The California Employers' Retiree Benefit Trust (CERBT) Fund is a Section 115 trust fund dedicated to prefunding Other Post-Employment Benefits (OPEB) for all eligible California public agencies. Even those not contracted with CalPERS health benefits can prefund future retiree benefits such as health, vision, dental, and life insurance.

By joining this trust fund, California public agencies can help finance future costs in large part from investment earnings provided by CalPERS. Since its launch in 2007, more than 575 California public employers choose CERBT as their OPEB trust fund. View CERBT Participating Agencies.

Register for a Prefunding Programs Workshop to learn more.

Current Participating Employers

Log in to the CERBT Online Record-Keeping System to view your daily balance, transaction history, or download quarterly and annual CERBT statements.

Starting March 1, 2021, all public agency and school CERBT contributions are initiated through the myCalPERS system, replacing the paper contribution forms. See the Prefunding Programs’ myCalPERS contributions guide (PDF) for directions and information regarding this new process.

Prefunding allows you to enjoy the following benefits:

  • Contribute to preserving a positive credit rating
  • Generate investment income from employer-controlled contributions to pay for future retiree benefits
  • Reduce future employer cash flow requirements and budget dependency with investment income
  • Reduce OPEB liabilities reported on employer annual financial statements

As one of the nation's largest public employer OPEB trust funds, we strive to sustain retiree health benefits. We do so by delivering an uncomplicated, low-cost investment and administration program, high-quality service, compliance reporting, and education about the value of prefunding retiree healthcare benefits.

Benefits include:

  • All services provided at a single, low cost
  • Assistance with GASB compliance and financial reporting
  • Investment management by experts at CalPERS and internationally renowned consultants
  • No revenue sharing agreements, surrender/withdrawal/deferred sales charges, investment performance charges, or minimum fee requirement
  • Simple and straightforward administrative procedures

How it Works

The low cost of the CERBT program yields higher long-term net investment returns. CERBT offers three diversified asset allocation strategies. These strategies invest in five common asset classes:

  • Commodities
  • Fixed Income
  • Global Equity
  • Global Public Real Estate Investment Trusts (REITs)
  • Treasury Inflation Protected Securities (TIPS)

For more information on the specific allocations of each asset class, see the Investment Policy for the CERBT Fund (PDF).

Each strategy offers a distinctly different long-term expected return and return volatility. These strategies rely on the same underlying set of asset classes. Strategy 1 has the highest long-term expected rate of return/return volatility. Strategy 3 has the lowest long-term expected rate of return/return volatility. You can choose the strategy that best matches the characteristics of your plan and risk preference.

Return/Return Volatility Strategy 1 Strategy 2 Strategy 3
Expected Return Rate 6.0% 5.5% 5.0%
Standard Deviation of Expected Return 12.1% 9.9% 8.4%

The following CERBT Fund fact sheets for each asset allocation strategy are updated every month:


CERBT charges employers a single fee rate to cover all program costs. At the beginning of each fiscal year, the program budget is determined. At the same time, we project an expected average annual asset balance for the trust fund. By dividing the program budget by the average annual asset balance, we derive an average annual basis point charge rate.

This basis point charge rate is applied daily to the asset balance of each employer. Each day the investment return (positive or negative), and disbursements or contributions, are added to the employer's ending asset balance of the previous day. Then a daily basis point charge rate is applied to the employer account. The employer account ending balance of the day equals the sum of previous day ending balance plus investment return, disbursements and contributions, minus the daily basis point charge.

The fee rate is a function of both the fund operating costs and of the average asset balance of the fund. The fee rate is likely to vary over time, and may be higher or lower in the future. CERBT is a state trust fund program and retains no profit from the program. Email us to learn the current fee rate.

The annual fee rate covers the following activities:

  • Compliance
  • Investment management
  • Legal services
  • Ongoing administration
  • Record-keeping
  • Reporting
  • Start-up, transfer of assets, termination
  • Trustee/custodial services

Complete and send the following items to the CalPERS CERBT Program:

*This Agreement and Election document must be presented to your employer's governing body and completed and adopted in a public meeting. This is the only document that must be received as a physical copy. You can email all other documents.

If mailing via U.S. Postal Service, send to:
Prefunding Programs
P.O. Box 1494
Sacramento, CA 95812-1494

If mailing via FedEx, send to:
Prefunding Programs
400 Q Street
Sacramento, CA 95811

CalPERS will process the agreement and mail you an acknowledgment letter. The letter will state the agreement has been approved and will provide an executed original copy of the agreement that includes the approval date.

For assistance with the contracting process and submission requirements, or to request forms and instructions by mail, please email us.

