CalPERS Hardship Exemption Under Review – Comments Requested
March 8. 2018
Following the Board’s recent decision to shorten the amortization schedule and thereby adding further stress on employer agencies, the California Public Employees’ Retirement System (CalPERS) is now reexamining the eligibility requirements under the hardship exemption which would allow public agencies to maintain a 30-year amortization, instead of changing to a 20-year schedule.
When the amortization policy was up for consideration, several public agencies expressed their frustration to the CalPERS Board in regards to the hardship exemption, asserting that the eligibility criteria are overly rigid and the process is unnavigable. In response, the Board directed staff to work with stakeholders and come back with recommended amendments. CSAC is currently working with CalPERS staff, alongside the League of California Cities and California Special Districts Association (CSDA), to develop a more meaningful “means test” for hardship qualification that is clearer and more realistic.
CSAC will continue to keep counties apprised of any new developments via the Bulletin; however, interested parties are encouraged to join CSAC’s internal CalPERS Feedback Committee for detailed email updates and occasional conference calls.