Dec. 21, 2016
Issue #103

Editor's Note

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CalPERS Board Approves Significant Lowering of Discount Rate

Increased Employer and Employee Contributions Coming

The CalPERS board of directors on Wednesday morning approved a plan to lower its discount rate (the expected rate of return on portfolio investments) from the current 7.5 percent to 7 percent over the next three years with corresponding incremental increases in employer/employee payments over an eight-year smoothing period. The action comes less than a day after the CalPERS Finance and Administration Committee approved the change and sent its recommendation to the full board. Negotiated between representatives from CalPERS, labor and Gov. Jerry Brown’s Administration, the approved plan differs from the original CalPERS recommendation that would have lowered the discount rate immediately to 7 percent.
Meetings and Events, Pension Reform, Pensions
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