Whether you’re new to CalPERS or have been a member for years, it’s always wise to brush up on the basics of your benefits. This quiz is designed to help you learn more about key CalPERS topics in a fun, easy-to-follow way.
From service credit to retirement planning, see how much you know—and learn along the way.
- True or False: All CalPERS members have the same retirement formula.
A. True
B. False - What is a beneficiary designation for?
A. Selecting your health plan
B. Choosing your retirement date
C. Naming who may receive benefits if you die before or after retirement, depending on the benefit
D. Changing your service credit - If you leave a CalPERS-covered job and later return, what is one reason your prior CalPERS history matters?
A. It guarantees a higher salary
B. It resets your age
C. It changes your name on file automatically
D. It may affect your service credit and retirement account history - True or False: Your CalPERS retirement benefit is based only on how much money you contribute.
A. True
B. False - What is “final compensation” generally used for?
A. It helps determine your retirement benefit calculation
B. It determines your beneficiary
C. It sets your service credit total
D. It decides whether you are an active member - “Service credit” is most like your retirement mileage. What does it track?
A. How many times you’ve changed jobs
B. How many sick days you’ve used
C. How long you’ve been in a CalPERS-covered position
D. How many paychecks you’ve received total - Why is it useful to understand your retirement formula before you’re close to retirement?
A. It guarantees the highest possible benefit
B. It helps you estimate your future benefit and plan accordingly
C. It changes your current salary
D. It removes the need to review your account - Which statement is most accurate about member contributions?
A. They are part of the retirement system, but they do not by themselves determine the full pension benefit
B. They are the only thing used to calculate retirement
C. They replace service credit
D. They are optional for all members - True or false: My CalPERS retirement benefits are subject to community property division, meaning they can be divided in a divorce or legal separation.
A. True
B. False - Which one sounds like something a CalPERS member should know about?
A. Service credit
B. Final compensation
C. Beneficiary designation
D. All of the above
Answers
- B—False. CalPERS member retirement formulas vary by membership category. Common formulas include 2% at 55 for State Miscellaneous and Industrial members, 2% at 55 for School members, 3% at 60 for Local Miscellaneous members, 3% at 50 for Safety members, and 2% at 62 for PEPRA Miscellaneous members.
- C—Your beneficiary designation names who may receive benefits if you die before or after retirement, depending on the benefit. Learn more in our article, Who Is Your Beneficiary, and Are They In the Loop?
- D—If you leave a CalPERS-covered job and later return, your prior CalPERS history matters because it may affect your service credit and whether your retirement account history continues from where you left off. If you withdrew your contributions when you left, you may need to redeposit them to re-establish that service credit.
- B—False. CalPERS is a defined benefit plan, meaning your retirement benefit is calculated using a formula based on factors like age, years of service, and pensionable compensation. In other words, your pension is not just based on how much you contributed—it’s based on the plan’s benefit formula.
- A—Final compensation is your highest average annual compensation during a qualifying period of employment. For most members, CalPERS uses either a consecutive 12-month or 36-month period, depending on the retirement formula and membership category. CalPERS uses your full-time pay rate, not your earnings.
- C—Service credit, or time worked, is your total CalPERS service time, including partial years, and it’s one of the key factors used to calculate your retirement benefit.
- B—It’s useful to understand your retirement formula before retirement because it helps you estimate your future benefit and plan ahead. CalPERS calculates a service retirement pension using factors such as service credit, benefit factor, and final compensation. Knowing how those pieces work together can help you make more informed decisions about when to retire and what your benefit may look like.
- A—Member contributions are one part of how CalPERS retirement benefits are funded, but they do not fund the benefit alone. The defined benefit pension plan is funded by member contributions, employer contributions, non-employer contributions, and investment earnings.
- A—True. In California, anything you earn or acquire during your marriage or registered domestic partnership—including money, retirement benefits, property, and assets—belongs equally to both partners. These assets are considered community property. If the relationship ends in divorce or legal separation, these assets, including your retirement benefits, may be divided between you and your spouse. Learn more in our article, Divorce and Your CalPERS Pension: Simple but Not Easy.
- D—From naming your beneficiary in the event of your passing to understanding how service credit and final compensation affect your retirement benefit, these CalPERS basics can help you become a more informed and empowered member.