2019 Health Open EnrollmentOpen Enrollment Begins September 9 and Ends October 4

PERSPECTIVEFall 2019 | news.calpers.ca.gov

We’re Looking Ahead to Your Future— and Ours pg. 3

Meet New CalPERS CFO Michael Cohen pg. 7

2 Fall 2019 | 888 CalPERS (or 888-225-7377)

Go Green To stop receiving PERSpective in the

mail, log in to my.calpers.ca.gov and

update your mailing preferences.

PERSpective provides general information about pension, health, and other retirement benefits to our members. Nothing herein should be construed to establish, amend, enlarge, reduce, or otherwise affect any retirement rights, benefits, or privileges. If there is a conflict between applicable law or regulation and the contents of this newsletter, the law or regulation shall prevail.

Brad W. Pacheco,

Deputy Executive Officer

Communications

& Stakeholder Relations

P.O. Box 1802

Sacramento, CA 95812-1802

www.calpers.ca.gov

Office of Public Affairs

Allison Meraz, Managing Editor

Kimi Uyemoto, Designer

Stock Photography: gettyimages.com

Feedback: editor@calpers.ca.gov

CalPERS Board of Administration

Henry Jones, President

Theresa Taylor, Vice President

Margaret Brown

Rob Feckner

Fiona Ma

Lisa Middleton

David Miller

Eraina Ortega

Jason Perez

Mona Pasquil Rogers

Ramón Rubalcava

Betty Yee

Connect With Us

2019 Health Open Enrollment pg. 4

In This Issue3 A Message From CEO Marcie Frost:

Our Commitment to Succeed

Open Enrollment

4 2019 Health Open Enrollment

6 CalPERS Members Report High Satisfaction With Health Plans

6 Summary of Benefits and Coverage Notice

7 New CalPERS CFO Believes in Public Service

8 5 Myths About Your CalPERS Retirement

9 Do You Have a Beneficiary Designation on File?

10 Does Social Security Affect Your CalPERS Retirement Benefit?

11 Join a Retiree Association

12 CalPERS Stimulates Local Economies

13 It’s Never Too Early to Purchase Service Credit

13 Annual Member Statements Available Now

14 Attention Retired Members: It’s Board Election Time!

14 Board Membership Update

15 Save These Dates

www.calpers.ca.gov | Fall 2019 3

Last year, we improved service to our members and employers while reducing costs. This included enhanced online customer service tools like our Open Enrollment app and a new trust fund for employers to pre-fund future pension costs. For the third year in a row, we kept our workforce stable and added no new positions, instituting a new policy that allocates vacant positions based on where they’re needed most. No longer are positions automatically filled.

Our leadership team also has been on the road sharing our commitment to our members, employers, and policymakers. At every stop, we restated our opposition to divestment and voiced strong support for engaging with companies to change behavior that can harm their financial bottom line—and ours. To succeed, we need access to all investment opportunities across all asset classes. Divestment shrinks our investment universe and can greatly hinder our efforts to meet our investment targets.

"To succeed, we need access to all investment opportunities across all asset classes."

Our Commitment to SucceedWe have one mission at CalPERS: to deliver the benefits that you’ve earned through a career in public service. Let me tell you about the goals we’ve set and the path we’re taking to achieve them.

Growing the PortfolioTo hit our investment targets, we must take informed risks and be disciplined in our decision-making. Ben Meng, our new chief investment officer who joined us in January, is focused on driving the Investment Office to meet and beat our target of a 7 percent annual return. Ben wants a CalPERS Investment Office that can compete with Wall Street’s best financial institutions, and he’s structuring the Investment Office to sharpen lines of authority and accountability.

Ben spent his first six months examining our entire portfolio. He’s made clear to the Investment Office he wants everyone working toward total returns. He’s also said repeatedly he wants to increase our investments in private asset classes—but that we will be prudent and patient and invest only when the opportunity is right.

Efficient and Effective OperationsTo maximize our success, we must run CalPERS in the most cost-efficient manner possible.

We told the CalPERS story across the state, fiercely defending defined benefit plans and highlighting their economic impact on local communities large and small.

A Vote of Confidence Our efforts to strengthen our fund have been well received. During his time in office, Governor Brown contributed an additional $6 billion to the fund. In his first budget as California’s chief executive, Governor Newsom and the Legislature appropriated an additional $3 billion, reflecting their commitment to reducing unfunded liabilities and supporting our efforts moving forward. Their vote of confidence drives us to succeed even more.

The Next ChapterThe work we’re doing has taken hold, but the next decade is critical. Pension costs are rising, and we must do all we can to contain them. Benefits are only as secure as your employer’s ability to pay them. Our goals may be ambitious, but our commitment never wavers. Working with employers, legislators, business leaders, and our members we’ll meet the challenges ahead. We’re all partners in this critically important effort to provide you with the retirement security you’ve earned.

