CalPERS Committee to Review Discount Rate

The Pension and Health Benefits Committee of the California Public Employees’ Retirement System (CalPERS) next week will consider changes to the 7.75 percent discount rate currently used for actuarial valuations. Actuarial valuations are performed annually to determine plan liabilities and the contribution rates necessary to adequately fund them. 

The discount rate used by CalPERS was last reviewed in March 2011 when the CalPERS Board of Administration (Board) voted to keep the discount rate at 7.75 percent; CalPERS’ Chief Actuary, Alan Milligan, is recommending the Board at its March 14 meeting adopt a lower discount rate of 7.25 percent for actuarial valuations dated June 30, 2011 and beyond. The impact of lowering the discount rate to 7.5 percent for miscellaneous plans would be a 3.2 to 4.5 percent increase in employer payroll; for safety plans, the increase would range from five to 6.6 percent.

Click here to read the full CalPERS analysis of the recommendation.

Veterans’ Benefits

AB 1592 (Olsen) – Support
As Introduced on February 6, 2012

Assembly Bill 1592, by Assembly Member Kristin Olsen, would authorize the governing board of any county or city to grant financial assistance, relief, and support to disabled veterans by waiving service-related fees, including building and inspection fees, charged by the county or city.

It is CSAC’s understanding that the author’s intention for the bill is to allow governing boards of counties and cities to waive building and inspection permit fees for Americans With Disabilities Act (ADA) modifications to homes that are owned by veterans with service-related disabilities. AB 1592 will be heard in the Assembly Local Government Committee on March 21.

Employees’ Rights

AB 1831 (Dickinson) – Request for Comment
As Introduced on February 22, 2012

Assembly Bill 1831, by Assembly Member Roger Dickinson, would prohibit local agencies from inquiring into the criminal history of an applicant on any initial employment application (unless the position is one for which a criminal history background check is already required by law). Local agencies would, however, retain the ability to consider the applicant’s criminal history once the agency has determined he or she meets the minimum employment requirements.

AB 1831 is part of the “Ban the Box” movement in which states, cities and counties across the country have ended inquiring into an applicant’s criminal history on the initial job application in an effort to reduce ruling out the criminally convicted population. The language in AB 1831 also references the Criminal Justice Realignment Act (AB 109) and its focus on reducing recidivism and promoting rehabilitation of offenders and their re-entry into the workforce. 

AB 1831 will be heard in the Assembly Local Government Committee on April 11.