Question 1

Is final compensation my last paycheck or an average?

Accepted Answer

It is an average. Classic CalPERS members use the average of their highest 12 consecutive months of compensation. PEPRA members use the average of their highest 36 consecutive months. The highest period does not have to be the final period — it is the highest qualifying span anywhere in your career.

Question 2

What is a benefit factor quarter-year cliff?

Accepted Answer

CalPERS benefit factors increase at quarter-year increments. Retiring three months later (e.g., at 55.25 vs 55.00) can raise your benefit factor by a small but non-trivial amount. Multiplied across your full years of service and decades of retirement, this can amount to thousands of dollars. The free CalPERS calculator on this site shows your exact factor at any quarter-year age.

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 is the minimum retirement age?

Accepted Answer

The minimum retirement age varies by formula. Most PEPRA formulas allow retirement at age 52, while classic formulas may allow retirement as early as age 50. Your benefit factor at the minimum age is typically much lower than at the reference age.

Question 5

What is service credit?

Accepted Answer

Service credit is the years (and partial years) you have worked under a CalPERS or CalSTRS covered position. One year of full-time employment equals one year of service credit. Part-time employees earn proportional service credit.

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