CSAC Bulletin Article

CalPERS to Decide on Discount Rate

December 14, 2017

The CalPERS Board is scheduled to take action next week on an investment portfolio that will guide asset allocation, establish a discount rate, and define employer contributions over the next four years. The decision comes on the heels of a workshop held last month where CalPERS staff presented the Board with four investment options and member agencies had a chance to voice their preferences. Information on additional public comment opportunities are provided below.

Based on extensive feedback received over the past month from a variety of individual counties, CSAC is urging the Board to adopt the “Candidate Portfolio C” which will most closely stay the course with the 7 percent discount rate. In addition to already having issued a letter, CSAC will attend next week’s meetings and provide public testimony.

Meetings will take place Monday, December 18 thru Wednesday, December 20. The discount rate decision will be taken up in the Investment Committee during the morning of Monday, December 18 (see Investment Committee Dec. 18 agenda); and, the actuarial assumptions that forecast future liabilities will be taken up in the Finance & Administration Committee during the afternoon of Tuesday, December 19 (see Finance & Admin Committee Dec. 19 agenda). The full Board will take final action at its meeting on Wednesday, December 20 (see Board Dec. 20 agenda).

The opportunity to provide public testimony is available during any of these meetings, but do note that most public comment is provided at the committee level. Feel free to contact Dorothy Johnson or Tracy Sullivan with any questions about engagement opportunities at the meetings next week. For those unable to attend in person, the meetings are being webcast live and posted on the CalPERSNetwork within 48 hours.

In other CalPERS news, Margaret Brown was recently declared the unofficial winner of the runoff election for the second Member-at-Large seat on the Board. The results still need to be certified, but the preliminary count indicates that Brown won with 53 percent of the vote, even though her opponent, Michael Bilbrey, has served on the Board for the past eight years and received heavy financial backing from labor unions throughout his campaign. Brown will serve a four-year term beginning January 16, alongside David Miller who won the other Member-at-Large seat earlier.

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