US - The California Public Employees' Retirement System (CalPERS) will in future smooth market gains and losses over 15 years and widen the corridor limits for establishing actuarial value of assets to 80-120% of market value.
CalPERS’ board said it adopted the new policy as a means of providing employers with “relief” from the unpredictable costs in pension contributions. The $180bn pension fund previously smoothed gains and losses over three years and established actuarial value of assets within a corridor of 90-110% of market value.
The policy changes will reduce the volatility of contribution rates by more than 50%, said Kurato Shimada, chairman of the Benefits and Program Administration Committee.
“This is the first of many steps towards stabilising rising employer costs,” said Rob Feckner (pictured), president of CalPERS’ Board of Administration.” This is a common sense approach that helps employers and protects retirement security for all members.”
Meanwhile, CalPERS also announced it had appointed Curtis Howard assistant executive officer of the administrative services branch. Howard will be responsible for managing the fund’s fiscal services, human resources, operation support, and strategic planning and management analysis. He will report to Gloria Moore Andrews, deputy executive officer of operations. Howard came to CalPERS in January 2100 as chief of the Office of Employer and Member Health Services.
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