Today CalPERS reported a preliminary 11.2% net return on investments for the fiscal year ending June 30, 2017. This new figure brings CalPERS’ Total Fund performance to 8.8% for the past five years, 4.4% for the past ten years, and 6.6% for the past 20 years.
Applying a seven percent discount rate (also known as the assumed rate of return), CalPERS estimates it is now 68% funded, a three percent increase from the prior fiscal year. Investment performance is one of several factors affecting the total CalPERS fund. Other influences include contributions from employers and employees, as well as monthly payments to retirees.
The robust returns on investments should reduce contribution levels for the State of California and school districts in fiscal year 2018-19 and for contracting cities, counties, and special districts in fiscal year 2019-20.
PartnerNate Kowalski is Chair of the firm’s Public Entity Labor and Employment Practice Group. He is an accomplished litigator who represents employers in both the private and public sectors. Mr. Kowalski has litigated hundreds of ...
PartnerJorge Luna has been practicing law since 1996 in a variety of areas, including employment, construction, business litigation, intellectual property and entertainment. For the past 17 years, Mr. Luna has focused his practice ...
PartnerJoshua Morrison represents California public school districts in all aspects of general education law. His areas of specialty practice include public employee discipline/dismissal, administrative hearings, matters before ...
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