Retirement Compensation

Contributions Based on Hire Date


The City contracts with CalPERS for retirement benefits at the 2.5% at 55 formula, for employees hired prior to February 27, 2011. All employees hired after this date, are subject to the newly adopted formula of 2% at 60. Please see below for a complete schedule of the retirement contributions made to CalPERS.


New Members


Effective January 1, 2013, AB 340: Public Employees Pension Reform Act of 2013 will add the new pension formula of 2% at 62 for all new members. A new member is defined as:
  1. An individual who becomes a member of a public retirement system for the 1st time on or after January 1, 2013 and who is not a member of another public retirement system prior to that date,
  2. An individual who becomes a member of a public retirement system for the 1st time on or after January 1, 2013 and who is a member of another public retirement system prior to that date, but was not subject to reciprocity under PERS or CERL,
  3. An individual who was an active member in a retirement system and who, after a break in service of more than 6 months, returned to active membership in that system with a new employer.
Employees who are hired after January 1, 2013 and meet the new member eligibility criteria will be enrolled at the 2% @ 62 benefit level.


Current CalPERS Contribution Rates



 Contribution Type  2.5% @ 55  2.0% @ 60  2.0% @ 62
City Contribution 10.624% 8.008% 6.724%
Employee Contribution* 8.000% 7.000% 6.500%
Total Contribution 18.624% 15.008% 13.224%
       
*City Pickup of Employee Contribution  8.000%  0.000%  0.000%