2% at age 57)
    G.C. 7522.25(b)
    Employees hired prior to January 15, 2011 Employees first hired on and after January 15, 2011 and prior to January 1, 2013 Employees eligible for CalPERS Membership for the first time on and after January 1, 2013
    50 1.700 1.426 1.426
    51 1.800 1.522 1.508
    52 1.900 1.628 1.590
    53 2.000 1.742 1.672
    54 2.250 1.866 1.754
    55 and over 2.500 2.000 1.836
    56 N/A N/A 1.918
    57 and over N/A N/A 2.000
  5. Employee Retirement Contribution
    1. As stated in Government Code Section 20683.2, State Safety members shall contribute an additional one percent (1%) retirement contribution.  Effective July 1, 2013, State Safety members shall contribute ten percent (10%) of monthly pensionable compensation in excess of $317 for retirement.
    2. Effective July 1, 2014, State Safety members shall contribute an additional one percent (1%) retirement contribution. State Safety members shall contribute eleven percent (11%) of pensionable compensation in excess of $317 for retirement.
    3. On July 1, 2019, the employee contribution rates described in 11.6(E)(2) for State Safety A, State Safety B, and PEPRA State Safety retirement formulas shall remain in effect unless CalPERS determines that (a) the total normal cost rate for the 2016-17 fiscal year has increased by 1 percent, and (b) 50 percent of that normal cost rate, rounded to the nearest quarter of 1 percent, is greater than the employee contribution rate described in 11.6(E)(2). If CalPERS determines (a) and (b) above have been met, the employee contribution rate for State Safety A and B members shall be adjusted to 50 percent of the normal cost rate rounded to the nearest quarter of one percent.  The increase to the employee contribution shall not exceed 0.5 percent.  After June 30, 2020, the employee contribution shall return to ten percent (10%) for E(1) and eleven percent (11%) for E(2).  Upon receipt of the next General Salary Increase (GSI) provided for in Article 3.26 of this agreement, the Unit 9 employee contribution rate shall return to the level established by this Section for the 2019-20 fiscal year for a period of one year from the effective date of the GSI.
  6. Final Compensation

    Final Compensation for an employee who is employed by the State for the first time and becomes a member of CalPERS prior to January 15, 2011, is based on the highest average monthly pay rate during twelve (12) consecutive months of employment.

    Final Compensation for an employee, who is employed by the State for the first time and becomes a member of CalPERS on or after January 15, 2011, is based on the highest average monthly pay rate during thirty-six (36) consecutive months of employment.