17.2 Second-Tier Retirement Plan

The Union and the State agree to participate in the Second-Tier retirement plan as prescribed by law.

  1. Second Tier members first employed by the State and subject to CalPERS membership prior to January 1, 2013 are subject to the Pre-PEPRA Second Tier retirement formula.
  2. Employees who are brought into CalPERS membership for the first time on or after January 1, 2013 and who are not eligible for reciprocity with another California public employer as provided in

    3. Government Code section 7522.02(c) shall be subject to the “PEPRA Retirement Formula.” As such, the PEPRA changes to retirement formulas and pensionable compensation caps apply only to new CalPERS members subject to PEPRA as defined under PEPRA.

  3. The table below lists the Second Tier age/benefit factors for the Pre-PEPRA and PEPRA retirement formulas.

    4. Age at Retirement

    Pre-PEPRA Formula (1.25% at age 65)

    PEPRA Formula (1.25% at age 67)
     

    Employees first hired and subject to CalPERS Membership prior to January 1, 2013

    Employees eligible for CalPERS Membership for the first time on and after January 1, 2013

    50

    0.5000

    N/A

    51

    0.5500

    N/A

    52

    0.6000

    0.6500

    53

    0.6500

    0.6900

    54

    0.7000

    0.7300

    55

    0.7500

    0.7700

    56

    0.8000

    0.8100

    57

    0.8500

    0.8500

    58

    0.9000

    0.8900

    59

    0.9500

    0.9300

    60
  4. 1.0000
    		5.

    0.9700

    61
  5. 1.0500
    		6.
  6. 1.0100
    		7.

    62
  7. 1.1000
    		8.
  8. 1.0500
    		9.

    63
  9. 1.1500
    		10.
  10. 1.0900
    		11.

    64
  11. 1.2000
    		12.
  12. 1.1300
    		13.

    65
  13. 1.2500
    		14.
  14. 1.1700
    		15.

    66
  15. 1.2500
    		16.
  16. 1.2100
    		17.

    67 and over
  17. 1.2500
    		18.
  18. 1.2500
    		19.
  19. As stated in Government Code section 20683.2, effective July 1, 2013, Second Tier members, including ARP members, shall contribute one and one-half percent (1.5%) of monthly pensionable compensation for retirement, and will increase by one and one-half percent (1.5%) points annually. The final annual increase in the contribution rate shall be adjusted as appropriate to reach fifty percent (50%) of normal cost.