CLASSIFIED EMPLOYEES with questions about the new Public Employees’ Pension Reform Act of 2013 may find answers on the Frequently Asked Questions page of the CalPERS website. Here are some answers to common questions.
The new law requires that new employees of public schools and community colleges contribute at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher.
When it comes to buying additional service credit, a member must have five years of credited CalPERS service and CalPERS must receive his or her application by the December 31 deadline.
The provision that allows a CalPERS member to convert sick leave to service credit does not change, but sick leave payouts will not count toward pensionable compensation for new members.
The new law doesn’t change how public employers treat special compensation for current employees, but it does define pensionable compensation for new members differently from compensation earnable, which applies to current employees.
Find the Frequently Asked Questions here. See how districts determine the “50 percent of the total normal cost” for current and new members by downloading the pdf on the CalPERS site here.