Your CalPERS Pension
Bus drivers. Custodians. Cafeteria workers. Instructional aides. Office staff. The people who make schools function every single day. When it comes to retirement planning, this group gets treated like an afterthought industry-wide. I don't do that.
As a classified school employee you are part of CalPERS, the California Public Employees' Retirement System and the largest public pension system in the country. CalPERS serves more than 700,000 school members.
Like CalSTRS your CalPERS pension is a defined benefit. Your retirement income is calculated by a formula based on your age, years of service, and final compensation. It's a guaranteed lifetime income regardless of how long you live. That's valuable, and it's getting rarer every year.
If you joined after January 1, 2013 you are under PEPRA, the 2013 pension reform act that introduced lower benefit levels compared to longer tenured colleagues. Nearly 68% of active CalPERS members now fall under this newer formula. It is worth understanding exactly what you are entitled to and how to make the most of it.
See It In Action: Miguel's Pension Estimate
Miguel is a hypothetical classified CalPERS member under the classic 2%-at-55 formula. He is 60 years old, has 22 years of service, and his final compensation (average of his three highest years) is $58,000. Here is roughly what his pension looks like, and you can swap in your own numbers below.
Two things move this number more than anything else: how long you work, and when you retire. Even waiting a year or two can bump your age factor more than you'd expect. Whether that tradeoff is worth it for you is worth a real conversation before you lock anything in.
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Social Security. A Key Advantage Over Teachers
Most classified school employees do pay into Social Security through their CalPERS covered employment. That means at retirement you'll have both a CalPERS pension and Social Security coming in, two guaranteed income streams most people don't get.
Not every classified position pays into Social Security. A small number of districts and job classifications are Social Security-exempt, so it is worth confirming what has actually been withheld from your own paycheck rather than assuming based on your job title.
But coordinating them takes real planning. Claim Social Security at the wrong time and it can cost you tens of thousands of dollars over a long retirement. I help you figure out the right strategy for your situation.