On March 14, 2012, our Blog Post examined CalPERS’ decision to lower the discount rate from 7.75 percent to 7.5 percent in its assumption when determining employer contribution rates. At a meeting of the CalPERS Board of Administration, staff were asked to study the possibility of phasing-in the increased employer contribution rates over a two
CalPERS Approves Lowering The Discount Rate to 7.5%; CalPERS Employers Will Be Paying Higher Contributions
On March 14, 2012, the Board of Administration of the California Public Employees’ Retirement System (“CalPERS”) approved lowering the “discount rate” or “rate of investment return” from 7.75% to 7.5% in its assumptions when it determines employer contribution rates. This means that employers who contract with CalPERS for pension benefits will see their employer contribution