Actuarial Circular Letter - CalPERS

888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 www.calpers.ca.gov Actuarial Circular Letter ... the discount rate was lowered from 7.0% to 6.8% automatically due to the Funding Risk Mitigation Policy (PDF). ... comparable to or slightly lower than previously determined …

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Actuarial Circular Letter - CalPERS

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ca.gov

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CalPERS Approves Lowering The Discount Rate To 7.5%; CalPERS …

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On March 14, 2012, the Board of Administration of the California Public Employees’ Retirement System (“CalPERS”) approved lowering the “discount rate” or “rate of investment return” from …

calpublicagencylaboremploymentblog.com

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CalPERS Ditches Automatic Discount Rate Reductions, Giving Power …

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Apr 16, 2024 · CalPERS earned a net return of 21.3% in fiscal year 2021, automatically lowering its discount rate to its current rate of 6.8%. However, the board had suspended the policy’s …

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CALPERS SEPTEMBER BOARD MEETING 2024 Investment …

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Last year, CalPERS' rate of return was 5.8%. The CalPERS discount rate, or expected rate of return, is 6.8%. Over the past 30 years, CalPERS has averaged an annual return rate of 7.7%. …

pecg.org

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2021 Asset Liability Management (ALM) Decision Frequently

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In July 2021, the discount rate was lowered from 7% to 6.8% due to the Funding Risk Mitigation Policy. This policy lowers the discount rate in years of good investment returns to reduce risk …

ca.gov

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Understanding The CalPERS Discount Rate And The Effect On …

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•Discount Rate —Also known as the “assumed rate of return”. It is what we assume our $304 billion in investments will return in a typical fiscal year, July 1 to June 30. •Normal Cost —The …

granicus.com

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CalPERS Board Approves 7.75% Discount Rate | PLANSPONSOR

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The Los Angeles Times reports that CalPERS’ chief actuary, Alan Milligan, had recommended lowering the assumed return rate to 7.5%, but also said that the 7.75% rate is “reasonable and …

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CalPERS Board Approves 6.8% Discount Rate - California State ...

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November 18, 2021 This week, the CalPERS Board of Administration approved a new investment strategy that will guide the system’s mix of assets over the next five years, and in doing so …

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FAQs about Actuarial Circular Letter - CalPERS Coupon?

What is the current discount rate for CalPERS?

At the November 15-17, 2021 board meetings, the CalPERS Board of Administration voted to hold the current discount rate of 6.8% and adopted new actuarial assumptions. In July 2021, the discount rate was lowered from 7% to 6.8% due to the Funding Risk Mitigation Policy. ...

When did CalPERS lowered the discount rate?

The policy automatically lowered discount rate when CalPERS achieved an investment return of 21.3% for fiscal year (FY) 2020-21. The decision concludes a nearly yearlong comprehensive review of the pension system’s investment portfolio and actuarial liabilities. ...

Why did CalPERS' investment returns fall below its 7% discount rate target?

Notably, CalPERS' investment returns in both fiscal 2019 and fiscal 2020 fell below its 7% discount rate target, which, as indicated by CalPERS management in fiscal 2021, could necessitate the use of more aggressive investment products such as private equity. ...

What is CalPERS funding risk mitigation policy?

At issue is the CalPERS Funding Risk Mitigation Policy, the plan that governs how any single year’s investment returns impact CalPERS’ long-term discount rate. The discount rate is similar to an assumed rate of return, though it also can be viewed as a way to assess the portfolio’s level of risk. ...

Will CalPERS go into effect next year?

The CalPERS board approved two more rate increases, totaling 90%, that will go into effect this year and next year unless policyholders elect to reduce their plan benefits. The board also suspended new enrollment in the plan due to concerns about its sustainability over the long term. ...

Why was the discount rate lowered in July 2021?

In July 2021, the discount rate was lowered from 7% to 6.8% due to the Funding Risk Mitigation Policy. This policy lowers the discount rate in years of good investment returns to reduce risk in the portfolio. The policy automatically lowered discount rate when CalPERS achieved an investment return of 21.3% for fiscal year (FY) 2020-21. ...