A recording of all the public meetings is posted on the CalPERS YouTube channel. Here are some highlights from this month’s meetings.
Monday’s Meeting:
Investment Committee
CalPERS For California Report
The board heard a report on CalPERS’ private investments in California and the jobs they supported during the 2020-21 fiscal year. The report analyzed CalPERS portfolio holdings data for that fiscal year and researched ancillary benefits, which include economic and community impacts of CalPERS private market investments.
Key findings included that at the end of the fiscal year, California investments totaled $58.7 billion, or 12.1% of the Total Fund and that these investments supported an estimated 103,265 jobs.
For more information, review the agenda item (PDF) or the CalPERS for California 2021 report (PDF).
Response to Climate-Related Disclosure News
The board responded to the recommendations of the Taskforce on Climate-Related Financial Disclosure (TCFD) and California Senate Bill (SB) 964. The TCFD is an industry-led taskforce that reviews how the financial sector can take account of climate-related issues and has been publicly supported by CalPERS since its 2015 establishment.
SB 964 also focuses on the financial sector’s impact on the environment and requires the CalPERS Board to publicly report by January 1, 2020, and every three years thereafter, until January 31, 2035. CalPERS is dedicated to minimizing the risk to the climate by our portfolio and will continue to work to research and prepare for the effects of climate change.
For more information, check out the agenda item (PDF), the presentation (PDF), or the CalPERS’ response report (PDF). To learn more about CalPERS’ efforts against climate change, visit Climate Change.
Consultant Review of CalPERS Divestments
An annual review of CalPERS divestments was provided to the board by Wilshire Associates. Reviews of existing CalPERS divestments are conducted periodically to support the Investment Committee in evaluating whether existing investment strategies continue to support the System’s investment objectives. This report provides an updated financial analysis of CalPERS’ divestments and takes into consideration the “5-year affirmation” process for active CalPERS divestments.
For more details, review the agenda item (PDF) or the Consultant Review of CalPERS Divestments (PDF).
Tuesday’s Meetings:
Pension & Health Benefits Committee
Definition of Limited Duration Employment
The board voted to approve a proposed regulation to define limited duration employment. This proposed regulation explicitly defines limited duration to allow retired persons to provide services using the skills and experience they earned over their active career, while balancing the CalPERS-covered public employers’ need for flexibility in managing their budgets. These revisions follow a 45-day public comment period. There will be a 15-day public comment period to respond to these revisions tentatively scheduled for early December.
For more information, review the agenda item (PDF), the regulation showing revisions made (PDF), or the revised regulation (PDF). A record of public comments made during the 45-day public comment period is available via the summary of public comments received (PDF), the copy of public comments received (part 1) (PDF), or the copy of public comments received (part 2) (PDF).
Health Benefits Program Annual Report for Plan Year 2021
The committee was provided with the CalPERS Health Benefits Program Annual Report, which contains a comprehensive view of the CalPERS Health Benefits Program for the 2021 plan year. The health team collaborates with several program areas across the organization to collect and present information such as health coverage offerings, geographic coverage, basic health plans actuarial values, average annual member out-of-pocket costs by health plan, and more.
Check out the agenda item (PDF) or the Health Benefits Program 2021 Annual Report (PDF) for more information.
Health Benefits Program Proposals for the 2024 Plan Year
The board approved two proposals for the 2024 plan year: a site of care member incentive program for labs for PPO Basic members and a pharmacy mail-order opt-out program for HMOs and PPO Basic plans using CalPERS pharmacy benefit manager.
Review the agenda item (PDF) or the Health Benefits Program Proposals presentation (PDF) for more details.
Finance & Administration Committee
Annual Review of Funding Levels and Risks Report
A report of the current funding levels of the system and the near-term outlook for required contributions was provided to the board. The report also discusses current risk factors to the stability of the system, including current high inflation, lingering effects of the Coronavirus pandemic, and potentially unfavorable near-term economic conditions. These risk measures can be used to assess the effectiveness of funding policies, actuarial assumptions, and methods to ensure the long-term sustainability of the system.
For more information, review the agenda item (PDF), the 2022 Annual Review of Funding Levels and Risks (PDF), or the 2022 Annual Review of Funding Levels and Risks Report presentation (PDF).
Next Board Meeting
The board will meet next from February 13-14, 2023. View the Board Meetings Calendar for the full schedule.