Calculating Your Pension
The amount of your monthly retirement benefit will depend on the following factors:
- Your age at retirement
- Your total years of service credit
- Your monthly final average compensation
- Your retirement benefit tier
- The retirement option you elected
Your retirement contributions have no effect on the calculation of your pension because VCERA is a defined benefit plan.
Calculating Your Benefit Estimate
If you are a PEPRA member, you can estimate your own retirement benefit by logging in to your VCERA Member Portal account and clicking on “Benefit Estimator.” The online system will use your current salary and service data to calculate a benefit estimate* based on the Unmodified Option, which provides the highest monthly benefit. You may also use the tables in the appendices of the Member Handbook to estimate your retirement benefit.
If you are a Legacy member, you can estimate your own retirement benefit using the Legacy Pension Calculator. To input an accurate Final Average Monthly Compensation amount in the “Compensation” field, find your Current Retirement Earnings Final amount on your paystub, multiply it by 26 (to get an annual total), and then divide the total by 12 (to get a monthly average). The retirement earnings amount is expected to be accurate as of your July 14, 2023 paycheck. You may also use the tables in the appendices of the Member Handbook to estimate your retirement benefit.
If you plan to retire within five years, please request an official benefit estimate from VCERA by completing and submitting an Estimate Request Form, available online or mailed upon request. Please obtain an official benefit estimate before making retirement decisions.
* Member Portal benefit estimates do not yet incorporate the salary data changes resulting from the Alameda Decision.
Maximum Age Factors
Age is one of the factors used in retirement benefit calculations. For calculation purposes, a member’s age increases in quarters on their birthday, and every three months thereafter. When a member is between quarters, the age is rounded down to the nearest 0.25.
If you are no longer working as an active VCERA member and reach the highest age listed below next to your benefit tier, postponing your retirement until you reach a higher age will not increase your benefit.
| Benefit Tier | Maximum Age Factor |
|---|---|
| Safety Tier 1 COLA | 55 |
| Safety Tier 7 COLA | 57 |
| General Tier 1 COLA | 65 |
| General Tier 2 and General Tier 2 COLA | 65 |
| General Tier 5 COLA, General Tier 6, and General Tier 8 COLA | 67 |
Final Average Compensation
One of the factors used to calculate your retirement benefit is your final average compensation (FAC), which is based on your benefit tier and/or hire date. The time period in which your FAC is earned is called your “measurement period.”
For Safety Tier 1 and General Tier 1 members: Highest 12 consecutive months (26 pay periods) of “compensation earnable,” as defined in Government Code section 31461.
For all other members:
- Hired prior to January 1, 2013: Highest 36 consecutive months (78 pay periods) of “compensation earnable,” as defined in Government Code section 31461.
- Hired on or after January 1, 2013: Highest 36 consecutive months (78 pay periods) of “pensionable compensation,” as defined in Government Code section 7522.34.
Vacation Buydown / Annual Leave Redemption
Government Code Section 31461(b)(2) instructs VCERA to limit the number of annual leave or vacation redemption hours that may be included in retirement compensation to the maximum redeemable hours allowed by Memorandum of Agreements (MOA) for each calendar year. As a reminder, for PEPRA members, Vacation Buydown/Annual Leave Redemption is not includable in final average compensation.
Depending on membership type, VCERA will look at the highest 12 or 36 consecutive months of compensation at retirement. Within that highest measurement period, VCERA will include the number of redeemed leave hours that the applicable MOA allows a member to redeem. For example, if a member’s MOA allows a maximum leave redemption of 200 hours per calendar year, then VCERA will only include up to 600 hours of redeemed leave in a 36-month measurement period for purposes of retirement compensation. Please refer to your appropriate MOA to locate your specific annual vacation redemption limit.