Dec. 21, 2016 Issue #103 Editor's NoteFor a PDF copy of the newsletter please visit the League's website. For more updates from the League, follow us on Twitter and like us on Facebook.CalPERS Board Approves Significant Lowering of Discount RateIncreased Employer and Employee Contributions ComingThe 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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