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CalPERS fires back against bill requiring liability calculations on Treasury rates

U.S. Rep. Devin Nunes, R-Calif.

CalPERS officials have sent a letter of concern regarding a bill reintroduced in June by Rep. Devin Nunes, R-Calif., that would require state and local pension plans to disclose their liabilities based on U.S. Treasury rates rather than expected rates of return on investments.

Mr. Nunes reintroduced the bill co-sponsored by Reps. Ken Calvert, R-Calif., Chris Stewart, R-Utah, and Tom McClintock, R-Calif., on June 28. Mr. Nunes proposed similar bills in 2010, 2011 and 2013. None of legislation passed.

In a letter dated July 24 to the California delegation of the House Democratic caucus, CalPERS CEO Marcie Frost said the "legislation would impose unnecessary and burdensome federal pension reporting mandates and financial disclosures on states and local governments."

She said the bill would impact pension plans including the $359.3 billion California Public Employees' Retirement System, Sacramento, without improving retirement system funding or protecting member benefits.

"CalPERS believes GASB (Governmental Accounting Standards Board) and the ASB (Actuarial Standards of Practice) are the appropriate standard-setting authorities," Ms. Frost said. "The federal government has no financial obligation for state and local pensions and imposing onerous federal reporting mandates serves no constructive purpose."