February 5, 2014

CalPERS responded today to a letter from Governor Jerry Brown criticizing the Pension Fund for staff recommendations being made to its assumptions that will be up for consideration at the CalPERS Board meeting this month:

"We appreciate the Governor's attention to this important matter. We share a mutual goal to ensure that our fund is financially sound for the long-term. As fiduciaries of CalPERS, our Board must balance a number of factors in their decision making including the state of our financial markets, our economy and the ability of our members and employer partners to pay increased pension costs. The law grants CalPERS the authority to set rates and the Board has adopted a policy that provides flexibility for employers to pay more to CalPERS if they desire. Staff's final recommendations about our asset allocation and actuarial assumptions will be available next week and presented to the CalPERS Board the following week during special Board sessions on February 18th. It is important to recognize that no decisions have been made by the Board that will impact rates at this point. Any decisions by the Board affecting future contribution rates would be made at the February Board meeting."

Read Governor Jerry Brown's letter.