Public Employees Retirement System Sacramento

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California Employers Retiree Benefit Trust Fund

Calpers Sells $6 Billion of Private Equity at Discount

The California Employers Retiree Benefit Trust Fund was established by CalPERS in March 2007 to provide California public agencies with a cost-efficient, professionally managed investment vehicle for prefunding other post-employment benefits such as retiree health benefits. Prefunding reduces an agency’s long-term OPEB liability. Participating agencies can use investment earnings to pay future OPEB liabilities, similar to the CalPERS pension fund in which three out of four dollars paid in retirement benefits come from investment earnings.

372 Transfer Of Safety Members To Pers Continuation Of Pers Agreements

The city council may enter into a contract with the Board of Administration of the Public Employees Retirement System for participation in that system of the city and employees who are, as of the effective date of any such contract, safety members of the Sacramento City Employees Retirement System . Any such contract shall be subject to the following conditions:

The new contract shall cover all active safety employees who are members of SCERS.

The existing contract with PERS for participation in that system or the city and employees whose date of city employment is on or after January 29, 1977 shall continue in effect, as amended by the city council from time to time.

The new contract shall specify that active safety employees shall be transferred to PERS and become PERS local safety members.

The benefits prescribed in the new contract shall, for safety employees, be as follows:

2% at age 50 with 3% cost-of-living allowance for transferred active safety SCERS employees.

2.5% at age 55 with 2% cost-of-living allowance for employees hired after the effective date of the new contract, with the statutory employee contribution rate. If the statutory employee contribution rate is other than 9%, the actual employee contribution rate shall be 9% of compensation.

The city council, if it enters into such contract, is authorized to take any action on behalf of the city required or permitted under the Public Employees Retirement Law.

City Of Sacramento V Public Employees Retirement System

CITY OF SACRAMENTO, Plaintiff and Respondent, v. PUBLIC EMPLOYEES RETIREMENT SYSTEM, Defendant and Appellant.

COUNSEL

John K. Van de Kamp, Attorney General, Richard M. Frank and Cathy Christian, Deputy Attorneys General, for Defendant and Appellant.

Davis, Reno & Courtney, Alan C. Davis and Cindy O’Hara-Varela as Amici Curiae on behalf of Defendant and Appellant.

James P. Jackson, City Attorney, and William P. Carnazzo, Deputy City Attorney, for Plaintiff and Respondent.

OPINION

DAVIS, J.

Introduction

We reverse. The FLSA does not preempt the state’s ability to define “overtime” in a manner inconsistent with federal law where there is no actual conflict with or frustration of the purposes of the federal minimum wage and maximum hour law. As a result, PERS may characterize federal overtime pay as nonovertime compensation for the purposes of determining employer contributions to the state retirement system where the federal premium is received for performing work which is not in excess of that considered normal. Because the City’s firefighters are normally required to work 10 hours more than the federal maximum hour standard, the FLSA premium received for that work is “special compensation for performing normally required duties.” Finally, we hold that PERS’s interpretation does not violate article XVI, section 17, subdivision of the California Constitution.

Factual and Procedural Background

Standard of Review

Discussion

The Public Employees’ Retirement Law

Disposition

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Calpers: Public Pension In United States North America

California Public Employees’ Retirement System is a Public Pension located in Sacramento, CA United States, North America. Current Assets for CalPERS is $440,000,000,000 and SWFI has 326 periods of historical assets, 18 subsidiaries, 34 Opportunities/RFPs, 184 personal contacts available for CSV Export.

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Eligibility Worker / Sacramento

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    Job Posting For Compensation Compliance Analyst At California Public Employees’ Retirement System

    The California Public Employees Retirement System is the nations largest public pension fund, providing retirement and health benefits to public employees, retirees, and their families. Headquartered in downtown Sacramento, we are a destination employer with an international reputation for leadership and innovation. At CalPERS, were committed to people the people we serve, our team members, and the larger community around us. CalPERS is situated near the Napa Valley, San Francisco, Lake Tahoe, and other desirable destinations, and we offer competitive benefit packages, compensation, and opportunities for advancement.

