Legislative Updates

As mentioned in the last Alert, CalPERS was about to approve new actuarial policies related to amortization and smoothing that will have a significant impact on employers’ rates. On April 17, the Board adopted a policy intended to return the system to fully funded status over the next 30 years. Some have projected that employer contributions will rise by almost 50% over a five year period starting with the 2015/2016 fiscal year. Employee contributions are not affected.

According to a recent Sacramento Bee article by Jim Kuhnhenn and Andrew Taylor, Obama’s potential 2014 budget could decrease Social Security benefits up to $1,000/year. Read the article here.

The CalPERS board has tentatively approved an employer contribution rate raise of approximately 50% over the next half dozen years, replacing a smoothing policy that kept rates low during the recession with a plan to reach full funding in 30 years. At the March 19, 2013, meeting CalPERS staff provided the Board a report

PEPRA: What’s next?

The most significant pension reform law in decades went into effect January 1.  The Public Employee Pension Reform Act (PEPRA), creates a lower tier of benefits for new public employees and makes several changes to the retirement

Eye on Sacramento

PEPRA: What’s next?

The most significant pension reform law in decades went into effect on January 1 – The Public Employee Pension Reform Act (PEPRA). PEPRA creates a lower tier of benefits for new public employees and