No, you cannot borrow money directly from your CalPERS (California Public Employees’ Retirement System) retirement account. CalPERS does not allow loans against your pension or contributions, unlike some other retirement plans like 401(k)s that might offer such options.
Key Points to Understand:
- Pension Fund Restrictions: CalPERS is designed to provide a lifetime pension after retirement, so the funds are generally locked until you retire or leave public service. This ensures the pension’s stability and your future financial security.
- No Hardship Withdrawals: CalPERS does not offer hardship withdrawals or loans against your pension contributions. The money in your CalPERS account is meant to provide retirement income, not to be accessed for short-term needs.
- Limited Options for Access:
- Retirement: Once you retire, you will receive your pension as monthly payments, which cannot be accessed in a lump sum.
- Refund of Contributions: If you leave public employment covered by CalPERS before retirement, you can choose to withdraw your contributions, but this will forfeit your right to future pension benefits.
Alternatives:
If you need funds before retirement, you might consider:
- Personal loans or home equity lines of credit.
- Borrowing from other retirement accounts, like a 401(k), if applicable.
- Financial counseling to explore options that don’t jeopardize your long-term retirement security.
For more detailed guidance, it’s advisable to consult a financial advisor or contact CalPERS directly.