CalPERS' CERBT Program Reaches Milestone
November 22, 2016
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) has reached a major milestone in its post-employment benefits prefunding trust with the signing of its 500th public agency. The City of Pico Rivera joined the California Employers' Retiree Benefit Trust (CERBT) to secure health benefits for the city's future retirees.
The CalPERS CERBT Fund provides a way for local eligible California public agencies to prefund the liabilities associated with their Other Post-Employment Benefits (OPEB). This includes retiree benefits such as health, vision, dental, and life insurance.
"This is a great achievement and highlights our partnership with public agencies across the state. Even agencies that aren't contracted with CalPERS for health and retirement benefits can join the CERBT Fund," said Chief Financial Officer Cheryl Eason, who oversees the fund. "Having our 500th participant underscores the confidence public agencies have in our excellent investment management, administration, and compliance with government accounting standards."
The City of Pico Rivera established its trust with CERBT with a $4 million contribution for Fiscal Year 2016-17. Both the city council and management team supported the effort. City Manager René Bobabdilla said, "We are committed to managing our finances in a responsible manner, which includes addressing our long-term liabilities and helping ensure that future retirees can count on having a health benefit program."
CalPERS began the CERBT Program in 2007 with the City of Thousand Oaks as its first customer to provide a way for local eligible California public agencies to pre-fund their OPEB commitments. With more than $4 billion in employer contributions and $5 billion in assets, CalPERS' CERBT Program is the largest OPEB fund in California.
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 1.8 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 $299 billion. For more information, visit www.calpers.ca.gov.