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League Submits Letter on Revisions to CalPERS’ Mortality and Retirement Age Actuarial Assumptions

February 14, 2014
In anticipation of the upcoming California Public Employees’ Retirement System (CalPERS) Board of Administration (Board) meeting next week, the League of California Cities’ Board of Directors submitted a letter Feb. 7 regarding the proposed revisions to the CalPERS’ actuarial assumptions concerning mortality and retirement age.
 
Last month, the League worked with member cities to obtain information about how these potential rate changes would impact city budgets and services via an online survey. An impressive 100 cities throughout California participated in the survey and provided valuable input to League staff. League Executive Director Chris McKenzie is scheduled to present these survey findings and recommendations to the CalPERS Board on Tuesday, Feb. 18.  
 
Information gathered from the survey served as the foundation for the League’s support of the CalPERS staff recommendation of implementing a 20-year mortality projection with continuation of the Board’s 20-year amortization and five-year phasing policy, beginning in 2016-17. However, as explained in the letter, the League is requesting two additional options to provide cities with choices and avoid a one-size-fits-all approach. The two additional options requested are:
  • A more aggressive pre-funding option for those few local units that may be able to afford to do so.
  • A 20-year amortization and seven-year phasing option for those local governing bodies that adopt a resolution requesting that option.
For more information on the CalPERS’ proposed actuarial assumption revisions, please see the League’s Pension Information Center.


 
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