Most of what I knew about benefits as a newer CalPERS member emerged in typical fashion — from rumors and workplace conversations. Given this patchwork of understanding, I figured these secondhand remarks were just the tip of the iceberg and below the surface lay a wealth of more credible information and resources.
A few months into my public service career, a colleague reminded me of an upcoming CalPERS Benefits Education Event (CBEE) to learn more. And as the escalator carried me to my first CBEE, I carried quite a few questions of my own.
Being a CBEE newbie, I arrived early enough to familiarize myself by completing a lap around the event space and finding my classroom. The day’s schedule I printed wasn’t needed, as monitors displayed the times and locations of the classes that most interested me. One room held much activity, and when I poked my head in, I discovered several booths staffed by CalPERS, Social Security, health plans, and other experts eager to answer my questions.
CalPERS Retirement Benefits: Early Through Mid-Career
With less than a year of state service under my belt, I was excited to attend this first class. After all, you can only get so much detail from hallway conversations. CalPERS staff began by offering a survey of different retirement income sources and how my final pension would be calculated. Not all scenarios applied to me, but circumstances can change and I valued the thorough details and the learning guides that accompanied each class.
As a newcomer to not just CBEEs, but also public service, many items stuck out, including:
- A reminder that your pension is determined by a formula, not by how much you contribute, and is payable for life.
- The variety of service retirement options available for members to consider.
- The different types of service credit that eligible members can purchase and the advantages they can bring.
The CalPERS presenters were knowledgeable, and after the presentation they led a Q&A discussion where I was able to hear from other members like me. And when the time came to depart for my next class, I felt much better prepared to calculate my pension under different scenarios, as well as explore additional sources of retirement income.
Save and Invest Into Retirement
As a new CalPERS member, there’s much about saving for retirement that I have yet to learn. After a short break, I made my way to another class with the goal of leaving with at least a handful of insights, if not a watertight savings strategy for the next 30 years of my career.
Rather than a series of hard-to-understand concepts, the presenter began with a list of factors that could impact your finances during retirement, such as:
- Lifestyle and leisure activities
- Where you’ll live
- Available family support
- Possible health care expenses
After this straightforward survey of important considerations, the remainder of the class was spent exploring some of the specific aspects of retirement income sources. This income can generally be broken into three groups: the CalPERS pension, Social Security, and the 401(k), 457(b), and 403(b) deferred compensation plans available to CalPERS members.
CalPERS Health Benefits: Early Through Mid-Career
One of the biggest benefits some 1.5 million CalPERS members receive is the peace of mind that comes from having access to quality health care. I have several relatives in public service who’ve had unexpected illnesses develop, so this class held particular relevance. While CalPERS provides online resources for active member and retiree health benefits, it was nice to hear such guidance directly from an expert.
After explaining the role that the employer plays, the presenter walked us through how to determine eligibility, the nuances of evaluating and enrolling in a plan that works best, and how to navigate vesting requirements and establish health benefits into retirement.
Social Security
With the afternoon ending, my final class included details around a program I’ve contributed to much of my professional life.
Like the pension class, the presenter provided a full picture of benefit scenarios and qualification requirements. I also learned more about the benefit estimator tool that gives immediate and personalized benefit details to help account for what my Social Security could look like in retirement.
I also learned that the Social Security benefit is determined by many factors, with a major one being my retirement age. In addition to the qualification and filing requirements, more personal items to consider with Social Security include:
- Your income needs during retirement
- Other expected financial obligations
- Whether you plan to work after retirement
Looking Back to Plan Ahead
With my first CBEE in the rearview mirror, I was left with a bit of a dilemma — namely, whether I needed to have this all figured out now.
A common theme throughout the event became clear — retirement planning and taking advantage of your CalPERS benefits is a marathon, not a sprint. And like many of us who are carrying out the work of public service, it’s best to do so with the most current knowledge and tools.
With engaging experts on hand to answer any of your questions, CBEEs remain another great option to survey the landscape of your benefits. For more information on virtual or in-person events, visit CalPERS Benefits Education Event or subscribe to the Member Education Bulletin to be notified of future educational and learning opportunities.