2025-26 Public Agency 1959 Survivor Monthly Premiums
June 10, 2025
Circular Letter: 200-030-25
Topic: Actuarial
To: All Public Agency Employers
Purpose
The purpose of this Circular Letter is to inform you of required premiums to be collected for fiscal year (FY) 2025-26. The California Public Employees’ Retirement System (CalPERS) Board of Administration approved normal costs and required premiums for the 1959 Survivor Benefit Program on April 15, 2025. The 1959 Survivor Benefit Program is an employer contract provision that provides monthly benefits for eligible survivors of participating members who die while actively employed. This Circular Letter pertains only to those public agencies that contract for the 1959 Survivor Benefit Program.
Billing for Employer Premiums
Employer invoices for FY 2025-26 will be posted to myCalPERS in June 2026 and will be based on the actual number of active member months.
Public agencies that contract for the 4th or Indexed Level are required to pay the employer normal cost for the first five years in the pool. Agencies that have remained at that level for more than five years are required to pay the employer premium. The difference between the employer normal cost and the employer premium is that the employer premium includes an amortization of the pool’s unfunded liability/surplus.
Payroll Reporting for Employee Premiums
Beginning with the payroll period that includes July 1, 2025, the required employee premium for the Indexed Level of benefits is $3.00 per member, per month (or $1.39 per bi-weekly pay period). The required employee premium for all other benefit levels continues to be $2.00 per member, per month (or $0.93 per bi-weekly pay period). Share this information with those responsible for payroll reporting.
The required employee and employer costs for FY 2025-26 are detailed in the chart, by the various benefit levels. The invoices for the annual employer cost for FY 2025-26 will be posted to myCalPERS in June 2026.
| Level/Pool | Employee Premiums | Employer Cost Per Member Per Month | |
|---|---|---|---|
| Employer Premium (If contracted on or before 7/1/20) | Employer Normal Cost (If contracted after 7/1/20) | ||
| 1st | $2.00 | None | N/A |
| 2nd | $2.00 | None | N/A |
| 3rd | $2.00 | None | N/A |
| 4th | $2.00 | $5.20 | $5.70 |
| Indexed | $3.00 | $3.00 | $7.00 |
The required employee and employer costs for FY 2024-25 are detailed in the chart, by the various benefit levels. The invoices for the annual employer cost for FY 2024-25 will be posted to myCalPERS in June 2025.
| Level/Pool | Employee Premiums | Employer Cost Per Member Per Month | |
|---|---|---|---|
| Employer Premium (If contracted on or before 7/1/19) | Employer Normal Cost (If contracted after 7/1/19) | ||
| 1st | $2.00 | None | N/A |
| 2nd | $2.00 | None | N/A |
| 3rd | $2.00 | None | N/A |
| 4th | $2.00 | $5.80 | $5.90 |
| Indexed | $2.95 | $2.95 | $6.85 |
Funded Status
Required premiums vary annually due to investment returns and mortality gains and losses experienced by the pools. A good indicator of the potential for changes in the required premiums is the funding status of the pools. Currently all pools are funded at more than 100%. As the funded ratio declines, it is more likely that the pool will require employer premiums.
The funded ratios of the pools based on market value of assets as of the valuation date are detailed:
| Level/Pool | 2024 | 2023 | 2022 |
|---|---|---|---|
| 1st | 2,951.0% | 2,545.7% | 2,392.4% |
| 2nd | 762.1% | 725.8% | 673.5% |
| 3rd | 490.2% | 472.4% | 461.5% |
| 4th | 105.6% | 103.3% | 105.7% |
| Indexed | 138.8% | 138.6% | 140.8% |
Payable Monthly Benefit
The monthly benefit payable to survivors in the Indexed Level increases by 2% each calendar year. Shown are the benefits payable for 2025 and 2026.
| Indexed Level | 1 Survivor | 2 Survivors | 3 or More Survivors |
|---|---|---|---|
| Monthly Benefit Payable 2025 | $820 | $1,641 | $2,461 |
| Monthly Benefit Payable 2026 | $837 | $1,673 | $2,510 |
For information about other benefit levels, visit the 1959 Survivor Benefit Program page on the CalPERS website.
Valuation Report
Access the 1959 Survivor Benefit Program 2024 Actuarial Valuation (PDF) on the CalPERS website.
Questions
If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).
Scott Terando, Chief Actuary
Actuarial Office