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Save 3.4% Interest Through a UAL Lump-Sum Prepayment

April 5, 2024
Circular Letter: 200-016-24
Topic: Financial

To: All Contracting Public Agencies

Purpose

The purpose of this Circular Letter is to inform you about the option of prepaying your annual Unfunded Accrued Liability (UAL) to save 3.4% interest.

Save 3.4% Interest by Prepaying Annual UAL in July

Springtime is the budget planning season for many public agencies, and we want to make sure you’re aware of this cost-saving payment option available to all California Public Employees’ Retirement System (CalPERS) contracting agencies. If you make a lump-sum prepayment of your annual UAL in July, we will discount your annual payment by 3.4% interest savings. When your contributions are invested early in the fiscal year it gives a better chance of maximizing potential investment returns throughout the remainder of the year. Last year, nearly 65% of our contracting agencies took advantage of this incentive and saved money. We want to make sure you’re aware of this option while planning your budget. This incentive is exclusive to the month of July.

Find Your Prepayment Amount

There are two ways to find your lump-sum prepayment amount. You can access your agency’s most recent actuarial valuation report on the CalPERS website or you can contact your assigned actuary. The annual UAL prepayment amount is found on page 4 under required contributions.

Payment Timing and Methods

Your UAL receivables for FY 2024-25 are available in myCalPERS starting July 1, 2024. Lump-sum UAL prepayments must be received and posted by CalPERS no later than July 31, 2024, or myCalPERS will automatically set up a 12-month payment plan. Payments should be made by the below methods.

Be Prepared

In July 2023, We Transitioned our EFT Bank Vendor to U.S. Bank

If you use myCalPERS to send electronic funds transfer (EFT) payments to CalPERS, you need to notify your bank of the switch to U.S. Bank, our new vendor if you have not done so already. If you don’t notify your bank of this change, your payment may be rejected if your account has existing blocks that require your approval to change.

Payment Methods and Details
Payment Method Payment Instructions Due Date
EFT Debit

Log in to myCalPERS to make a payment.

For lump-sum payments, enter the amount of the prepayment manually.

Payments should be set up no later than Monday, July 29, 2024, with a settlement date no later than Wednesday, July 31, 2024.
EFT Credit

Using your own financial institution payment system, send payments to the following:

Bank Name

U.S. Bank*

*Refer to note above about July 1, 2023, bank vendor change.

Address

U.S. Bank
Sacramento Main
621 Capitol Mall
Sacramento, CA 95814

ABA/Routing Number

122235821

Account Number

158300057581

Information Text

For your payment to be properly processed, include the following information in the addenda.

  • CalPERS ID*
  • Receivable ID*
  • Amount

EFT credit payments must settle no later than Wednesday, July 31, 2024.

If submitting a payment using this method for the first time, email CalPERS FCSD Cashiers, @fcsd_cashiers@calpers.ca.gov prior to your payment settlement to ensure timely processing.
Wire Transfer

Bank Name

Bank of America

Address

2000 Clayton Road Bldg. D, 5th Floor
Concord, CA 94520

ABA/Routing Number:

0260-0959-3

Account Number:

01482-80005

Information Text

For credit to: State of CA, CalPERS

Identify your:

  • Agency name
  • myCalPERS ID
  • Rate plan ID
  • Receivable ID
  • Reason for payment (UAL)

Wires must settle no later than Wednesday, July 31, 2024.

To ensure timely crediting to your account, any individual wire totaling more than $5,000,000 will require a 72-hour notice by emailing both FCSD Public Agency Wires, @FCSD_Public_Agency_Wires@calpers.ca.gov and your assigned actuary. Attach your UAL invoice to the email.

Additional Resources

For additional information on EFT and automated clearing house payment options, refer to the myCalPERS Electronic Funds Transfer (PDF) student guide.

Questions

If you have questions, call the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377 888-225-7377).

 

Michele L. Nix, Interim Chief Financial Officer
CalPERS Financial Office