Established in 1947, the Legislators' Retirement System provides retirement and death benefits for Legislators, Constitutional Officers, and Legislative Statutory Officers.

The Legislators' Retirement System is funded through contributions from the state and members of the system and from investment earnings. The members' contributions are dependent upon when the member first enrolled in the Legislators' Retirement System. Members enrolled prior to March 4, 1972, contribute 4 percent of their salaries while members enrolled after that date contribute 8 percent of their salaries. The state's contribution to the Legislators' Retirement System varies each year and is based on the amount needed to pay future benefits. In years when members' contributions and investment earnings exceed the amount needed to pay benefits, the state does not make any contributions. Since 2000-01 the Legislators' Retirement System has been super-funded, eliminating the need for the state or members to make contributions.

The California Public Employees' Retirement System administers the Legislators' Retirement System on behalf of its members. Retirement benefits paid are based upon age, years of service, and compensation. Benefits for death, disability and surviving dependents of deceased members are also provided under specific conditions. The Legislators' Retirement System will pay approximately $7.9 million in benefits to retirees in 2006-07.

Proposition 140, approved by the voters in 1990, prohibits legislators taking office for the first time after November 6, 1990, from participation in the Legislators' Retirement System.