    Telework Information: Act quickly to apply for this hybrid position, where youll enjoy up to 40% remote work, each week!

    The California Public Employees Retirement System is recruiting for a full-time permanent Staff Services Analyst position in the Employer Account Management Divisions Compensation Compliance & Review Section.

    Travel may be required.

    Desirable Qualifications

    In addition to evaluating each candidate’s relative ability, as demonstrated by quality and breadth of experience, the following factors will provide the basis for competitively evaluating each candidate:

    Job Type: Full-time

    Studies Commissioned By Calpers On Its Economic Impacts

    CalPERS commissioned three studies that were released in 2007-2008 about the economic impacts of the following:

    • CalPERS retirement benefits payments. Prepared by California State University, Sacramento, and released in April 2007, this study found that the direct payments of $7.7 billion in 2006 led to a total impact of $11.8 billion.
    • CalPERS investments. Prepared by California State University, Sacramento, and released in September 2007, this study found that the direct investments of $8.3 billion in 2006 led to a total impact of $15.1 billion.
    • CalPERS health care benefits payments. Prepared by Lincoln Crow Benefits Research Group and released in April 2008, this study found that the direct payments of $4.2 billion in 2006 led to a total impact of $7.6 billion.

    Key findings of the CalPERS Economic Impacts in California Report for the fiscal year ending June 30, 2012 included:

    • CalPERS benefits returned $10.85 in economic activity to California for each taxpayer dollar contributed to the system.
    • The total economic revenue generated by CalPERS benefits was more than $30.4 billion.
    • CalPERS benefits created 113,664 jobs throughout California.
    • Investments in California accounted for $20.7 billion, or approximately 8.9 percent, of the CalPERS portfolio.
    • The CalPERS investment portfolio, which included public and private equities, real estate, fixed income, and infrastructure, supported 1.5 million jobs.

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    Other Tools And Information

    This section describes the broad range of resources SCERS provides to help our members learn and understand their SCERS benefits.

    Pension Planning Webinars

    SCERS sponsors pension planning webinars for members who are within 10 years of retirement, providing in-depth information on your SCERS benefits and preparing for retirement.

    SCERS Resources

    While the Member Handbook is meant to serve as a complete guide to your SCERS benefits, it is not the only source of information. For further information and assistance, consider the following additional resources:

    • SCERS website at www.scers.org
    • SCERS forms, publications, and announcements
    • SCERS Board of Retirement materials including agendas and minutes

    At our website, you can access forms and use the Benefit Calculator to estimate the monthly Service Retirement allowance you may be eligible to receive. Go to SCERS website and choose the link titled Benefit Calculator found on the Home page.

    If you have questions regarding required forms or the retirement process in general, you can contact SCERS directly and/or request an appointment with a Retirement Benefits Specialist.

    Model Documents for Domestic Relations Orders

    To assist members and their spouses/registered domestic partners who agree to divide retirement benefits upon dissolution, SCERS provides model documents for use when preparing a DRO. The model documents and other information offered by SCERS can facilitate a quick and cost-effective division of SCERS benefits.

    Inquire About The Availability Of Documents In Alternate Formats

    There’s a Place for You

    If you have a disability and the format of any material on our website interferes with your ability to access some information contained on our site, please email our office at . To enable us to respond in a manner that will be of most help to you, please indicate the nature of the accessibility need, your preferred format the web address of the requested material, and your full contact information so we can reach you if questions arise while fulfilling your request.

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    Deferred Compensation And Other Supplemental Income Plans

    CalPERS is responsible for a deferred compensation retirement plan and two other plans to supplement income after retirement or permanent separation from State employment. As of December 2014:

    • The CalPERS 457 Plan serves 27,526 participants and had $1.296 billion in assets.
    • The Peace Officers’ & Firefighters’ Defined Contribution Plan had 33,128 participants and $497 million in assetsfunded by a State contribution of 2% of base pay.
    • A member-funded Supplemental Contributions Program for 521 participants had $20.3 million in assets.

