How Does Calpers Calculate Final Compensation?

The last part of your pension calculation is final compensation. ... The final compensation calculation is based on your highest average full-time monthly pay rate over the highest 12 or 36 consecutive month period depending on your employer's contract.

How are CalPERS benefits calculated?

Your retirement benefit is calculated using a formula with three factors: Service credit (Years) multiplied by your benefit factor (percentage per year) multiplied by your final monthly compensation equals your unmodified allowance. Service Credit - Total years of employment with a CalPERS employer.

What is final compensation?

Final Average Compensation is the average compensation you earned prior to retirement. This is one element used to determine your benefit.