December 16, 2014

We agree with the California State Controller that prefunding retiree healthcare is a fiscally prudent move to help close the unfunded liability gap in health care for the State’s retirees. CalPERS optional California Employers' Retiree Benefit Trust (CERBT) Fund is helping employers at all levels take a proactive step to ensure the long-term sustainability and security of health benefits for their retirees.

The fund has 439 participating employers, including the State of California, which contributes for three employee bargaining units that took the proactive step of agreeing to prefund health coverage for their members. The CERBT fund is currently valued at more than $4 billion and is currently the largest Other Post-Employment Benefits fund in California.

Additional Resources

CalPERS CERBT Program information
John Chiang News Release
State of California Retiree Health Benefits Program GASB No. 43 and 45 Actuarial Valuation Report as of June 30, 2014 (PDF, 1.04 MB)