A pension is not one decision. It is four decisions stacked on top of each other.
Which retirement system you are in determines your age factor. Your age at retirement determines your benefit multiplier. Your survivor option choice determines how much your spouse keeps if you die first. And whether you take Member-Only or a Modified option determines whether you need life insurance to replace the survivor benefit. Capital Wealth runs all four for you — CalSTRS, CalPERS, LACERA, LACERS, UCRP, and NEAP (IBEW Electrical).
Step One · Pick Your System
Which pension plan are you in?
The math works differently for each California retirement system. Click your plan below. Each shows the official age factor table and survivor options, then feeds the calculator further down the page.
Formula Final Comp × Service Years × Age FactorNormal retirement Age 55 w/ 5 yrs serviceMax factor 2.4% at 63
CalSTRS 2% at 60 — Classic
CalSTRS 2%@60 covers California public school teachers (K-12 and community college) hired before 1/1/2013. Age factor hits 2.0% at age 60. The Career Factor bonus of 0.2% applies to 30+ years of service, capped at 2.4%. Applied to Final Compensation (highest 12 months for members with 25+ years, else highest 36 months) multiplied by years of service credit. Teachers hired on/after 1/1/13 are on the 2%@62 PEPRA tier — click that card for the PEPRA schedule.
Age Factor Table — CalSTRS 2% at 60
Retirement Age
Age Factor
With 30+ yrs (Career Factor)
50
1.100%
1.300%
55
1.400%
1.600%
60
2.000%
2.200%
61
2.133%
2.333%
62
2.267%
2.400%
63+
2.400%
2.400% (cap)
Survivor Options
Member-Only
100% factor
Max monthly benefit. Payments stop at member's death.
Option 2 · 100%
~0.825 ×
Spouse keeps 100% of benefit for life after your death.
Option 3 · 75%
~0.865 ×
Spouse keeps 75% of benefit for life.
Option 4 · 50%
~0.905 ×
Spouse keeps 50% of benefit for life.
Formula Final Comp (highest 36) × Service Years × Age FactorTier PEPRA — hired on/after 1/1/13Max factor 2.4% at 65
CalSTRS 2% at 62 — PEPRA
CalSTRS PEPRA tier. Applies to California public school teachers hired on/after 1/1/2013. Age factor hits 2.0% at age 62 (vs. 60 for Classic) and caps at 2.4% at age 65. Uses highest 36 consecutive months of compensation regardless of service length, and has a pensionable compensation cap ($149,016 for 2024 non-Social-Security members). No Career Factor bonus — the 2.4% cap is the ceiling. Member contribution rate is the greater of 8% or half of normal cost.
Age Factor Table — CalSTRS 2% at 62 PEPRA
Retirement Age
Age Factor
Retirement Age
Age Factor
55
1.160%
61
1.880%
56
1.280%
62
2.000%
57
1.400%
63
2.133%
58
1.520%
64
2.267%
59
1.640%
65+
2.400%
60
1.760%
Survivor Options
Member-Only
100% factor
Max monthly benefit. Payments stop at member's death.
Option 2 · 100%
~0.825 ×
Spouse keeps 100% of benefit for life after your death.
Option 3 · 75%
~0.865 ×
Spouse keeps 75% of benefit for life.
Option 4 · 50%
~0.905 ×
Spouse keeps 50% of benefit for life.
Formula Final Comp × Service Years × Age FactorTier Classic — hired before 1/1/13Max factor 2.418% at 63
CalPERS 2% at 55 — Classic Formula
Applies to CalPERS “Classic” members: state miscellaneous employees, school classified staff, and contracting local agency employees hired before 1/1/2013. Uses highest 12 consecutive months of compensation (single-highest), or highest 36 if the agency elected that. Age factor table below.
Age Factor Table — CalPERS 2% at 55 Classic
Age
Factor
Age
Factor
50
1.100%
57
2.126%
51
1.280%
58
2.188%
52
1.460%
59
2.251%
53
1.640%
60
2.314%
54
1.820%
61
2.376%
55
2.000%
62
2.438%
56
2.064%
63+
2.500%
Survivor Options
Unmodified
100% factor
Max benefit + 25% automatic lifetime to eligible spouse.
Option 2 · 100%
~0.86 ×
Spouse keeps 100% of reduced benefit for life.
Option 3 · 50%
~0.92 ×
Spouse keeps 50% of reduced benefit for life.
Option 4 · Custom
Varies
Custom survivor % to non-spouse beneficiary, actuarially reduced.
Formula Final Comp (highest 36) × Service × Age FactorTier PEPRA — hired on/after 1/1/13Max factor 2.5% at 67
CalPERS 2% at 62 — PEPRA Formula
PEPRA (Public Employees' Pension Reform Act) applies to employees hired on/after 1/1/2013. Lower benefit factor than Classic, mandatory highest-3-year average, and a lower pensionable compensation cap ($149,016 for 2024 non-Social-Security members). Employees pay 50% of normal cost.
