Options to Pay the Unfunded Accrued Liability Lump Sum
June 28, 2024
Circular Letter: 200-032-24
Topic: Financial
To: All Contracting Public Agencies
Purpose
The purpose of this Circular Letter is to announce the July 2024 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 65% 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 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 of the report.
Payment Timing and Methods
Your UAL receivables for fiscal year 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 using one of the below methods.
Note: 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 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 NameU.S. Bank 1 1 Refer to note above about July 1, 2023, bank vendor change. AddressU.S. Bank ContactContact FCSD_Cashiers@calpers.ca.gov for banking information. Information TextFor your payment to be properly processed, include the following information in the addenda.
|
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 NameBank of America Address2000 Clayton Road Bldg. D, 5th Floor ContactContact FCSD_Cashiers@calpers.ca.gov for banking information. Information TextFor credit to: State of CA, CalPERS Identify your:
|
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 our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377 888-225-7377).
Michele L. Nix, Interim Chief Financial Officer
CalPERS Financial Office