Save 3.4% Interest with a UAL Lump-Sum Prepayment
April 18, 2025
Circular Letter: 200-016-25
Topic: Financial
To: All Contracting Public Agencies
Purpose
The purpose of this Circular Letter is to inform you about the option of prepaying your annual unfunded accrued liability (UAL) to save 3.4% interest.
Save 3.4% Interest by Prepaying Annual UAL in July
Start the fiscal year off with savings. Since springtime signals budget planning for many public agencies, it’s essential to consider effective strategies to manage costs. One method we want to make sure you’re aware of is a cost-saving payment option available to all California Public Employees’ Retirement System (CalPERS) contracting agencies. If you make a lump-sum prepayment of your annual UAL in July, we will discount your annual payment by 3.4% interest savings. When your contributions are invested early in the fiscal year it gives a better chance of maximizing potential investment returns throughout the remainder of the year. Last year, nearly 77% of our contracting agencies took advantage of this incentive and saved money. We want to make sure you are aware of this option while planning your budget. This incentive is exclusive to the month of July.
Find Your Prepayment Amount
There are two ways to find your lump-sum prepayment amount. You can access your agency’s most recent actuarial valuation report on the CalPERS website or you can contact your assigned actuary. The annual UAL prepayment amount is found on page 4 under required contributions of the report.
Payment Timing and Methods
Your UAL receivables for fiscal year 2025-26 are available in myCalPERS starting July 1, 2025. Lump-sum UAL prepayments must be received and posted by CalPERS no later than July 31, 2025, or myCalPERS will automatically set up a 12-month payment plan. Payments should be made by the below methods.
| Payment Method | Payment Instructions | Due Date |
|---|---|---|
| Electronic Funds Transfer (EFT) Debit | Log in to myCalPERS to make a payment. For lump-sum payments, enter the amount of the prepayment manually. | Payments should be set up no later than Tuesday, July 29, 2025, with a settlement date no later than Thursday, July 31, 2025. |
| EFT Credit | Using your own financial institution payment system, send payments to the following: Bank Name: U.S. Bank Address: Contact FCSD_Cashiers@calpers.ca.gov Information Text: For your payment to be properly processed, include the following information in the addenda.
| EFT credit payments must settle no later than Thursday, July 31, 2025. If submitting a payment using this method for the first time, email FCSD_cashiers@calpers.ca.gov prior to your payment settlement to ensure timely processing. |
| Wire Transfer | Bank Name: Bank of America Address: Contact FCSD_Cashiers@calpers.ca.gov for banking information. Information Text: For credit to: State of CA, CalPERS Identify your:
| To ensure timely crediting to your account, any individual wire totaling more than $5,000,000 will require a 72-hour notice by emailing both FCSD_Public_Agency_Wires@calpers.ca.gov and your assigned actuary. Attach your UAL invoice to the email. |
Additional Resources
For additional information on EFT and automated clearing house payment options, refer to the myCalPERS Electronic Funds Transfer (PDF) student guide located on the CalPERS website.
Questions
If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).
Michele L. Nix, Chief Financial Officer
CalPERS Financial Office