Homework week 5 11 30 2012 Case 8 1 a When was CalPERS established The California Public Employees Retirement System CalPERS was established in 1931 and began its operations in 1932 b What types of employers contribute to CalPERS State and local government employers contribute to CalPERS along with state agencies schools California universities counties cities special districts auxiliary agencies fire police districts and many other government entities c How many individuals are served by CalPERS CalPERS serves retirement and health benefits to 1 654 067 million public employees retirees and their families and more than 3 000 employers d How many and what types of funds are administered by CalPERS 17 funds are administered by CalPERS Nine of these funds are pension trust funds These funds include four contribution plans and five benefit plans There are also three agency funds which include a contingency reserve fund for health care payments and remittances an old age surviving fund and a special deposits fund for earmarked funds Four proprietary funds are also administered by CalPERS These four funds include two health care funds one long term care fund and one deferred compensation fund In addition to those funds there is also one OPEB fund Other Post Employment Benefits CalPERS is primarily responsible for administering retirement and health benefits CalPERS also administers long term care benefits a post employment benefit fund for retiree health and supplemental retirement savings plans CalPERS comprises a total of 17 funds including the Public Employees Retirement Fund PERF Legislators Retirement Fund LRF Judges Retirement Fund JRF Judges Retirement Fund II JRF II State Peace Officers and Firefighters Defined Contribution Plan Fund SPOFF Public Agency Deferred Compensation Plan IRC 457 Supplemental Contributions Program Fund SCPF California Employers Retirement Benefit Trust Fund CERBTF Public Employees Health Care Fund HCF Public Employees Contingency Reserve Fund CRF Public Employees Long Term Care Fund LTCF and Replacement Benefit Fund RBF e For the most recent reporting period what is the value of total fiduciary assets The value of total fiduciary assets as of June 30 2012 was 241 8 billion f For the most recent reporting period what was the change in pension fund net assets Collectively the net assets held in trust for all fiduciary funds were a total of 241 8 billion to 237 0 at June 30 2012 a decrease of 4 8 billion 1 8 percent from 245 8 billion at June 30 2011 Additions to net assets held in trust for benefits include employer and member contributions as well as investment income or loss For the 2011 12 fiscal year total additions were 12 4 billion a decrease of 44 4 billion from the 2010 11 fiscal year Deductions consist primarily of retirement death and survivor benefits refunds administrative expenses participant withdrawals and OPEB reimbursements For the 2011 12 fiscal year total deductions were 16 8 billion an increase of 1 1 billion 7 0 percent from the 2010 11 fiscal year g What are the funded ratios from the schedule of funding progress and what do the funded ratios tell you As of June 30 2011 PERF 82 6 LRF 115 6 JRF 1 6 JRF II 92 0 and CERBTF 11 7 The funded status on a market value of assets basis is reported since it represents the true measure of the plan s ability to pay benefits at a given point in time The lower the ratio the higher the liabilities and therefore the funds with ratio below 100 are underfunded h What is the reporting relationship between CalPERS and the State of California CalPERS is a fiduciary unit to the State of California Since it is a fiduciary unit it is mixed in on California s fiduciary net assets statement pension funds According to the independent auditor s report the financial statements referred to above present fairly in all material respects the financial position of the fiduciary funds and proprietary funds of the California Public Employees Retirement System as of June 30 2011 and the changes in financial position of the fiduciary funds and the changes in financial position and cash flows of the proprietary funds for the year then ended in conformity with the accounting principles generally accepted in US http www calpers ca gov http www calpers ca gov eip docs about board cal agenda agendas financeadmin 201211 item7a 01 pdf