The California Public Employees’ Retirement System (CalPERS)
published a new webpage with frequently asked questions about
the impact the COVID-19 pandemic has had on the system. The
questions are sorted in to the broad categories of Active Member,
Retired Member and Employer, and then further broken down by
topic. The answers cover a myriad of issues but some of the key
takeaways include:
Investments
The fiscal-year-to-date return for the pension fund was positive
5.6% as of December 31, 2019 and -4.1% as of March 31, 2020. This
tremendous market volatility makes any estimate of return for the
next two months highly uncertain. If markets remain relatively
stable, the best estimate is that the 2020 fiscal year return
will remain somewhere around zero. However, a good year does not
offset a bad year in this situation. For example, a 19.25% return
in 2020-21 would be required to offset a -4% return this
year.
Any investment loss that the fund suffers in the 2019-20 fiscal
year compared to the assumed 7% return will be reflected in the
June 30, 2020, actuarial valuation.
Retired Annuitants
CalPERS released a
Circular Letter outlining the impact of the Governor’s
Executive Order N-25-20. The Order lifts the work hour
limitations and wait period requirements for retired annuitants
that are being utilized to ensure adequate staffing during this
state of emergency. All other requirements/restrictions remain in
effect, including no predetermined arrangements for those under
normal retirement age or resolutions for those individuals
fulfilling a permanent position on an interim basis. The
exceptions outlined in the Circular Letter only apply to retirees
working to ensure adequate state staffing to expedite emergency
response and recovery.
Unemployment Insurance
Unemployment Insurance is not reportable for CalPERS purposes.
Current law does not allow for unemployment insurance to be
considered as compensation earnable or pensionable compensation
and is not reportable to CalPERS.
