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CalPERS Board Approves Alternative No. 2 for Combining Risk Sharing Pools

May 23, 2014
The CalPERS Board of Administration on Wednesday approved the recommendation of its Finance and Administration Committee risk pool consolidation recommendation of the CalPERS actuary staff (Alternative 2).
 
CalPERS issued a news release shortly thereafter announcing the details of the change with links to the staff.

The board action also authorized the CalPERS actuaries to work with any affected city to provide them with the necessary contribution rate information (instead of a fixed dollar amount) to implement any existing memo of understanding (MOU) not more than three years old if the MOU was signed prior to the CalPERS board action and has a link between the member contribution and the employer contribution.
 
Finally, the CalPERS actuaries indicated they are working with cities that are most disadvantaged by this change to attempt to help them deal with their increased costs in a more manageable way. Bill Slaton, the chair of the Finance and Administration Committee, strongly encouraged these steps.
 
The League staff expresses appreciation to the CalPERS staff for their cooperation and support for a one month delay in implementing this change and to the affected cities for responding to our requests for briefings, survey responses and information on how to make this change that was made necessary by the passage of the 2012 pension reforms.


 
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