Retirement Benefits

New Service Credit Payment Options at Retirement

Service Credit Purchase

If you elect to purchase CalPERS service credit on or after January 1, 2020, the full amount must be paid by your retirement date. If you are unable to pay the balance by retirement, your monthly retirement benefit can be reduced by the actuarial equivalent of your unpaid balance. The actuarial equivalent reduction, known as AER, will enable you to continue to receive the benefit of your increase. The earlier in your career you elect to purchase service credit, the more time you will have to pay the balance.

Start Early

Start the process of purchasing service credit early in your career and give yourself more opportunities to pay the balance in full prior to retirement. Purchasing early will also cost less and ensure you receive the full benefit of the service credit you are purchasing in retirement.

Easy to Apply

We have many different service credit options that you can elect to purchase. Once you review the eligibility requirements, simply submit your completed request form. If you are eligible, we will mail you an election package. The election package provides you with easy-to-follow instructions to ensure the election process is simple and straightforward. We also provide a checklist in the election package to help guide you through the process of completing the election.

Visit our website for more information, and to view all of our service credit publications and request forms. You can also use our online Service Credit Cost Estimator to learn what the cost may be for our most popular service credit types.