Recordings of all the public meetings are posted on the CalPERS YouTube Channel.
Here are some highlights from this month’s meetings.
On Monday, November 15, the CalPERS Board selected a new asset allocation mix that will guide the fund’s investment portfolio for the next four years, while at the same time retaining the current 6.8% target it assumes those investments will earn over the long term. The board also approved adding 5% leverage to increase diversification.
The decision concludes a nearly yearlong comprehensive review of the pension system’s investment portfolio and actuarial liabilities. Known as the Asset Liability Management (ALM) process, the board conducts the evaluation every four years.
The new actuarial assumption changes impact members in two key areas:
- Increases retirement benefit amounts in general by a few dollars ($2-$3) per $1,000 if a member selects a payment option at retirement that provides a benefit for a spouse or beneficiary. It does not impact retirement benefits if the member selects an unmodified benefit allowance.
- Increases cost of service credit purchases for some types of service credit. For most members, the cost increase varies depending on the type of service credit purchased.
Retirement applications with a retirement date of November 18, 2021, or after will be calculated using the new rates. Service credit purchase requests received by CalPERS November 18, 2021, or after will also be calculated using the new rates. Additional information can be found in our news release on this topic.
On Tuesday, November 16, CalPERS’ Basic Financial Statements (PDF) for Fiscal Year 2020-21 were approved by the Board’s Finance & Administration Committee.
Additionally, our Pension & Health Benefits Committee approved the benefit design changes and service area expansions for the 2023 health plan year. Our health team conducted an extensive analysis of each proposal from our health plans with a goal of providing affordable plans and continuity of care for our members. You can review the Approval of Health Benefits Program Proposals for the 2023 Plan Year (PDF) for more details.
Next Board Meeting
The board will meet again on December 14, 2021, and January 18-19, 2022, and the meetings will be livestreamed.
This post was updated 12/8/21.