PEPRA (A.B. 340)

2015 PEPRA Compensation Limits are $117,020 and $140,424

12-19-2014 |

The 2015 PEPRA Compensation limits are $117,020 and $140,424, based on a nonbinding calculation by the California Actuarial Advisory Panel (CAAP).

The California Actuarial Advisory Panel (CAAP) issued a letter detailing its calculation of the 2015 Compensation limits under PEPRA for New Members.  The limits are:

  • $117,020 for New Members participating in Social Security
  • $140,424 for New Members not covered by Social Security.

PEPRA, the California Public Employees' Pension Reform Act of 2013 specified the method for calculating the compensation limits based on the initial value and subsequent CPI increases.

CAAP intends to calculate the limits in the future as well as for 2015 since they believe a uniform limit across California public plans, without rounding differences, will ease administration.  However, the CAAP is an advisory organization only and its calculation of the limit is non-binding.

These limits apply to New Members: those who are first hired by a public employer in 2013 or later.  Individuals who move between agencies with, generally, more than a 6-month break are also New Members.
 
CAAP Letter with 2015 Compensation Limits 11-07-2014
 
CAAP website

Brief Summary of PEPRA for CalPERS Agencies

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