CalPERS Reports Additional Savings of $162 Million
November 25, 2014
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) today announced that efforts to bring more investment management in-house and reduce consultants are among factors that have saved the Pension Fund more than $162 million in the last three fiscal years.
The savings are in addition to the $106 million CalPERS projected last week that it will save by removing ineligible participants from its health care program.
"Fiscal responsibility is one of our top priorities," said Cheryl Eason, Chief Financial Officer for CalPERS. "We've been able to minimize program costs to the benefit of our members, employers, and the Fund."
Between Fiscal Year 2011-12 and 2013-14, CalPERS achieved savings in its investment, health care, and information technology programs through the following initiatives:
Investment Office - $116.4 million in savings
- Increasing in-house investment portfolio management
- Favorable terms on fees with external investment partners
- Transfer of work from consultants to state staff
Health Program - $33.3 million in savings
- Additional health plan options that increased competition
- Hip & knee reference pricing programs
Information Technology - $12.1 million in savings
- Transfer of consultant work and knowledge to state staff
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.7 million members in the CalPERS retirement system and administers benefits for more than 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $297 billion. For more information, visit www.calpers.ca.gov.