Common use of California Public Employees’ Retirement Clause in Contracts

California Public Employees’ Retirement. System (CalPERS) Due to implementation of the Public Employees’ Pension Retirement Act (PEPRA) CalPERS has designated members as either “Classic” or “New.” The employee designation is determined by CalPERS. New Members- Are defined as employees hired on or after January 1, 2013, and prior to that date were not members of CalPERS or a retirement system that has reciprocity with CalPERS. Retirement Formula 2% @ 62 Employee Contribution 6.25% (subject to yearly change based on ½ of normal cost as determined by CalPERS) Final Compensation Highest Three Year Average Classic Members- Are defined as employees hired prior to January 1, 2013, or were members of CalPERS or a retirement system that has reciprocity with CalPERS. Retirement Formula 2% @ 55 Employees Contribution 7% Final Compensation Single Highest year