CalPERS Annual Report Details Fund Finances
January 5, 2017
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Amy Morgan, Information Officer
Fiscal Year 2015-16 Comprehensive Annual Financial Report Now Available
SACRAMENTO, CA - The California Public Employees’ Retirement System (CalPERS) released its annual financial report, which provides a detailed summary of the pension plan’s investment activities and performance over a one-year period ending on June 30, 2016. The Comprehensive Annual Financial Report (CAFR) (PDF) presents an in-depth statistical analysis of pension and health finances of the System and for the thousands of contracting California cities, counties, and special districts.
"Sound financial reporting is imperative to our funds' economic security," said Marcie Frost, CalPERS chief executive officer. "Our annual report is a key component of our fiscal responsibility that strengthens our accountability and transparency to our members, contracting employers, and the public we serve."
Significant data in the CAFR for Fiscal Year ending June 30, 2016:
- Investment assets stood at nearly $302 billion for the Public Employees' Retirement Fund (PERF). California-based investments increased from the previous fiscal year by 0.5 percentage points to $26.8 billion.
- Investment returns in the PERF earned 6.9 and 6.8 percent over the past three and five years, respectively despite volatile financial markets. Fixed income investments retuned 9.3 percent, while investments in real assets helped balance the fluctuations in the global equity market.
- The funding level for the PERF is 73.1 percent as of June 30, 2015. As a result of lower-than-expected investment returns the PERF funded status has been estimated to decrease to 69 percent for June 30, 2016.
- The removal of ineligible dependents through the Dependent Eligibility Verification Process saved approximately $122 million through cost avoidance. For better pricing and wider coverage, CalPERS also offered a new option to Medicare members and expanded eligibility for the CalPERS Long-Term Care program.
- The California Employers' Retiree Benefit Trust (CERBT) Fund saw a 6.7 percent increase over the previous fiscal year in the number of employers that contract with CalPERS to prefund future retiree health care obligations. As of November 2016 the program reached a milestone and signed its 500th public agency. The CERBT is an optional program administered by CalPERS with total investment assets of approximately $5.4 billion, more than an $800 million increase over the previous fiscal year.
- The number of retirees and beneficiaries increased 6.1 percent from the previous fiscal year to nearly 650,000.
- The number of employers who contract for pension benefits increased to 3,021 from 3,007 from the previous fiscal year.
Although the CAFR provides a comprehensive financial picture of the multidimensional CalPERS pension fund, more specific information regarding each of CalPERS' contracting public agencies are available online in the Public Agency Valuation Reports. These reports detail the financial status of each public agency pension plan and establish 2017-18 Fiscal Year employer contribution rates for 3,021 contracting public agency employers.
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 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 $305 billion. For more information, visit www.calpers.ca.gov.