Those who participate in CalPERS do not contribute to Social Security. So think of CalPERS as a replacement to SS.
The benefit calculation differs depending on the agency (cops and firefighters get better options, for instance). Generally the rule is 2% at age 55, though you can start drawing at age 50 with a lower rate. Here is the breakdown for my agency:
https://www.calpers.ca.gov/eip-docs/member/retirement/service-retire/benefit-charts/pub-6-2percent-55.pdfThe formula is:
(Service Credit (years employed) X Benefit Factor (age at which you start withdrawing) X Highest Annual Salary)/12 = Monthly Payout
After 5 years of employment the employee is vested, meaning they are guaranteed the formula above regardless of when the employee separates from service. One could take a lump some payout upon separation, but most people choose the safe pipeline of lifetime income. Your GF won’t be able to tap into the safe monthly payout until she hits the designated age though.
This is where the 457 shines (and I think it is available to all CalPERS employees). This huggable dude is a boon for the early retiree. It’s like a 401k, but there are no age limits on withdrawing from it. This can be used as a bridge between RE and the pension.
A couple thoughts to consider:
-If she hates the job she should start looking elsewhere. Once vested, there is a huge sunk cost mentality that starts to wobble around the brain (and the golden handcuffs start to get tighter and tighter, especially if her salary is increasing along the way).
-The lifetime health care benefits that CalPERS dangles in front of its employees are only available if one officially retires (and starts withdrawing from the pension) within 30 days of separating from service. This is a great benefit for the regular Joe, but if one plans on leaving before the age of 50…not so much. So factor in healthcare costs if she plans on leaving before the minimum retirement age.
Ok, too much for a 5 year old, but hopefully this makes sense. :)