Retirement System Sustainability

Established in 1932, the California Public Employees' Retirement System (CalPERS) is a defined benefit system. Members include employees of state agencies, cities, schools, and other local public agencies. At retirement, an employee who vests in the system, typically five years of service, is entitled to collect a monthly payment for life. Below is an overview of the pension system, as well as related news articles, educational resources, and tools. 

Pension Outlook Tool

CalPERS' Pension Outlook tool can help cities plan and budget pension costs with easy-to-understand results and charts. Using the tool, city officials can view the projected funded status and required employer contributions for pension plans in different potential scenarios for up to 30 years into the future. Specifically, it can answer questions such as: 

  • When is my plan expected to increase its funded status?  
  • What happens to my required contributions in a down market?  
  • How does the discount rate assumption affect my contributions?   
  • What is the impact of making an additional discretionary payment to my plan?
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