Skip to main content
MENU
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • CIOs
    • Consultants
    • Defined Contribution
    • ESG
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Private Credit
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • Special Reports
    • Washington
    • White Papers
  • International
    • U.K.
    • Canada
    • Europe
    • Asia
    • Australia - New Zealand
    • Middle East
    • Latin America
    • Africa
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2024
    • Eddy Awards
  • Resource Guides
    • Active Thematic Global Equities
    • Retirement Income
    • Fixed Income
    • Pension Risk Transfer
    • Pooled Employer Plans (PEPs)
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
  • Print
Breadcrumb
  1. Home
  2. PENSION FUNDS
April 24, 2020 01:00 PM

CalPERS adopts new contribution rates

Pension plan also reports -0.4% return for year ended March 31

Arleen Jacobius
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg

    CalPERS' board adopted employer and member contribution rates for the fiscal year ended June 30, 2021.

    Updated actuarial results show a funding ratio of 70% as of June 30, 2019, up from 69.5% as of June 30, 2018. The full actuarial report for the $375.7 billion California Public Employees' Retirement System, Sacramento, is expected to be completed later in 2020, according to a report to the finance and administration committee. The employer contributions for three of the five groups of state employees increased, while the rates of the other two decreased.

    The most significant points included a 6.7% investment return for the year ended June 30, 2019, the implementation of a new 20-year amortization policy from 30 years and an additional $2.5 billion state contribution, said Nina Ramsey, associate pension actuary at CalPERS. The state's contribution came in after CalPERS' valuation date and will not be reflected in CalPERS' funded status until the June 30, 2020, actuarial review, she said.

    The expected contribution rate for fiscal year 2021 is $7.3 billion, which is $374 million greater than fiscal year 2019. Among the reasons for the increase is the investment loss in the year ended June 30, Ms. Ramsey said. Since the investment return of about 6.7% before reduction for administrative expenses is lower than CalPERS' assumed return of 7%, an investment experience loss was added to the amortization schedule, she said.

    Separately, the board at its Wednesday meeting adopted a one-page board member new code of conduct. The code includes a requirement that board members behave and speak respectfully and "zero tolerance for harassment, discrimination and/or retaliation of any kind." The code also states that any breach of CalPERS' confidential information "will be thoroughly investigated" and that disclosure of confidential information will not be permitted.

    The board also amended the board election regulations to ask candidates to voluntarily provide additional relevant information in their candidate statements, including information regarding financial solvency, sexual harassment and any conflicts of interest that could affect their role as a board member. The change also requests candidates to state whether they would maintain the confidentiality of all CalPERS non-public information. The issue of sexual harassment came up in the last board election when former board member J.J. Jelencic ran for a board seat in 2019. Two female CalPERS staff members, Charity Bowman and Gabriela Urdaneta, both associate government program analysts, said they were advocates of the #MeToo movement and asked board members that supported Mr. Jelencic to rescind their endorsement. In 2009, Mr. Jelencic, who is also a retired CalPERS employee, had been found to have sexually harassed three co-workers by a state personnel board administrative law judge.

    Separately, CEO Marcie Frost said that CalPERS' return was -0.4% for the year, 4.6% for the three-years, 4.7% for the five years, 7% for the 10 years and 5% for the 20 years ended March 31.

    Related Articles
    CalPERS review prompts strategy switch that nets $11 billion
    CalPERS panel could shed some oversight duties
    CalPERS chooses deputy CIO for total portfolio strategy
    Recommended for You
    McClearn_ Sylvester_2024_750-main_i.jpg
    New York pension funds among those focusing more on alternatives with emerging, diverse managers
    Donald Trump speaking in the Rose Garden with two American flags behind him.
    U.K. pension funds signal shift away from U.S. assets amid policy unpredictability
    Stack of coins
    Canada, Netherlands pension plans spend twice what U.K. plans do on administrative services
    Sponsored
    White Papers
    The State of Lifetime Income Report
    The Next Wave of LDI Evolution
    Retirement security to future income wins, TIAA brings you the latest financial…
    U.S. Public Funds Top Performers: Q2 2024
    Generative AI Investing: Opportunities at a Key Tech Inflection Point
    Research for Institutional Money Management: Advancing Physical Risk Modelling,…
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    October 23, 2023 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • CIOs
      • Consultants
      • Defined Contribution
      • ESG
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Private Credit
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • Special Reports
      • Washington
      • White Papers
    • International
      • U.K.
      • Canada
      • Europe
      • Asia
      • Australia - New Zealand
      • Middle East
      • Latin America
      • Africa
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2024
      • Eddy Awards
    • Resource Guides
      • Active Thematic Global Equities
      • Retirement Income
      • Fixed Income
      • Pension Risk Transfer
      • Pooled Employer Plans (PEPs)
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
    • Print