August 13, 2024
Circular Letter: 200-038-24
Topic: Actuarial

To: All Public Agency Employers

Purpose

The purpose of this Circular Letter is to inform you that the 2023 actuarial valuation reports for contracting agencies are now available and uploaded in myCalPERS to view.

Employer and Member Contribution Requirements

The 2023 valuation reports use demographic data and financial information through June 30, 2023 to set the required contributions for public agency employers and certain members for fiscal year (FY) 2025-26.

As required by the Public Employees’ Pension Reform Act (PEPRA), 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. Some PEPRA member groups may experience a change to their contribution rate for FY 2025-26 as a result of the 2023 valuations. Refer to the cover letter of the report for information on the PEPRA member contribution rate(s) for your rate plan for FY 2025-26.

The recently reported preliminary investment return of 9.3% for FY 2023-24 has no impact on required employer or member contributions for FY 2025-26, due to it being greater than the assumed discount rate of 6.8%. The impact of this investment gain will be reflected in the June 30, 2024 valuation reports that set the employer contribution rates for FY 2026-27 and will be available in August 2025.

More Information

The June 30, 2023 actuarial valuation reports will also be available on the CalPERS website by the end of September. You can find the Public Agency Valuation Reports on our website.

The updated valuation results will be available for projection purposes in Pension Outlook in early September.

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