The California Public Employees' Retirement System Pension & Health Benefits Committee approved a plan this week aimed at returning the system to fully funded status within 30 years.
The plan includes a rate-smoothing approach with a 30-year fixed amortization period for gains and losses. The amortization would have a five-year ramp-up of rates at the start and a five-year ramp-down at the end.
"This was one of the most difficult, yet most important decisions we have had to make," said Rob Feckner, president of the CalPERS board. "Moving our plans more swiftly toward full funding will ensure a sustainable pension system for our members, employers and ultimately taxpayers over the long-term."
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