CalPERS FAQ: Answers to the Most Common Questions
vanessa325dejesus@gmail.comIntroduction
CalPERS members and future retirees often have similar questions about eligibility, retirement benefits, health coverage, and how the system works overall. This FAQ guide brings together the most frequently asked questions in one place, using clear and neutral explanations.
The goal of this page is informational clarity—without assumptions, instructions, or financial advice.
General Questions About CalPERS
What does CalPERS stand for?
CalPERS stands for the California Public Employees’ Retirement System.
Is CalPERS only for California employees?
Yes. CalPERS serves public employees working for participating California state and local agencies.
Is CalPERS a private company?
No. CalPERS is a public agency established by California law.
Eligibility and Membership
Who is eligible for CalPERS?
Eligibility depends on employment with a CalPERS-participating public employer and meeting membership requirements.
What does vesting mean in CalPERS?
Vesting means earning the right to a future retirement benefit after completing the required service credit.
Does part-time work count toward eligibility?
In some cases, part-time employment may count, depending on hours worked and employer rules.
Retirement Benefits
Is CalPERS a pension or a 401(k)?
CalPERS is a defined benefit pension system, not an individual retirement account.
How are CalPERS retirement benefits calculated?
Benefits are generally based on service credit, age at retirement, and a benefit factor.
Can someone retire early under CalPERS?
Some plans allow early retirement, usually with reduced benefits.
Separation From Service
What does separation from service mean?
It means employment with a CalPERS-covered employer has ended.
Does separation automatically start retirement payments?
No. Retirement requires meeting eligibility requirements and submitting an application.
Can service credit be preserved after separation?
Yes, earned service credit generally remains on record.
Health Benefits
Does CalPERS provide health insurance?
CalPERS administers health benefit programs for eligible employees and retirees through participating employers.
Are retiree health benefits guaranteed?
Eligibility depends on employer participation and plan rules.
How does Medicare work with CalPERS health plans?
For eligible retirees, CalPERS health coverage may coordinate with Medicare.
Account Access and Management
Do retirees still have online access?
Yes, retirees typically retain access to manage benefits and personal information.
Can CalPERS accounts be accessed outside California?
Yes, online access is available regardless of location.
What information can members update online?
Members may update contact details, beneficiaries, and view benefit information.
Payments and Taxes
Are CalPERS retirement benefits taxable?
They are generally subject to federal income tax. State tax treatment depends on residency.
How are benefits paid?
Payments are typically issued monthly through direct deposit.
Do benefits continue after death?
Depending on the retirement option selected, survivor or beneficiary payments may continue.
Social Security and Other Programs
Is CalPERS the same as Social Security?
No. They are separate systems with different eligibility and funding structures.
Can someone receive both CalPERS and Social Security?
Some individuals may qualify for benefits from both systems, depending on work history.
Common Planning Questions
Can someone return to public employment after retiring?
Rules vary depending on employment type and timing.
Does moving out of state affect CalPERS benefits?
Pension benefits are generally not location-dependent, but health plans may vary.
Do CalPERS rules change over time?
Yes. Rules may change due to legislation or policy updates.
Final Thoughts
This CalPERS FAQ page is designed to answer common questions clearly and accurately, helping members and researchers understand how the system works without confusion.
For individual situations, official CalPERS resources provide the most authoritative guidance.
