CalPERS is the name of a retirement program offered by the state government of California. The moniker is short for California Public Employee’s Retirement System and is only available for people who work for the state of California.
About 586,000 people receive a monthly benefit from the CalPERS retirement system, according to the state
. There are more than a million active and inactive members. The fund covers employees of state agencies as well as teachers throughout the state. There are more than 3,000 employers that offer the CalPERS benefit to employees. The average monthly allowance for retirees is about $2,700. CalPERS also offers health plans for both active members and retirees.
Free Retirement Calculator: When Can You Retire? — Click Here to Find Out
In April of 2015, CalPERS instituted a funding increase of 6 percent to the pension fund. Reuters reported growth in salaries
and longer lifespans were factors in the change. In a statement to Reuters, Richard Costigan, the chair of the finance and administration committee said, “as the fund matures, and the retired population grows, it’s important that the rates reflect the changing demographics of our members.” The funding of pensions has become a big issue in state and local governments. CalPERS is only about 77 percent funded.
The California Policy Center estimated the average annual pension amount for a CalPERS retiree to be about $30,400 in 2012. Those estimates are based on an average years of service slightly lower than 20. For retirees who spent their entire career in the public sector, those numbers go up to about $70,000 for someone who worked from age 22 to age 64.
The California Policy Center noted
that while the average pension amount may seem low, the full career pension is appropriate, and perhaps even better than the options available to private-sector workers.
How Soon Can You Retire? Free Test Shows You When — Click Here
© 2021 Newsmax. All rights reserved.