Age Factor Table — CalPERS 2% at 62 PEPRA
Age
Factor
Age
Factor
52
1.000%
60
1.800%
53
1.100%
61
1.900%
54
1.200%
62
2.000%
55
1.300%
63
2.100%
56
1.400%
64
2.200%
57
1.500%
65
2.300%
58
1.600%
66
2.400%
59
1.700%
67+
2.500%
Survivor Options
Unmodified
100% factor
Max benefit + 25% automatic lifetime to eligible spouse.
Option 2 · 100%
~0.84 ×
Spouse keeps 100% of reduced benefit for life.
Option 3 · 50%
~0.91 ×
Spouse keeps 50% of reduced benefit for life.
Option 4 · Custom
Varies
Custom survivor %, actuarially reduced.
Formula Final Comp × Service × Age Factor (Plan-specific)Plans A, B, C, D, E, GTier split Pre-2013 vs PEPRA
LACERA — LA County Employees Retirement Association
LACERA covers LA County general and safety members. Six “plans” (A-G) exist, driven by hire date. Plan D is the most common for general members hired after mid-1977. PEPRA-tier members (hired on/after 1/1/13 without reciprocity) are in Plan G. Pre-PEPRA plans use lower age factors but don't have the compensation cap. Below is the Plan G (PEPRA) age factor table.
Age Factor Table — LACERA Plan G (PEPRA)
Age
Factor
Age
Factor
52
1.000%
60
1.800%
53
1.100%
61
1.900%
54
1.200%
62
2.000%
55
1.300%
63
2.100%
56
1.400%
64
2.200%
57
1.500%
65
2.300%
58
1.600%
66
2.400%
59
1.700%
67+
2.500%
Survivor Options
Unmodified
100% factor
Max benefit + 55%-65% continuance to eligible spouse (plan-dependent).
Option 2
~0.86 ×
100% of reduced benefit to named beneficiary for life.
Option 3
~0.92 ×
50% of reduced benefit to beneficiary for life.
Option 4
Varies
Custom survivor % or period-certain.
Formula Final Comp × Service × Retirement FactorTier 1 Hired before 2/21/16Tier 3 Hired on/after 2/21/16
LACERS — LA City Employees Retirement System
LACERS covers LA City civilian employees (not police/fire). Tier 1 uses a more generous benefit formula, Tier 3 (enacted 2016) uses reduced factors plus health-subsidy reforms. Final Comp = highest 12 months (Tier 1) or highest 36 months (Tier 3). Minimum 10 years service to vest.
Retirement Factor Table — LACERS Tier 1
Age
Factor
Age
Factor
55
2.160%
62
2.300%
60
2.230%
65
2.300%
55+ w/ 30 yrs
2.300%
70+
2.300% (cap)
Tier 3 factors run roughly 15-20% lower across the table, with a 2.0% max at age 63+.
Survivor Options
Unmodified
100% factor
50% continuance to spouse of 10+ years standing.
Option A
~0.86 ×
100% of reduced benefit to beneficiary for life.
Option B
~0.93 ×
50% of reduced benefit to beneficiary for life.
Option C
Varies
Cash-refund or custom period-certain.
Formula HAPC × Service × Age Factor1976 Tier Hired before 7/1/132013 Tier Hired on/after 7/1/13
UCRP — University of California Retirement Plan
UCRP is the UC system's defined benefit pension (for staff, faculty, UC Irvine / UCLA / Berkeley / etc.). Two tiers. Highest Average Plan Compensation (HAPC) is 36 consecutive months. 1976 Tier has a more generous age factor ramp (max 2.5% at 60). 2013 Tier is flatter (max 2.5% at 65).
Age Factor Table — UCRP 1976 Tier
Age
Factor
Age
Factor
50
1.100%
57
2.000%
53
1.400%
58
2.167%
55
1.700%
59
2.333%
56
1.850%
60+
2.500%
UCRP 2013 Tier reaches 2.5% at age 65 (not 60). Younger retirees get ~20% lower factors than 1976 Tier.
Survivor Options (Payment Elections)
Single Life
100% factor
Max benefit. 25% continuance to eligible survivor.
Joint & 100%
~0.89 ×
100% of reduced benefit to contingent annuitant.
Joint & 75%
~0.92 ×
75% of reduced benefit to contingent annuitant.
Joint & 50%
~0.94 ×
50% of reduced benefit to contingent annuitant.
Type Defined Contribution (NOT DB)Union IBEW — National ElectricalContribution Employer only, varies by CBA
NEAP — National Electrical Annuity Plan
NEAP is the IBEW/NECA-sponsored retirement plan for electrical workers (formerly the District Ten Plan, renamed 1/1/94). Unlike CalSTRS/CalPERS/LACERS, NEAP is a defined contribution plan — your retirement benefit equals the balance in your Individual Account. No age factor tables apply. Your account is auto-enrolled in a Life Stage Fund that rebalances as you hit age milestones (under 30s / 30s / 40s / 50s / 60s+). Vesting: 160 hours in Covered Employment.
