June 1, 2023
Circular Letter: 200-027-23
Topic: Actuarial

To: All Public Agency Employers

Purpose

The purpose of this Circular Letter is to remind public agency employers that contribution rates for most of the Public Employees’ Pension Reform Act (PEPRA) member groups will increase on July 1, 2023.

Background

As required by PEPRA, public agency members hired on or after January 1, 2013 (PEPRA members) are subject to possible increases or decreases to their contribution rate based on the results of the annual actuarial valuations. Most PEPRA member groups will experience a change to their contribution rate for fiscal year (FY) 2023-24 as a result of the assumption changes reflected in the 2021 actuarial valuations.

How to Find Your Agency’s PEPRA Member Rate

The contribution rates for all public agency PEPRA members can be found on the California Public Employees’ Retirement System (CalPERS) website on the Public Agency PEPRA Member Contributions webpage.

The PEPRA member contribution rates for FY 2023-24 can also be found by navigating to the Retirement Contract page within myCalPERS. In the Rate Summary panel, select the link for the Effective Employer Rate for the appropriate Rate Plan, then select the View link in the Valuation Report column for the 7/1/2023 Rate Effective Date.

A table disclosing the new PEPRA contribution rate can be found at the bottom of the first page of the cover letter of your June 30, 2021 annual report.

Update Your System

You will need to update your internal payroll system with the new member contribution rates. The rate change is effective for pay periods ending July 1 or later. If your payroll ends on July 1 or later, your employees will see the member contribution rate increase earlier in their paycheck, even if the time they worked was in the prior fiscal year. These rates are already loaded in myCalPERS. Your payroll will not post if calculations are not updated and reported correctly.

Support Your Employees Who Are Impacted

You can learn more about these changes and how to support your employees who are impacted by viewing our webinar. In addition, this new webpage contains links to other resources, such as a list of FAQs and an Employer Toolkit to help communicate rate changes to your employees.

Questions

If you have questions, contact the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

 

Scott Terando, Chief Actuary
Actuarial Office