The 2024-25 Budget: Proposition 2 Debt Payment Proposals

Mar 20, 2024 - Under the California Constitution, the CalPERS Board has plenary authority and fiduciary responsibility to invest the pension system ’s assets. The returns on these invested assets constitute the largest funding source for the system.
https://lao.ca.gov/Publications/Report/4887

Strengthening the CalSTRS Funding Plan

Mar 10, 2021 - Pension Fund Assets . The accumulated contributions of the state, employers, and members, in addition to investment returns, that can be used to pay benefits. Assets can be measured in terms of their actuarially determined value or their market value.
https://lao.ca.gov/Publications/Report/4400

MOU Fiscal Analysis: Bargaining Unit 5 (Highway Patrol)

Aug 23, 2024 - One way to measure this volatility is to use the “asset volatility ratio, ” which is equal to the market value of assets divided by the annual covered payroll. Another way to measure this volatility is to use the “liability volatility ratio, ” which is equal to the accrued liability of the plan divided by the plan ’s annual covered payroll.
https://lao.ca.gov/Publications/Report/4920

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - This is six years earlier than other bargaining units and four years earlier than the 2046 date when the Legislature will be able to use the assets in the trust to pay for benefits. Under the proposed agreement, no contributions would be made to prefund the benefit for two years.
https://lao.ca.gov/Publications/Report/5064

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - The second is payments towards the “unfunded liability. ” An unfunded liability exists when actuaries determine that there are insufficient assets to fully fund the benefit earned by employees in the past.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - As of June 30, 2023, the state and Unit 12 have set aside $328.7 million in assets to prefund the benefit and the unfunded liability associated with Unit 12 is $2.8 billion. The most recent actuarial valuation of Unit 12 retiree health benefits (as of June 30, 2023) estimates that the Unit 12 funding plan is on track to fully fund Unit 12 retiree health benefits by 2047.
https://lao.ca.gov/Publications/Report/5060

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - Under the plan, the assets of the trust fund cannot be used to pay for the benefit until 2046 or whenever the benefit is fully funded, whichever comes first. The state and Unit 9 agreed to this prefunding arrangement in 2015 with the fund expected to be fully funded for Unit 9 within 30 years.
https://lao.ca.gov/Publications/Report/5061

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - As of June 30, 2023, the state and Unit 6 have set aside $1.7 billion in assets to prefund the benefit and the unfunded liability associated with Unit 6 is $15.4 billion. Based on the most recent valuation, the Unit 6 benefit remains on track to be fully funded by 2048.
https://lao.ca.gov/Publications/Report/5058

MOU Fiscal Analysis: Bargaining Units 10 (Professional Scientists) and 18 (Psychiatric Technician)

Sep 9, 2025 - Under the funding plan, the state may not use the assets of the trust fund to pay benefit costs until 2046 or the benefit is fully funded, whichever comes first. As of the last actuarial valuation , the state was on track to fully fund the benefit in different years, varying by bargaining unit.
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - While different pension systems might use different assumptions —for example, different assumptions related to future investment returns —that affect the normal cost, they also have different policies —for example, different mixes of asset classes in their investment portfolios.
https://lao.ca.gov/Publications/Report/4800