California's PEPRA law sets two 2026 pension compensation caps: $159,733 for employees who coordinate with Social Security and $191,679 for those who don't.
Once a PEPRA member's salary crosses the applicable cap, both employee and employer stop making CalPERS contributions for the rest of that calendar year.
Salary above the pension cap stops building CalPERS benefits, making supplemental vehicles like a 457(b) or IRA essential for high-earning PEPRA members.
Read More: Avoid these 13 retirement mistakes before they derail your future (sponsor)
Picture two hypothetical seasoned California public employees earning nearly identical salaries. Both are covered by the California Public Employees' Retirement System, but their positions differ in one important respect: one coordinates with Social Security and the other does not. Then their pension statements expose a $31,946 difference.
#calpers #Retirement
Once a PEPRA member's salary crosses the applicable cap, both employee and employer stop making CalPERS contributions for the rest of that calendar year.
Salary above the pension cap stops building CalPERS benefits, making supplemental vehicles like a 457(b) or IRA essential for high-earning PEPRA members.
Read More: Avoid these 13 retirement mistakes before they derail your future (sponsor)
Picture two hypothetical seasoned California public employees earning nearly identical salaries. Both are covered by the California Public Employees' Retirement System, but their positions differ in one important respect: one coordinates with Social Security and the other does not. Then their pension statements expose a $31,946 difference.
#calpers #Retirement
2 months ago
