California Employers' Retiree Benefit Trust (CERBT) Fund
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 550 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.
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.
- 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:
- 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||7.59%||7.01%||6.22%|
|Standard Deviation of Expected Return||11.83%||9.24%||7.28%|
The following CERBT Fund fact sheets for each asset allocation strategy are updated every month:
- CERBT Fund Facts – Strategy 1 (PDF)
- CERBT Fund Facts – Strategy 2 (PDF)
- CERBT Fund Facts – Strategy 3 (PDF)
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:
- Investment management
- Legal services
- Ongoing administration
- Start-up, transfer of assets, termination
- Trustee/custodial services
Complete and send the following items to the CalPERS CERBT Program:
- CERBT Valuation Packet (PDF)
- Delegation of Authority to Request Disbursements (PDF)
- Two signed originals of Agreement and Election to Prefund Other Post Employment Benefits Through CalPERS (PDF)*
- Your most recent Actuarial Valuation Report or Alternative Measurement Method report
*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:
P.O. Box 1494
Sacramento, CA 95812-1494
If mailing via FedEx, send to:
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.
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
- Fiscal Year 2017/18 (PDF, 1.42 MB)
- Fiscal Year 2016/17 (PDF, 1.54 MB)
- Fiscal Year 2015/16 (PDF, 1.47 MB)
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.
To assist you in obtaining an OPEB actuarial valuation to satisfy GASB OPEB reporting requirements, CalPERS will provide, upon request, an extract of participant information we maintain for employers participating in the Public Employees Medical and Hospital Care Act (PEMHCA). There is no cost for this extract.
Since GASB standards are an accounting principle and will affect your financial statements, we urge you to contact your auditor to discuss whether you need an extract before submitting your request.
To initiate an OPEB data extract request please email us with the following information:
- Agency Name
- CalPERS agency ID Number
- The date you would like the data "as of" (e.g. Annual: 6/30/20xx or Ad Hoc: (x/x/20xx)
- Name, title, phone number, and email of designated data recipient
- The preferred mode of data delivery (email attachment or CD via FedEx)
The request must come from an employee of the requesting agency; we cannot provide the data extract to an outside consultant. Upon receipt of your initial email request we will provide you with the appropriate agreements for your review and signature to process the OPEB data extract request.
- CalPERS 457 Plan
- California Employers' Pension Prefunding Trust (CEPPT) Fund
- California Employers' Retiree Benefit Trust (CERBT) Fund
- Health Benefits
- Retirement Benefits
- Social Security & Medicare
- CERBT Fund Values
- CERBT Participating Agencies
- CERBT Online Record-Keeping System
- Governmental Accounting Standards Board (GASB)
- List of OPEB Actuaries (PDF)
- Prefunding Programs Workshops
Forms & Publications
- Agreement and Election to Prefund Other Post-Employment Benefits (PDF)
- CERBT Disbursement Request (PDF)
- CERBT Employer Contribution by Check Under Agreement and Election to Prefund OPEB (PDF)
- CERBT Valuation Packet (PDF)
- Delegation of Authority to Request Disbursements (PDF)
- GASB 75 Schedule of Changes in Fiduciary Net Position by Employer 2018 (PDF, 1.42 MB)
Frequently Asked Questions
- How do I make a contribution to my CERBT account?
There are two ways to send contributions to your CERBT account:
- Send a check with a completed CERBT Contribution by Check form (PDF). Checks sent without the form may be delayed and/or returned. Prior to mailing, email the Financial Reporting & Accounting Services Division a copy of your completed form.
- Make an electronic funds transfer (EFT). Email us for the Contribution by Wire transfer form to initiate the transfer.
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.