    Disability Fraud Tip Line

    The CalPERS Disability Fraud Tip Line is a voice mailbox to report CalPERS members suspected of misrepresenting their disabilities to collect retirement benefits. You can provide your name and phone number, or leave an anonymous voicemail. You will not be contacted unless you specifically ask to be called for further details. All information will remain confidential as much as possible.

    Contact the tip line at 330-5770 and include the following information:

    • Name of the suspected member
    • Spelling of the suspected member’s name
    • Suspected member’s address or city
    • Details of the suspected member’s questionable activity
    • Reason for your suspicion

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    Disability Retirement And Industrial Disability Retirement

    CalPERS offers two types of retirement benefits if a worker is disabled. In “industrial disability retirement,” the “disability is due to a job-related injury or illness” in contrast, “disability retirement” implies that the disability was not necessarily caused by employment. The specific benefits vary by employer, by the contract between CalPERS and the employer, and by the employee’s occupation.

    Two major controversies have affected CalPERS’ disability retirement and industrial disability retirement program over the years. First, in the mid-1990s and again in the mid-2000s there were concerns about inappropriate industrial disability retirement for public safety personnel, including:

    Second, “a 1980 state law that tied public safety officers’ disability benefits to the age at which they were hired” caused an age discrimination complaint with the Equal Employment Opportunity Commission in 1992 which eventually led to a 1995 class action lawsuit against CalPERS and other state and local agencies. In January 2003, CalPERS settled the suit by agreeing to pay $50 million in retroactive benefits and $200 million in future benefits to 1,700 officers the settlement “was by far the largest in the EEOC’s history”. Furthermore, CalPERS agreed to not use an age-based formula in the future, which “basically nullifie” the 1980 state law.

    California Government Operations Agency

    Calpers Bet on Sacramentos Planned Tallest Tower Splits Board
    .gov

    The Government Operations Agency is the agency responsible for administering state operations including , , , and . Amy Tong was appointed Secretary of Government Operations by Governor in March of 2022. Previously, the role was held by Secretary Yolanda Richardson and Secretary Marybel Batjer, who was appointed as the inaugural agency secretary in June 2013 by then-Governor .

    Also under the CalGovOps purview is the DMV Reinvention Strike Team, established by Governor Gavin Newsom on January 9, 2019. The team is tasked with undertaking comprehensive modernization and reinvention of the troubled California Department of Motor Vehicles and make recommendations for new long-term leadership and reform at DMV with an emphasis on transparency, worker performance, speed of service and overall consumer satisfaction. The team was led by former CalGovOps Secretary Marybel Batjer and staffed by agency employees.

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    Investment Income Gains And Losses 1999

    CalPERS current fund balance value as of June 2021 is 466.66 Billion.

    CalPERS derives its income from investments, from member contributions, and from employer contributions.

    Investment Income has fluctuated in the last 15 years, 19992013, with five years of losses and 10 years of gains. There were investment income gains of $17 billion in 1999, $16 billion in 2000 and $5 billion in 2003. The stock market declines in 2001 led to investment income losses of 12 billion in 2001 and 10 billion in 2002. Thus, the five-year period 1999 to 2003 period had a cumulative income of $16 billion, or about three billion a year on an investment portfolio of over $200 billion.

    The next four years were a period of investment income stability a 24 billion investment income in 2004, 22 billion in 2005, 21 billion in 2006, and 41 billion in 2007. This four-year period had a cumulative investment income of $108 billion, or $27 billion a year.

    With the stock market decline in 2008, during the financial crisis of 20072008, there were large investment income losses. There was a 12 billion dollar investment income loss in 2008 and 55 billion in 2009.

    Statistics On Pension Payouts 2018

    • Total payout = $22 billion
    • Total beneficiaries = 600,000
    • Overall average = $32,224 –
    • 20+ years of service average = $50,333
    • 30+ years of service average = $66,373
    • Police or Firefighters with 20+ years of service average = $78,104:1:1
    • Number of retirees with $100,000+ pension = 26,000 :1

    For comparison:

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    Retirement Benefits Under Defined Benefit Plans

    As of 2020, CalPERS paid monthly allowances to 732,529 retirees, survivors, and beneficiaries. In the fiscal year 2019-20, CalPERS paid $25.8 billion in benefits. The retirement benefits “are calculated using a member’s years of service credit, age at retirement, and final compensation ,” and the retirement formulas “are determined by the member’s employer occupation , safety, industrial, or peace officer/firefighter) and the specific provisions in the contract between CalPERS and the employer”.

