CALPERS, also known as the California Public Employees' Retirement System, is a state-run pension fund in California, United States. It is one of the largest pension funds in the country and provides retirement and health benefits to public employees and their beneficiaries. CALPERS is responsible for managing and investing the contributions made by employees and employers.
The primary objective of CALPERS is to ensure the financial security of its members during retirement by providing a stable and sustainable pension fund. It oversees the needs of over two million active and retired members from various state and public agencies, including schools, cities, counties, and special districts.
As a defined benefit plan, CALPERS guarantees a specific monthly retirement benefit based on factors such as length of service, age, and final compensation. The fund collects contributions from both employees and employers and invests them in a diversified portfolio to earn returns and grow the assets over time. These returns, along with contributions, fund the pension payments made to retirees.
CALPERS also offers healthcare and other related benefits to its members. It administers health programs to assist retirees with healthcare coverage and affordability. Additionally, it provides resources and workshops to educate members about retirement planning, investment options, and other financial matters.
Since its inception in 1932, CALPERS has played a crucial role in providing retirement security to public employees in California. It adheres to strong governance practices and maintains transparency to ensure the long-term viability of the pension fund for current and future members.
