Options to Pay the Unfunded Accrued Liability Lump Sum for the 2025 Fiscal Year
July 3, 2025
Circular Letter: 200-033-25
Topic: Financial
To: All Contracting Public Agencies
Purpose
The purpose of this Circular Letter is to announce the July 2025 receivables window to make a lump-sum prepayment of your required monthly unfunded accrued liability (UAL) and instructions on accepted payment methods.
Save 3.4% Interest by Prepaying Your Annual UAL in July
We want to make sure you are 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 3.4% interest. When your contributions are invested early in the fiscal year (FY) it may provide a greater potential of maximizing investment returns throughout the remainder of the year. Last year, nearly 77% of contracting agencies made a UAL lump-sum prepayment. We want to make sure you are aware of this payment option. 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 FY 2025-26 are available in myCalPERS beginning on 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 using one of 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: 630 K Street Ste 130, Contact FCSD_Cashiers@calpers.ca.gov for banking information. Information Text: For your payment to be properly processed, please 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: 2000 Clayton Road Bldg. D, 5th Floor Banking Information: Contact FCSD_Cashiers@calpers.ca.gov for banking information. Information Text: For credit to: State of CA, CalPERS Identify your:
| Wires must settle no later than Thursday, July 31, 2025. 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.
Questions
If you have any questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377 888-225-7377).
Michele L. Nix, Acting Chief Financial Officer
CalPERS Financial Office