Upcoming Workshop on CalPERS Discount Rates
December 15, 2016
The Finance and Administration Committee of the California Public Employee’s Retirement System (CalPERS) will be hosting a workshop on the discount rate during its open session meeting next Tuesday, December 20. The workshop will build upon previous discussions about securing CalPERS’ future – managing funding risk, stakeholder outreach and engagement. This includes the impact to the funded status, normal costs, and unfunded accrued liabilities if the Board of Administration (Board) elects to lower the assumed rate of return.
Counties will recall that CalPERS’ adopted a risk mitigation strategy last November to incrementally lower its discount rates in years of good investment returns. However, following recent disappointing returns, CalPERS’ staff and public agencies are urging the Board to consider lowering its discount rate to ensure Fund stability in future years.
All are encouraged to attend the workshop and provide public comment as the Committee considers the options before them—options which could have significant impacts for counties that contract with CalPERS for retirement benefits.
The workshop is scheduled to begin at 1:15 p.m. on December 20 and is being held in the Robert F. Carlson Auditorium at CalPERS Headquarters, located in Sacramento at 400 P Street. The workshop is the last item on the meeting agenda, but members of the public are welcome to come at any point during the meeting. A webcast of the live meeting is also available for those who aren’t able to attend in person.