Article 11.9 – Public Employees’ Pension Reform Act of 2013 (PEPRA)

Download the 2025-2028 MOU (PDF)

11.9 Public Employees’ Pension Reform Act of 2013 (PEPRA)

1. PEPRA Definition of “Pensionable Compensation”

   Retirement benefit for employees subject to PEPRA are based upon the highest average pensionable compensation during a thirty-six (36) month period.  Pensionable compensation shall not exceed the applicable percentage of the contribution and benefit base specified in Title 42 of the United State Code Section 430 (b).  The limit shall be adjusted annually based on changes to the Consumer Price Index for all Urban Consumers.

2. Alternate Retirement Program – New Employees

   Employees first hired on or after July 1, 2013 shall not be subject to the Alternate Retirement Program (ARP).  Existing ARP members are required to complete the twenty-four (24) month enrollment period.  Upon completion of the twenty-four (24) month period, the employee shall make contributions to CalPERS.  ARP members shall continue to be eligible for payout options beginning the first day of the 47^th month of employment and ending on the last day of the 49^th month of employment following his or her initial ARP hire date.