How Are CalPERS Benefits Funded?

CalPERS Pension Buck

The largest contribution to fund CalPERS benefits comes from investment dollars.   The below CalPERS Pension Buck illustrates the sources of income that fund public employee pensions.  Based on data over the past 20 years ending June 30, 2020, for every dollar CALPERS pays in pension:

  • 55 cents comes from investment earnings
  • 32 cents from employer contributions
  • 13 cents from employee contributions

In other words, 68 cents out of every public employee pension dollar is funded by CalPERS' own investment earnings and member contributions. In the fiscal year ended June 2020, CalPERS paid out nearly $ 25.8 billion in pension benefits.


Show All Answers

1. How Are CalPERS Benefits Funded?
2. Investment & Pension Terminology
3. Links for More Information
4. Public Access to Actuarial Valuation Reports