Save Approximately 3.33% Interest Through a UAL Lump-Sum Prepayment
April 10, 2026
Circular Letter: 200-017-26
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 approximately 3.33% interest.
Save approximately 3.33% Interest by Prepaying Your Annual UAL in July
Springtime is the budget planning season for many public agencies, and we want to make sure you’re aware of this 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 approximately 3.33% interest savings. When your contributions are invested early in the fiscal year, it increases the likelihood of maximizing potential investment returns for the remainder of the year.
Last year, nearly 79% of our contracting agencies took advantage of this incentive and saved money. We want to make sure you’re aware of this option when 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 review 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 the Required Contributions section of the report.
Payment Timing and Methods
Your UAL receivables for fiscal year (FY) 2026-27 are available in myCalPERS starting July 1, 2026. Lump-sum UAL prepayments must be received and posted by CalPERS no later than July 31, 2026, or myCalPERS will automatically set up a 12-month payment plan. Payments should be made by the following methods.
| Payment Method | Payment Instructions | Due Date |
|---|---|---|
| Electronic Funds Transfer (EFT) Debit (Preferred Method) | Log in to myCalPERS to make a payment. For lump-sum payments, enter the amount of the prepayment manually. Note: With fraud prevention and thresholds set on bank accounts, inform your financial institution when authorizing a lump-sum payment to avoid any potential delays and returns on payments. | Payments should be set up no later than Wednesday, July 29, 2026, with a settlement date no later than Friday, July 31, 2026. |
| EFT Credit (Preferred Method) | Using your own financial institution payment system, send payments to the following: Bank Name: U.S. Bank Address: U.S. Bank Contact FCSD_Cashiers@calpers.ca.gov for banking information. Information Text: | EFT credit payments must settle no later than Friday, July 31, 2026. 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: Identify your:
| Wires must settle no later than Friday, July 31, 2026. 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, 1.85 MB) 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