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PUBLIC EMPLOYEES' RETIREMENT SYSTEM (2°% at age 50) 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 employ- ment. 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) pro- vides 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. Total service retirement benefit is subject to a limitation of 75% of final compensation. 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. The adjustment may not exceed an amount equal to the base allowance increased by A,% compounded from the base year. Increases will not be provided until the fourth year following the year of retirement. NIdBER CONTRIBUTIONS Each local safety member, whether a new member or a member with years of membership, will start contributing at the uniform rate of 9% of salary earned, exclusive of overtime, on the date this formula becomes effective. No adjustment of previous member contributions is required. SERVICE RETIREMENT 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 retirement a member must have either contributions exceeding $500 or 20 years of service. Retirement at age 60 is compulsory regardless of length of service or amount of contributions. SERVICE RETIREMENT BENEFITS The monthly income is determined by a e at retirement years of credited service, and "final compensation". The latter term means the average monthly salary kjaEc overtime during th6 36 consecutive highest paid months. Ret. Form 1589-1 (1/69) 500