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CalPERS June 2020 Board Meeting Recap

CalPERS Board Meeting Recap

The CalPERS Board met from Monday, June 15, through Wednesday, June 17, via livestream as all board members and presenters participated from their respective remote locations.

A recording of all the public meetings has now posted to the CalPERS YouTube Channel.

Here are some highlights from this month’s meetings.

Investment Committee

On Monday, CalPERS CIO Ben Meng discussed the strategy developed to achieve our 7% targeted return rate necessary for the long-term health of the fund. Get more in-depth information in our For the Record, FAQ: Toward A 7% Solution.

The board also heard the first report regarding the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD). This report (PDF) sets out the goal of CalPERS’ investment strategy on climate change to ensure the portfolio is resilient to risk and positioned for the investment opportunities that the energy transition brings, in line with the target rate of return.

CalPERS has four channels in our climate change strategy: engagement, to ensure that the companies we invest in bring down the emissions that contribute to global warming; advocacy, to support the policy and regulation that will foster the energy transition; integration, where we bring consideration of climate change risk and opportunity into our investment decision-making, and partnerships. CalPERS’ strategy through engagement, advocacy, integration, and partnerships is having an impact.

Pension & Health Benefits Committee

On Tuesday, the 2021 Health Maintenance Organization (HMO) and 2021 Preferred Provider Organization (PPO) proposed health premium rates were presented. The preliminary overall increase is 4.4%. Final rates will be presented to the board for approval at the July meeting.

The board adopted new health plan, coverage area, and benefit design changes for 2021. These changes include a three-county service area expansion to Blue Shield Trio (Basic) into Santa Barbara, San Luis Obispo, and Ventura counties; the addition of a Sharp Medicare Advantage plan; and expansions to Kaiser Senior Advantage, UnitedHealthcare Medicare, and Anthem Blue Cross Select Medicare plans.

In addition, the committee approved the recommendation to temporarily suspend applications for the Long-Term Care Program to weigh the potential for future premium increases. We’ll spend the summer exploring all the options concerning the program, and the board will revisit this topic in September.

Next Board Meeting

The next board meeting occurs July 13-15 and will be livestreamed on our website.