October 23, 2012
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Amy Norris, Information Officer
Local Government Pension Valuation Reports Available Online Beginning November
New information will help employers plan for coming years
SACRAMENTO, CA – In keeping with its goals to increase transparency, the California Public Employees’ Retirement System (CalPERS) is adding more information to the most recent 2011 valuation reports that inform public agency employers of yearly contribution costs and funded status for their pension plans.
“We are committed to enhancing the quality and accessibility of financial, actuarial, and program information for our employer partners,” said Anne Stausboll, CalPERS Chief Executive Officer. “In this environment of budget stress, it’s our responsibility to inform and educate our employers about costs as much as we possibly can.”
Each year, CalPERS actuaries calculate accrued liabilities for each plan plus an additional amount needed to pay down any unfunded liability. The results of these valuations determine the employer contribution amount needed to adequately fund retirement benefits. The 2011 reports set the rate for Fiscal Year 2013 – 14 and estimate rates for 2014 – 15 through 2017 – 18 under various investment return scenarios.
“In response to a growing desire for more detail about costs and possible fluctuations in employer contribution rates, we are making more information available to help our employers budget for the future,” said Alan Milligan, Chief Actuary. “We want to provide more information in order to paint a realistic picture of the risks and relative health of each plan.”
New information in the 2011 reports includes:
- Line item for total normal cost and employee share of normal cost
- Impact of change in discount rate to 7.5 percent including two-year phase-in of higher rates
- Discount rate sensitivity analysis that illustrates change in contribution rates if the discount rate were to adjust again
- Hypothetical termination liability
- Risk analysis section
Employers will have an opportunity to view their valuation reports through their my|CalPERS accounts before the reports are made publicly available. It will take several weeks beginning in late November to upload the reports in batches. Once posted, reports will be publicly available at www.calpers.ca.gov in the Forms and Publications section.
CalPERS is the nation’s largest public pension fund with approximately $245 billion in assets, providing retirement benefits to more than 1.6 million State, public school, and local public agency employees, retirees, and their families, and health benefits to more than 1.3 million members. The average CalPERS pension is $2,420 per month. The average benefit for those who retired in the most recent fiscal year that ended June 30, 2012, is $3,025 per month. For more information about CalPERS, visit www.calpers.ca.gov.