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PUBLIC EMPLOYEES' RE- "MENT SYSTEM P. O. Box. '1953, Sacra..- .,to, CA 95809 Booklet: ACT -DO -108 - September 1972 2% AT AGE 50 RETIREMENT PROGRAM Local Safety Members GENERAL The Public Employees' Retirement System provides incomes for service and disability retirement, death benefit payments, plus a guarantee that member contributions (with interest) will be refunded to all who wish to withdraw upon termination of employment. Membership is compulsory (except for elected officials) for all persons employed one-half time or more. The Legislature has provided a benefit structure for the California Highway Patrol and local safety members of contracting agencies. This formula (2% at age 50) provides that service retirement benefits shall be 2% of final compensation for each year of safety service upon retirement at age 50 with increasing percentages to a maximum of 2.7% at retirement at age 55. The Retirement Law provides for an automatic annual adjustment of allowances of retired persons or beneficiaries to reflect increases in cost of living as indicated by the Consumer Price Index of the Bureau of Labor Statistics subject to specified limits and conditions. MEMBER CONTRIBUTIONS Each local safety member, whether a new member of a member with years of mem- bership, will start contributing at the uniform rate of 9% of salary earned, exclusive of overtime, on the date this formula becomes effective. No adjust- ment of previous member contributions is required. SERVICE RET REMENT Who may retire. Normal retirement is at age 50. Retirement is compulsory at age 60 and anyone over that, age when this formula becomes effective will be compulsorily retired on the first day of the following month. To be eligible for voluntary retire- ment a member must have at least five years of service (prior service counts toward the 5 years) and have attained the minimum retirement age. Retirement at age 60 is compulsory regardless of length of service or amount of contri- butions. ;laRV1C1, RETIREME'N'T f3I]WITS 'Me monthly income is determined by years of credited ser- vice, and "final compensation" 10Final compensation" is the highest average monthly salary (excluding overtime) during the three consecutive years of employment immediately prior to date of retirement or separation or during any other period of three consecutive years during membership which the member designates in his application for retirement. 'The maximum allowance is 75% of "final compensation".