    In addition, CalPERS administers the Legislators’ Retirement System, Judges’ Retirement System, and Judges’ Retirement System II.

    Besides CalPERS, California has a number of other public retirement systems, including:

    • At least 22 counties
    • At least 6 cities

    Some people prefer defined contribution plans to CalPERS’ defined benefit plan. For example:

    Among other arguments, CalPERS claims that defined contribution plans cost more to manage than defined benefit plans and fail to provide adequate funds to retirees.

    Calpers: California Public Employees Retirement System Sacramento Ca

    SCERS Answers: What is Reciprocity?

    Summer 2019 Fellow: Sarah Bitter, 22

    More information: https://www.calpers.ca.gov

    Office Description:

    A respected partner, providing a sustainable retirement system and health care program for those who serve California.

    Potential Projects:

    The fellow would report to the Chief Financial Officer , who oversees the organizations budgeting, financial planning, risk management, and contracting with local government employers. Work would include:

    • Learning the complexities of the factors that affect governments pension costs and their ability to plan and pay for them.
    • Helping to prepare materials for the Finance and Administration Committee of the CalPERS Board.
    • Special research projects on issues of high importance.
    • Preparing short memos in response to topical issues related to pensions and health care benefits.

    The CFO is also a member of the University of California Board of Regents. Depending on the fellows interest in higher education policy, additional work could include reviewing Regent agenda materials and preparing memos on key issues facing the Regents.

    Desired Skills, Experience, and Coursework:

    • Ability to ask good questions
    • Excellent analytical and writing skills, with a basic comfort with numbers/spreadsheets
    • Maturity, tact, and reliability

    Note on In-Person Work

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    The Focus List And The Calpers Effect

    Beginning in 1987, CalPERS placed certain companies, with which it had “concerns about stock and financial underperformance and corporate governance practices” on a “Focus List”. The list was also referred to as a “name and shame” list. Beginning in 2010, CalPERS stopped publicly naming companies on the list and instead began dealing with such companies privately. In 2012, CalPERS initiated a program to monetize the Focus List. Each year, after the Board approves staff recommendations for Focus List companies, CalPERS increases investments in those companies. New Focus List companies are added to the portfolio each year, and the portfolio is rebalanced so that holdings remain equally weighted. The purpose of monetizing the Focus List is to replicate the Wilshire studiesusing actual funds to demonstrate and measure the CalPERS Effect. Monetizing the Focus List also allows CalPERS to realize a return on the increased value that typically occurs following an engagement. In 2014, a study by Wilshire Associates showed the companies engaged by CalPERS significantly outperformed the Russell 1000.

    Analysis of performance of companies on the Focus List

    Changes In Your Job Or Life

    If changes in your job or life occur, you may need to make decisions about your SCERS retirement benefits. This section is designed to help you understand how your SCERS membership and benefits are affected by these events. It highlights what you need to do when you need to take action, and the types of changes you can make.

    Job Status Change

    Change from full-time or part-time permanent status to seasonal, intermittent, or temporary status. During the course of your SCERS covered employment, your job status may change to temporary, seasonal, or intermittent. If this happens, your job is no longer classified as a SCERS-covered position and your Member Contributions stop. Your account balance remains on deposit with SCERS and continues to earn interest however, you no longer earn Service Credit. You may not withdraw your contributions unless you terminate all employment for all Participating Employers for at least 60 days.

    If you subsequently return to SCERS-covered employment, you can purchase Service Credit to obtain credit for your temporary, seasonal, or intermittent service.

    Membership Category Change

    If you change Membership Category during the course of your SCERS covered employmentfor example, moving from a Miscellaneous Membership position to a Safety Membership positioncontact SCERS to ensure the date of this change is accurately processed. Your Membership Categories and Benefit Tiers will be listed on your SCERS annual member statement.

    Disability Retirement

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