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PERS
The California Public Employees’ Retirement
System (PERS) was established by state law in 1932 to provide retirement
benefits for state employees. In 1939, public agency and non-teaching
school employees were allowed to participate. PERS membership is divided
approximately in thirds among current and former employees of the state,
schools, and participating public agencies.
PERS is a defined benefit retirement plan. It
provides benefits based on a member’s years of service, age, and highest
compensation. In addition, benefits are provided for disability and death,
with payments in some cases going to survivors or beneficiaries of
eligible members.
Membership
Many non-STRS employees enter PERS membership
immediately upon employment; however, there are some employees who must
work a certain number of hours/days before they can qualify for
membership.
Contributions
Members contribute 7% of their creditable
compensation into their PERS account. PERS members are also subject to
F.I.C.A. (Social Security) tax and Medicare tax. At the end of each fiscal
year, interest is credited to the accumulated contributions and interest
in each member’s account. The District contributes a percentage of each
employee’s creditable compensation; however, employer contributions are
not credited to individual member accounts. Employer contributions help
fund the benefits payable to members and their beneficiaries.
Service Credit
Service credit is the accumulated period of
time, in years and partial years, during which you receive creditable
compensation for service as a member. Annual Statements are distributed to
all members each fall and is one of your most important PERS records. Make
sure you examine your statement carefully for accuracy and report any
discrepancies immediately for correction. Also, you may be eligible to
purchase service credit for past employment or redeposit previously
withdrawn contributions. Additional service will be granted for any unused
sick leave; however, sick leave credit cannot be used to meet eligibility
requirements for service retirement.
Retirement
The earliest age at which you can retire for
service with a monthly benefit is age 50 with at least 5 years of service
credit. Your retirement allowance is calculated using the following
formula:
Years of Service X Age Factor (2% at age
55) X Final Compensation = Retirement Allowance (Unmodified)
The age factor is the percent of pay to which
you are entitled for each year of service credit. This percentage is
determined by your age at retirement. Final compensation is the highest
average annual compensation earnable by a member during any period of
three consecutive years of paid employment covered by PERS.
Termination/Refund
Your PERS member contribution plus the
accumulated interest, are refundable upon termination from all PERS
covered employment. However, a refund of your contributions terminates
your PERS membership, and you will not be eligible for any retirement
benefits. Partial refunds are not permitted and employer contributions are
not refundable. If you withdraw your contributions and interest before age
59 ½, you may be subject to income tax and a 10% federal excise tax.
Contact PERS for more information.
Additional Information
Consult PERS publication "School Members 2% at
55" for additional information including the following:
Or PERS website:
www.calpers.ca.gov (Check out the
Retirement Benefits Calculator!)
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