How does the retirement benefit calculation work?

The retirement benefit calculation for CalPERS is based on a formula that considers three main factors: age at retirement, years of service credit, and final compensation. The formula multiplies a member's service credit by a percentage factor, which varies depending on the retirement formula chosen and the member's age. The service credit represents the accumulated years of service as a CalPERS member. Final compensation refers to the average monthly salary over a specific period, usually the highest consecutive 12 or 36 months. This average salary is then multiplied by a factor determined by the specific retirement formula and age at retirement. The result is the monthly retirement allowance. Additional considerations, such as cost-of-living adjustments and optional benefit elections, may also impact the final benefit amount. Detailed information and examples can be found on the CalPERS website.