9/1/22 – RPEA Bill carried by Senator Cortese and sponsored by the Retired Public Employees Association (RPEA), SB 1168 raises the minimum statutory CalPERS postretirement benefit for local public agency employees from $500 to $2,000 to establish benefit parity and to address the substantial erosion in the value of the CalPERS postretirement lump sum death benefit which the state originally intended to help pay for the retiree’s funeral costs.
The legislature enacted the original $300 lump sum postretirement death benefit for all CalPERS annuitants in 1945. That amount adjusted for inflation would be $4,699 in 2022. Under current law, the benefit is set from $500 to $5,000 depending on the member’s classification and employer.
“The reality is that the current CalPERS postretirement death benefit amount for most public employees is far below the actual cost of a funeral, putting survivors in difficult positions upon the death of a loved ones,” says Senator Cortese. “SB 1168 will provide survivors with a little extra help during a hard time.”
Senator Dave Cortese