Question 1

What is the difference between Classic and PEPRA?

Accepted Answer

Classic members were hired before January 1, 2013, or had existing CalPERS membership. PEPRA (Public Employees' Pension Reform Act) members were hired on or after January 1, 2013, with no prior CalPERS membership. PEPRA formulas generally have lower benefit factors at younger ages but the same or similar factors at older retirement ages.

Question 2

Is Classic or PEPRA better?

Accepted Answer

Classic formulas generally produce larger pensions at the same age and service because their benefit factors are higher and they use a 12-month final compensation period instead of 36 months. You don't get to choose — your hire date and prior CalPERS membership determine which set of formulas you fall under. PEPRA members hired on or after 1/1/2013 also contribute more of their own salary toward their pension.

Question 3

What is final compensation?

Accepted Answer

Final compensation is the average of your highest salary over a specific period, typically your highest 12 or 36 consecutive months depending on your formula. PEPRA members use a 36-month average; classic members typically use a 12-month average.

Question 4

What are the survivor benefit options?

Accepted Answer

CalPERS offers four retirement options: Unmodified (no survivor benefit, highest monthly payment), 100% Survivor (your beneficiary receives the same monthly benefit after your death), 75% Survivor, and 50% Survivor. Choosing a survivor option reduces your monthly pension. The reduction depends on your age and your beneficiary's age at retirement.

Question 5

Which survivor option should I pick?

Accepted Answer

There is no single right answer — it depends on your beneficiary's age, your beneficiary's expected income without your pension, and your own life expectancy. The 100% survivor option costs roughly 12.25% of your monthly check but guarantees your beneficiary the same payment for life. The 50% survivor option costs roughly 6.5% and continues half. The unmodified option pays the most but ends at your death. Run all four side by side in the calculator's survivor selector.

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