Notes about our math:

First, these numbers are the most practical that we can use for an example. Some have brought up the issue with our using Cal Fire 3% at age 50, which is no longer the current plan. Our use of this plan is simply because if you were to retire today, you likely were hired before 2013, when the new system went into place.

But we would like to offer an alternative scenario, under the new retirement plan for current Cal PERS, 2.7% @ age 57.

In the following scenario, we compare Cal Fire Captain vs Federal Fire Captain, same jobs with same responsibilities. And again, we use current salaries for Cal Fire and Federal GS-8 Step 4.

We assume a 30 year career, retiring at 57, a common age for federal workers as that is the mandatory retirement age. For federal workers only 25 years are allowed to be calculated for retirement. 1.7% of each year for 20 years, followed by 1% for 5 additional years, so 1.56% over 25 years.

Cal Fire worker: 30 years * 2.7% * $127,932 annual salary = $103,625 per year in retirement.

Federal worker: 30 Years (only 25 allowed for retirement calculation) * 1.56% * $53,216 = $20,754 per year in retirement.

So under the new retirement program, the gap is still ~ $83,000 per year and over a 30 year retirement federal workers will earn roughly $2.5M less income in retirement when compared to their Cal Fire peers.

Where are we getting our numbers?

For Cal Fire:
Pension Benefits here
See page 46 for current retirement plan
See page 48 for retirement plan prior to 2013
The maximum benefit available under the current Cal Pers retirement system is 108%

Salary Here
See page 25, columns 4, 6 & 7 for monthly pay totals

For Federal:
Pension calculation is 1.7% for 20 years and 1% for additional 5 years
the maximum benefit available under federal employee retirement system is 39%

But what about the benefits? Cal Fire wins there, too.

Retirement Pension

Retirement for Cal Fire is the number of seasons worked, multiplied by 3% of the average of the highest 3 year salaries earned. This percentage is double what federal fire receives. Combine this with the much higher salary, and it is potentially millions of dollars in additional earnings that Cal Fire will receive than a federal employee in retirement.

For fun, let’s compare a Cal Fire Handcrew Captain vs. a Federal Handcrew Captain (GS-8 step 4):

Cal Fire - 25 year career ending up at $127,932 - 3% * 25 years * $127,932 = $95,949 salary in retirement at age 50

30 years retired (Age 80) this pensioner has earned $2.88M

Federal Fire - 25 year career ending up at $53,216 - 1.5% * 25 years * $53,216 = $19,956 salary in retirement at age 57 (Mandatory Retirement Age)

30 years retired (Age 87) this federal pensioner has earned $598,680.

The difference in pension benefits here is over 2.28M dollars!