10 months ago
CalPERS releases the annual Facts at a Glance each fiscal year to provide members, stakeholders, and the public with a wide range of data and information about the state of the pension system.
Here are five facts to know:
- The average pension for all service retirees, beneficiaries, and survivors is $38,292 per year, while service retirees receive $41,040 per year. New retirees who just retired in FY 2021-22 receive $42,828 per year.
- Overall, 57% of all CalPERS service retirees receive less than $3,000 a month. And only 5.7% of CalPERS service retirees receive pensions of $100,000 per year or more; they’re usually executives who hold seats in either city or county offices, or are physicians, or senior managers for police and fire departments.
- Unlike the private sector, about 33% of CalPERS retirees don’t coordinate with Social Security for benefits. Their CalPERS pension may be their sole source of retirement income.
- The average retirement age for all service retirees is 58.8, while the average years of service is more than 20.
- Pensions are funded by both the employees who contribute every month out of their paycheck and the employer contributions, which are invested for fund growth over time. Some workers currently contribute more than 16% of their paycheck.
Learn more about CalPERS pensions by reading Facts at a Glance Pension & Retirement (PDF). You can also read our Facts at a Glance on Investment & Pension Funding (PDF), Health Benefits (PDF), and About CalPERS (PDF).
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As an expert in retirement benefits and pension systems, I bring a wealth of knowledge and experience to shed light on the intricacies of CalPERS, the California Public Employees' Retirement System. My understanding extends beyond surface-level information, delving into the nuanced details that make the system unique and noteworthy.
The information provided in the article titled "Retirement Benefits" from 10 months ago is a comprehensive overview of CalPERS, and I'm well-versed in decoding the key concepts highlighted. Let's break down the essential points:
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Average Pension Figures:
- The article mentions that the average pension for all service retirees, beneficiaries, and survivors is $38,292 per year. Additionally, service retirees receive $41,040 per year, while new retirees in FY 2021-22 receive $42,828 per year. This data reflects the financial landscape of CalPERS and underscores the economic support provided to retirees.
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Income Distribution:
- A noteworthy statistic reveals that 57% of all CalPERS service retirees receive less than $3,000 a month. Moreover, only 5.7% receive pensions of $100,000 or more. This information is crucial in understanding the income distribution among CalPERS beneficiaries, with a spotlight on high-income earners, who are often executives, physicians, or senior managers in public service.
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Social Security Coordination:
- The article emphasizes that approximately 33% of CalPERS retirees do not coordinate with Social Security for benefits. This distinct characteristic sets CalPERS apart from the private sector, highlighting that a significant portion of retirees relies solely on their CalPERS pension as the primary source of retirement income.
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Average Retirement Age and Years of Service:
- The average retirement age for all service retirees is stated as 58.8, with an average of more than 20 years of service. This information provides insight into the typical career trajectory of CalPERS members, illustrating the commitment and duration of service leading to retirement.
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Pension Funding Mechanism:
- The article explains that pensions are funded by both employee contributions and employer contributions, which are then invested for fund growth over time. Additionally, it mentions that some workers contribute more than 16% of their paycheck. This illuminates the collaborative effort between employees and employers to sustain the pension system and ensure its long-term viability.
To delve deeper into the intricacies of CalPERS pensions, the article suggests exploring additional resources, such as "Facts at a Glance on Investment & Pension Funding," "Health Benefits," and "About CalPERS." These resources likely provide a more comprehensive understanding of the pension fund's structure, investment strategies, and overall organizational framework.
