Do I really have to work until 57?
No. Under 2.7% at 57 you can retire from 50, and the benefit factor grows each quarter year until it reaches the full factor at 57.
At a glance
- The formula name is the age where the factor tops out, not the age you have to reach.
- Each quarter year you wait raises the factor a little, and each year of service adds to the total.
- Retiring early means more years to cover health care before Medicare at 65.
- The 457 is what carries you through those years. It has no early-withdrawal penalty once you leave the City.
Who this is for: A Hanford PD officer on the PEPRA formula who has heard that 57 is the retirement age and wants to see the trade.
Reviewed by Theron Morgan, CEO and founder, Avidity Capital Inc., a registered investment adviser, on 2026-10-07.
What the formula name means
2.7% at 57 names two things: the full benefit factor and the age you reach it. It does not set the age you must work to. You can retire from 50 with a factor of 2.000%, and the factor climbs each quarter year to 2.700% at 57.
Two things grow while you keep working: the factor, and your years of service. Both multiply, so the last few years of a career add more to the pension than the first few did.
The years before Medicare
Retire at 50 and you have the years until Medicare at 65 to cover with health insurance you arrange and pay for. Under the MOU, retiree medical is funded by officers only, with no City contribution. Retiring later shortens that stretch.
How long the 457 has to last
Money in a governmental 457(b) can come out after you leave the City without the early-withdrawal penalty that applies to most other retirement accounts. That makes it the account that carries an early retirement: pension plus 457 until other income starts.
The earlier you leave, the more years the 457 has to cover, and the less time it has had to grow. Running the slider above with your own numbers shows the pension side of that trade.
What the app does
If you plan to retire early, the Retirement tab notes that 457(b) dollars have no early-withdrawal penalty, while most other workplace plans and IRAs do. The plan carries a monthly health care cost on top of your spending and grows it faster than other prices, so the years before Medicare show up in the numbers.
Questions people ask
Can a PEPRA safety member retire before 57?
Yes, from 50, with a smaller benefit factor than the full one. The CalPERS chart for 2.7% at 57 shows the factor at each quarter year.
How much does each year I wait add?
The factor rises each quarter year until 57, and each year adds service credit. Run the estimator with your own service and final compensation to see your numbers.
Is there a cap on the PEPRA safety pension?
The CalPERS chart for 2.7% at 57 prints no maximum percentage. PEPRA does cap the pay that counts toward the pension each year.
Can I use my 457 as soon as I retire?
Yes, once you have left the City. A governmental 457(b) has no early-withdrawal penalty after separation. Income tax still applies to pre-tax money.
Next step
See your own numbers first. The free reality-check needs no account and no card.
This page is education, not individualized investment, tax, legal or insurance advice. It names no products, funds or allocations and carries no client stories. Where a document or a policy is needed, an estate attorney or a licensed insurance agent is the person who prepares it. Avidity Capital Inc. drafts no legal documents and receives no commission or referral fee from insurance, estate attorneys, mortgage lenders or real estate agents. Its compensation is the member's subscription and, for members who choose it, an advisory fee for managing assets; see Form CRS and Form ADV Part 2A. Avidity Capital Inc. is a registered investment adviser.