Options to Pay the UAL Lump-Sum
June 19, 2023
Circular Letter: 200-032-23
Topic: Financial
To: All Contracting Public Agencies
Purpose
The purpose of this Circular Letter is to announce the July 2023 receivables window to make a lump-sum prepayment of your required monthly unfunded accrued liability (UAL) and instructions on accepted payment methods.
Save 3.4% Interest by Prepaying Annual UAL in July
We want to make sure you are aware of this cost-saving payment option available to all 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. When your contributions are invested early in the fiscal year it may provide a greater potential of maximizing investment returns throughout the remainder of the year. Last year, nearly 80% of contracting agencies made a UAL lump-sum prepayment. We want to make sure you are aware of this payment option. 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 view your agency’s most recent actuarial valuation report on the CalPERS website. The annual UAL prepayment amount is found on page 4 under required contributions, or you can contact your assigned actuary.
Payment Timing and Methods
Your UAL receivables for FY 2023-24 are available in myCalPERS starting July 1, 2023. Lump-sum UAL prepayments must be received and posted by CalPERS no later than July 31, 2023, or myCalPERS will automatically set up a 12-month payment plan. Payments should be made using one of the below methods.
Be Prepared: We Switched 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 beginning July 1, 2023. 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. More information can be found in the previously distributed EFT Union Bank Vendor Change Circular Letter.
| 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 Thursday, July 27, 2023, with a settlement date no later than Monday, July 31, 2023. |
| EFT Credit |
Using your own financial institution payment system, send payments to the following: Bank NameU.S. Bank* *See note above about July 1, 2023, bank vendor change Address
U.S. Bank ABA/Routing Number122235821 Account Number158300057581 Information TextFor credit to: CalPERS Identify your:
|
EFT credit payments must settle no later than Monday, July 31, 2023. 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 NameBank of America Address
2000 Clayton Road Bldg. D, 5th Floor ABA/Routing Number:0260-0959-3 Account Number:01482-80005 Information TextFor credit to: State of CA, CalPERS Identify your:
|
Wires must settle no later than Monday, July 31, 2023. 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 CalPERS Electronic Funds Transfer Student Guide (PDF) located on the CalPERS website.
Questions
If you have any questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377 888-225-7377).
Michele L. Nix, Acting Chief Financial Officer
CalPERS Financial Office