Withdrawal Benefit
Any age
After 24 consecutive months of zero Covered Employment.
Retirement Benefit
Age 55+
Full account balance, paid as lump sum or annuity.
Planning implication: Because NEAP is DC, your retirement income depends entirely on contribution hours worked + investment performance. There is no survivor election that reduces your benefit — a 50% joint-and-survivor annuity is the default if married, but you can roll the balance into an IRA at retirement and manage it like any 401(k). This means pension-max life-insurance strategies don't apply to NEAP the way they do to CalSTRS/CalPERS. The more important question for NEAP members is how to invest the account post-retirement (see Sequence-of-Returns Risk + MPT).
Type Corporate/Union Defined BenefitFormula Varies — check SPDTypical factor 1.0% – 2.0% per year of service
Private Defined Benefit Pension
Corporate DB plans (Boeing, GE Industrial, automakers, select utilities) and Taft-Hartley union plans use similar math to CalSTRS/CalPERS: Final Average Pay × Years of Service × a Benefit Multiplier. Multiplier is typically 1.0% - 1.5% per year of service (vs 2.0% for CA public plans), and the Final Average Pay definition varies by plan. Enter your plan's multiplier directly in the calculator below.
Step Two · Run Your Numbers
The penmax calculator — CalSTRS-style year-by-year projection with lifetime forfeiture analysis
Modeled after the official CalSTRS pension liability calculator. Enter your inputs below. The calculator projects your pension year-by-year to life expectancy, applying the selected beneficiary option factor and 2% COLA, and shows the cumulative dollar cost of choosing a survivor option instead of Life-Only — the exact number a pension-max life-insurance policy replaces.
Your Inputs
Adjust sliders or type directly. The projection table + summary refresh instantly.
$120,000
25 yrs
62
90
59
2.0%
Monthly Pension at Retirement
$5,000
CalSTRS 2% at 60 · Life-Only · Age 62 · 25 years service
Annual (Year 1)
$60,000
Age Factor Applied
2.000%
Pension-Max Recommendation
Take Life-Only for the highest monthly check. Use part of the extra income to buy permanent life insurance that replaces the survivor benefit tax-free if you die first.
Life-Only
$5,000
Max check · no survivor
Option 100%
$4,340
Spouse keeps 100%
Option 75%
$4,475
Spouse keeps 75%
Option 50%
$4,695
Spouse keeps 50%
Year-By-Year Pension Projection
From retirement to life expectancy — with 2% COLA + survivor option applied
Lifetime Life-Only Income
$0
Lifetime Survivor Option
$0
Cumulative Forfeiture
$0
Break-Even Insurance Need
$0
Year
Age
Life-Only / Yr
Survivor Option / Yr
Annual Forfeiture
Cumulative Forfeiture
The Pension-Max Insurance Quote
Replace the cumulative forfeiture with a life-insurance policy — keep the bigger check.
Taking the survivor option here costs you a cumulative $0 over 0 years vs. Life-Only. A permanent life policy sized to the death benefit below replaces the survivor guarantee — so you can take Life-Only and keep the bigger monthly check for life. Actual premium depends on age, health, and carrier; Capital Wealth runs live quotes case-by-case.
Recommended Death Benefit
$0
Monthly Income You Keep
$0
Step Four · The Strategy
Pension Maximization in one paragraph.
Take the biggest monthly pension check your system will give you (Member-Only or the equivalent). Buy a permanent life insurance policy large enough to replicate the survivor benefit for your spouse if you die first. The math usually works when: you are healthy enough to get preferred insurance pricing; the spread between Member-Only and the joint option is at least 15%; and your spouse's life expectancy is shorter than yours. Capital Wealth runs this comparison for every teacher, public employee, and union member we work with — it takes about 15 minutes and changes the lifetime-income picture by six figures.
“The survivor reduction on a California public pension is permanent. The insurance premium is not. That's the whole argument.”
When pension-max does NOT work
Health conditions that trigger “table ratings” or outright decline from life insurers.
Spread between Member-Only and the joint option under 10% (math is too close to justify the premium).
Spouse in materially worse health than the retiree (roles reversed — survivor benefit is actually undervalued).
NEAP / defined contribution members — no survivor reduction to work against.
The 15-minute decision
The pension election is usually final once you file retirement papers. For CalSTRS and CalPERS, you can only change it for one year after retirement under narrow conditions. So this has to be run before you retire — ideally 2-3 years before. That gives time to underwrite the policy, confirm the pricing, and see the joint-life vs. Member-Only math on paper.
Run your pension-max analysis — free, no commitment.
15-minute Zoom. Bring your most recent CalSTRS/CalPERS/LACERA/LACERS/UCRP annual statement (or for NEAP, your quarterly Individual Account statement). We'll walk through the age-factor table, your survivor options, and whether a life-insurance pension-max structure makes sense for your health and situation.
