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California Employers' Pension Prefunding Trust (CEPPT) Fund

The California Employers' Pension Prefunding Trust (CEPPT) Fund is a multiple employer tax exempt Trust organized under Section 115 of the Internal Revenue Code dedicated to prefunding employer contributions to defined benefit pension systems for eligible California public agencies. Even those not contracted with CalPERS are potentially eligible to participate. By joining this trust fund, California public agencies can help finance future costs in large part from investment earnings provided by CalPERS.

Since its launch in 2019, more than 90 California public employers choose CEPPT as their pension contribution prefunding trust fund. View our CEPPT Participating Agencies.

If you are interested in learning more about the CEPPT program, we offer Prefunding Programs Workshops. You may also contact us at ceppt4u@calpers.ca.gov for additional information.

Current Participating Employers

Thank you for participating in the CEPPT fund. We offer individualized customer service to our participating employers. These services include account updates that cover investment performance, cash flow analysis, and transparent reporting. This transparent reporting is highlighted by our online employer record keeping system that displays daily balances, transaction history and quarterly statements.

CEPPT Contributions are initiated through the myCalPERS system. See the Prefunding Programs’ myCalPERS Contributions Guide (PDF) for directions and information regarding this procress. If you need help getting set up with the correct permission sets in the myCalPERS system, email ceppt4u@calpers.ca.gov.

Invest with CEPPT

As the nation's largest pension fund, CalPERS strives to offer ways for Employers to sustain retiree benefits. The CEPPT provides employers an uncomplicated, low-cost investment and administration program, high-quality service, compliance reporting, and education about the value of prefunding pension contributions.

Benefits include:

  • Generates investment income from employer-controlled contributions to pay for required pension contributions
  • Reduces future employer cash flow requirements and budget dependency with investment income
  • All services provided at a single, low cost
  • Investment management by experts at CalPERS and internationally renowned consultants
  • Simple and straightforward administrative procedures
  • Superior customer service by a dedicated team of professionals

How it Works

CEPPT offers two diversified asset allocation strategies. These strategies invest in four public asset classes:

  • Fixed Income
  • Global Equity
  • Global Public Real Estate Investment Trusts (REITs)
  • Treasury Inflation Protected Securities (TIPS)

For more information on the specific allocations of each asset class, see the Investment Policy for the CEPPT Fund (PDF).

Each strategy offers a distinctly different expected investment return and return volatility based on a shorter to medium term investment horizon. These strategies rely on the same underlying set of asset classes. Strategy 1 has a higher expected rate of return and return volatility. Strategy 2 has a lower expected rate of return and return volatility. You can choose the strategy that best matches the characteristics of your plan and risk preference.

Return/Return Volatility Strategy 1 Strategy 2
Expected Return Rate 5.4% 4.9%
Standard Deviation of Expected Return 8.4% 5.9%

The following CEPPT Fund fact sheets for each asset allocation strategy are updated every month. These fact sheets provide investment performance information.

Fees

The fee rate is a function of both the fund operating costs and of the average asset balance of the fund. The fee rate is likely to vary over time and may be higher or lower in the future. CalPERS, as a governmental entity, retains no profit from the CEPPT program. Email us to learn the current fee rate.

The annual fee rate covers the following activities:

  • Investment management
  • Trustee/custodial services
  • Record-keeping
  • Ongoing administration
  • Start-up, transfer of assets, termination
  • Legal services
  • Reporting
  • Compliance

How to Join

Complete and send the following items to the CalPERS CEPPT Program:

*This Agreement and Election document must be presented to your governing body and completed and adopted in a public meeting. This is the only document that must be received as a physical copy. You can email all other documents.

If mailing via U.S. Postal Service, send to:
CalPERS
Prefunding Programs
CEPPT
P.O. Box 1494
Sacramento, CA 95812-1494

If mailing via FedEx, send to:
CalPERS
Prefunding Programs
CEPPT
400 Q Street
Sacramento, CA 95811

CalPERS will process the agreement and send you a welcome packet. The packet will include a letter confirming that the agreement has been approved, as well as an executed copy of the agreement. 

For assistance with the contracting process and submission requirements email us.

Benefit Programs

Resources

Forms & Publications

Frequently Asked Questions

  • How much does it cost to participate in CEPPT?

    Employers pay the actual cost of trust operation. CalPERS is a state agency and does not retain profit from trust operation. CEPPT staff establish a fee rate (basis point) which is charged daily to the account of the participating employers to cover the costs of the CEPPT annual program budget approved by the CalPERS Board of Administration. The fee rate is likely to vary over time and may be higher or lower in the future. Email us to learn the current fee rate.

  • Is there a minimum contribution requirement for CEPPT?

    No, contributions to the CEPPT are always voluntary and are never required.

  • What is the earliest date contributions may be made?

    Contributions will be accepted as early as one day after the date the agreement is approved by CalPERS.