How do pensions for California’s public employees work? It started with the County Employees Retirement Law of 1939—a big win for public workers back in the day. The law standardized factors for how counties calculated pensions an provided a financial cushion for public servants when they retired. This move made working in public service more appealing and built the foundation for what would become one of the largest pension systems in the U.S.
Fast-forward to the 2000s, rising pension costs from were putting pressure on the state’s budget. PEPRA (Public Employees' Pension Reform Act) was introduced in 2013, which shook things up. PEPRA wasn’t about getting rid of pensions—it was about keeping them sustainable. The law raised retirement ages for new hires, required employees to pitch in more toward their pensions, and put a cap on the maximum salary used to calculate benefits. It prevented final-year "spikes" in compensation and made employees' pension based on the average of the highest three years of pensionable compensation instead.
So, while the 1939 County Act gave public employees in California the security of knowing they'd be taken care of after a lifetime of service, PEPRA stepped in decades later to make sure that promise could continue for future generations.
So, with all these changes over the decades—from the 1939 County Act to PEPRA—pension calculations can feel overwhelming. How do you know what your retirement will actually look like? That’s where we come in.
Advanced Pension's calculator is designed to simplify that process for you. Whether you’re a long-time employee nearing retirement or just starting out, our tool takes all the key factors into account: your years of service, salary, and the specific rules for each system. We do the math to report a single, understandable number.
Pensions and planning for retirement don't have to be hard or intimidating. Register for free today and get started.