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Pension Reform FAQ
CalPERS Pension Reform
became law on January 1, 2013. This guide will
provide a brief overview of the pension changes and the specific
benefits our PERS members receive.
PEPRA applies to all "New Members" of
CalPERS. A New Member is a new hire brought into CalPERS membership for
the first time on or after January 1, 2013, and who has no prior
membership in or reciprocity with any California Public Retirement
system. A New Member also includes previous CalPERS members who are
rehired by a different CalPERS employer
after a break in service of greater than six months.
If you previously worked for Yuba
County and were a member of CalPERS, you will not be considered a
New Member, regardless of the length of your break in service. However,
if you were an extra-help employee or part-time (less than 20
hours/week) employee, and you have never been a member of CalPERS, you will be
considered a New Member if you are enrolled in CalPERS on or after
January 1, 2013.
PEPRA will not apply to Extra-Help
employees who are not CalPERS members. PEPRA, for the most part, does not apply to
current CalPERS members, who are referred to
as "Classic Members." Classic Members receive the pension benefits that were in place
on December 31, 2012.
Human Resources will help you determine
if you are a New or Classic Member.
Classic Members fall under the
retirement formulas of 2% at 55 for Miscellaneous and 2% at 50 for
Safety. Final compensation is based on the highest year. Classic members
will continue to pay the current retirement contribution rate as set by
law, currently 7% for Miscellaneous and 9% for Safety.
New Members fall under the new retirement formulas of 2% at 62 for
Miscellaneous and 2.7% at 57 for Safety. The final compensation is based
on a 3-year highest average. Some categories of compensation will not be
considered "pensionable" and will not be included in the final pension
calculations. Additionally, pensionable compensation will be
capped at 120% of the Social Security rate and adjusted annually for
inflation. New members are required to pay 50% of the "normal cost"
retirement contribution rate as determined by CalPERS annually, which
may be higher than the rates paid by current CalPERS members.
After January 1, 2013, neither Classic
Members nor New Members can purchase Additional Service Credit (air
time). Felony Convictions will result in a forfeiture of pension
Individual Impact by Union Membership
DSA/MSA members currently receive Employer Paid Membership Contributions
(EPMC). Under PEPRA New Members of these associations will only receive
EPMC until June 30, 2014, when they will no longer be eligible to
receive this benefit. Classic Members will continue to receive EPMC
unless otherwise negotiated.
YCEA, YCPPO, DDAA, Confidential and Unrepresented members
do not receive EPMC. Therefore, there is no impact.
Benefit Comparison at a Glance
Employment After Retirement
PEPRA increases the restrictions on post-retirement public employment.
These changes affect both New and Classic Members. A retiree may not
return to extra-hire employment for 180 days from their last retirement
date and 180 days from receiving a golden handshake (if applicable). If
the retiree has received any unemployment benefits arising from public
employment they are ineligible for employment for twelve (12) months
from the last date of received benefits. There are very limited
exceptions to these requirements. Safety positions and appointments
going before the Board of Supervisors may be exempted only from the 180
day from retirement requirement but may not be exempted from the golden
handshake or unemployment requirement. Retirees will be required to
certify their eligibility for employment.
An Equal Opportunity / Affirmative Action Employer
Human Resources and Organizational Services • 915 8th. St., Suite 113, Marysville, CA
(530)749-7860 • Fax: (530)749-7864
©2009 County of Yuba, CA