The Governmental Accounting Standards Board (GASB) is a not-for-profit organization that formulates accounting standards for State and local governments. GASB standards are not law but are accounting principles to which government agencies subscribe voluntarily that improve the clarity of financial reporting.

GASB 74 & 75

CERBT is a GASB-compliant trust fund that reports its financial statements in compliance with GASB OPEB standards.

Employers participating in the trust are expected to provide periodic OPEB actuarial valuation reports and financial information to CERBT in order to fulfill the requirements for trust fund financial reporting under GASB Statement No. 74. Employers will use this same information to fulfill their own GASB Statement No. 75 requirements.

CalPERS will report GASB Statement No.74 requirement on behalf of Employers contracted and prefunding with the CERBT Program. To assist CERBT contracted Employers with GASB Statement No. 75 reporting CalPERS prepares an annual audited Schedule of Changes in Fiduciary Net Position by Employer Report, providing audit confirmed assets in the OPEB Trust annually.

View the GASB OPEB Statements and Implementation Guides for GASB Statement No. 74 & 75.

CERBT team members are on hand to answer any specific questions Employers or their financial auditors may have regarding CERBT assets and OPEB liabilities.

Schedule of Changes in Fiduciary Net Position by Employer

Consulting Actuaries

In order to participate in the California Employers' Retiree Benefit Trust (CERBT) program, employers must provide periodic other post-employment benefit (OPEB) cost reports to the CalPERS Board of Administration. The CalPERS Board requires that OPEB cost reports must be prepared using actuarial assumptions and methods that comply with Actuarial Standards of Practice and with Governmental Accounting Standards.

View the CalPERS Health Plan (PEMHCA) Implicit Subsidy Data for Calendar Year 2021 (XLSX).

To assist employers in obtaining an OPEB actuarial valuation to satisfy GASB OPEB reporting requirements, we've established an automated process to retrieve an extract of participant information for employers participating in the Public Employees Medical and Hospital Care Act (PEMHCA). There's no cost for this extract. A list of the data elements and values provided in the OPEB data extract can be found here: OPEB Census Report Information (PDF).

To initiate this process, log in to your myCalPERS account for Employers & Business Partners. The system access role required to request the extract is Business Partner Health Contracts.

Once logged in, select the Health Contracts tab, then select the OPEB Data Extract link on the left side toolbar. Allow for up to 48 hours for this request to be processed. Two reports will be generated; one for active participants and one for retired participants. To retrieve the reports, you'll need to log back in to the myCalPERS system through the same process, as the system will not send a notification email once the reports are available.

Since GASB standards are an accounting principle and will affect the employer's financial statements, we urge you to contact your auditor to discuss whether you need an extract before submitting the request. Please note that the data provided in these reports is unaudited. It's the employer's responsibility to review the data for validity prior to use in any calculations. 


Forms & Publications

Frequently Asked Questions

  • How do I make a contribution to my CERBT account?

    There are two methods to submit a contribution to your CERBT account:

    1. By check
    2. By electronic funds transfer (EFT)

    These contributions must be initiated through creating a receivable for the contribution amount in the myCalPERS system. If you need help getting set up in the myCalPERS system, email us.

    Contributions will be accepted as early as one day after the date your agency’s contract agreement is approved by CalPERS.

  • How do I request a disbursement from my CERBT account?

    To receive a disbursement from your CERBT account you must complete a Disbursement Request form. See instructions on page 3 of the form. Once completed and signed, email us this form to ensure timely processing of your disbursement. The original, signed disbursement request form needs to be mailed to us before we can remit funds to your agency. Disbursements are processed once a month, in the month following receipt of the completed disbursement request form.  

    The Disbursement request form must be signed by staff that have been identified in the Delegation of Authority to Request Disbursements. If you don't know who the appropriate staff members to sign the Disbursement Request form, email us.

  • How much does it cost to participate in CERBT?
    Employers pay the actual cost of trust operation. CalPERS is a state agency and does not retain profit from trust operation. CERBT staff establish a fee rate (basis point) which is charged daily to the account of the participating employers to cover the costs of the CERBT annual program budget approved by the CalPERS Board of Administration. The fee rate is likely to vary over time, and may be higher or lower in the future. Email us to learn the current fee rate.
  • How often are actuarial valuations or AMM cost reports required?

    Since CERBT has more than 200 participants, GASB requires participating agencies to have OPEB valuations and AMM cost reports performed every two years.

  • Is CERBT an IRS-approved trust?
    Yes, the CERBT has received a favorable ruling from the Internal Revenue Service.
  • Is there a minimum contribution requirement for CERBT?
    No, contributions to the CERBT are always voluntary and are never required.
  • What is the earliest date contributions may be made?

    Contributions will be accepted as early as one day after the date the agreement is approved by CalPERS.