The California Public Employees’ Retirement System (CalPERS) Board of Administration has approved new actuarial policies that are aimed at returning the System to fully-funded status within 30 years.   Increasing contributions more rapidly in the short term is expected to result in almost a 25 percent improvement in funded status over a 30-year-period. The amortization would have a five-year ramp-up of rates at the start and a five-year ramp-down at the end.  Nevada County’s Chief Financial Officer Joe Christoffel explains  CalPERS action.
click to hear Joe Christoffel

Nevada County has already taken steps to lessen the impact of it’s retirement obligation.  The county has 775 full-time equivalent employees  enrolled in CalPERS and all new employees after January 1, 2013 are in a lower tier of benefits. Still, Christoffel says the new policy by CalPERS will increase costs in the short term.
click to hear Joe Christoffel

Christoffel says the change will not take effect until the 2015-16 budget year.  In the  2012-13 budget the county contributed approximately $12.5 Million to CalPERS.
CalPERS says  based on investment return simulations performed for the next 30 years, increasing contributions more rapidly in the short term is expected to result in almost a 25 percent improvement in funded status over a 30-year-period.