CalPERS ditches automatic discount rate reductions, giving power …

Apr 16, 2024 · CalPERS walked back a policy that automatically reduced the pension fund's expected investment return when actual investment returns outperform the expected return by …

CouponFollow Extension

3%
OFF

CalPERS To Consider Further Adjustments To The Discount Rate; Cities ...

3 weeks from now

Sep 8, 2021 · In July, CalPERS announced that their investment returns for fiscal year 2020-21 was 21.3%. This triggered the Funding Risk Mitigation Policy and an automatic reduction in …

calcities.org

3%
OFF

Pension Costs: What Cities Need To Know About The Discount Rate, …

3 weeks from now

Sep 1, 2021 · While CalPERS reported a healthy 21.3% investment return for fiscal year 2020-21, it simultaneously triggered a reduction in the discount rate from 7.0% to 6.8%, which the …

westerncity.com

50%
OFF

CalPERS Discount Rate Reduction And The Impacts On Local Public ...

3 weeks from now

In December 2016, CalPERS (PERS) announced it will lower its discount rate (expected earnings rate) from 7.50% to 7.00%, phasing the change in over a three year period. This NHAlert …

nhaadvisors.com

8%
OFF

CalPERS Board Approves 6.8% Discount Rate - Counties.org

3 weeks from now

Nov 18, 2021 · The discount rate, often referenced as the assumed rate of return, is one of the main components used to calculate employer and employee contribution rates. In July, high …

counties.org

5%
OFF

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

3 weeks from now

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

FAQs about CalPERS ditches automatic discount rate reductions, giving power … Coupon?

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. ...

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. ...

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. ...

What is a CalPERS pension Buck?

The CalPERS Pension Buck illustrates the sources of income that fund public employee pensions. Based on a 20-year average ending June 30, 2024, for every dollar CalPERS pays in pensions: 55 cents come from investment earnings, 34 cents come from employer contributions, and 11 cents come from employee contributions. ...