A Message From CEO Marcie Frost

4 Fall 2019 | 888 CalPERS (or 888-225-7377)

CalPERS Health Premiums for 2020The CalPERS Board of Administration in June approved the health plan rates for 2020, at an overall average premium increase of 4.65 percent.

Here are the average premium increases by health plan type (excludes association plans):• Members enrolled in CalPERS’ Basic

(non-Medicare) Health Maintenance Organization (HMO) health plans will see a 5.98 percent average premium increase.

• Members enrolled in Basic Preferred Provider Organization (PPO) plans will see an overall average increase of 3.28 percent.

• CalPERS Medicare plan enrollees will see their premiums increase by an average 1.52 percent.

The following chart represents the percentage premium change for each health plan, between 2019 and 2020. Note this reflects only the state, single-party Basic premiums.

Plan Name Premium ChangeAnthem HMO Select +6.04%

Anthem HMO Traditional +7.86%

Blue Shield Access+ +13.91%

Blue Shield Trio New plan, no change

Health Net Salud y Más +7.07%

Health Net SmartCare +18.15%

Kaiser Permanente +3.06%

PERS Choice +2.91%

PERS Select +0.00%

PERSCare +6.45%

Sharp +2.08%

UnitedHealthcare +4.48%

Western Health Advantage +3.56%

We encourage you to visit the Plans & Rates section of our website at www.calpers.ca.gov to see the 2020 premiums for all health plans.

Health care costs are rising due to a number of factors, including increases in hospital admissions, outpatient surgical procedures, and pharmacy costs. CalPERS uses innovation to keep costs low while upholding quality health care.

Notable Health Plan Changes • Blue Shield will introduce a new,

narrow-network health plan called Trio for the following six counties: El Dorado, Los Angeles, Nevada, Placer, Sacramento, and Yolo.

• Anthem will introduce a new Medicare and combination plan for Monterey County.

There are no co-pay, benefit, or co-insurance changes for 2020, with the exception of association plans, which are not controlled by CalPERS.

How to Prepare for Open EnrollmentDiscover your options. Beginning August 26, log in to your my|CalPERS account at my.calpers.ca.gov—or on your mobile device at mobile.my.calpers.ca.gov— to access Open Enrollment information and resources.

There you can view your Health Plan Statement, which lists your 2019 premium and 2020 premium should you remain with the same health plan, plus a wealth of other customized information.

2019 Health Open EnrollmentStarts September 9 and Ends October 4

Use the Search Health Plans tool to explore available health plans based on your eligibility ZIP code, and review side-by-side benefit costs.

What You Can Do During Open EnrollmentDuring Open Enrollment, you may enroll in or change health plans, add eligible dependents, or delete dependents.• Active Employees: Contact your

employer’s personnel specialist or health benefits officer for required forms and documentation to make health plan changes.

• Retirees: You may change your health plan online during Open Enrollment, at my.calpers.ca.gov or on your mobile device at mobile.my.calpers.ca.gov. You may also mail your request to CalPERS’ Health Account Management Division at P.O. Box 942715, Sacramento, CA 94229-2715, or call us toll free at 888 CalPERS (or 888-225-7377).

Additional Information for State Employees and RetireesThe Open Enrollment period for State of California and California State University (CSU) dental and vision plans is September 9 to October 4, 2019.

State of California Employees and RetireesThe California Department of Human Resources (CalHR) administers the dental and vision programs for State of California active employees and retirees. For additional information about state employee dental and vision benefits, go to the CalHR website at www.calhr.ca.gov.

To enroll or make changes to State of California dental and vision plans, use the following methods:

State of California Dental Vision*

Active Employees Contact your human resources department

Contact VSP at stateofcaemployee.vspforme.com or call (800) 877-7195

Retirees Contact us at 888 CalPERS (or 888-225-7377)

Contact VSP at stateofcaretiree.vspforme.com or call (800) 877-7195

*VSP Open Enrollment materials will be mailed directly to you prior to Open Enrollment.

California State University Employees and RetireesThe CSU Office of the Chancellor administers the dental and vision programs for CSU active employees and retirees. For additional information for CSU active employees regarding dental and vision benefits, please contact your campus benefits office. CSU retirees should visit csuretirees.calstate.edu for specific plan information.

To enroll or make changes to your CSU-sponsored dental and vision plans, use the following methods:

CSU Dental Vision

Active Employees Contact your campus benefits office or human resources department

Contact VSP at csuactives.vspforme.com or call (800) 877-7195

Retirees Contact us at 888 CalPERS (or 888-225-7377)

Contact VSP at csuretirees.vspforme.com or call (800) 877-7195

Open Enrollment Goes MobileToday, we live on our mobile phones. You can make important health decisions there, too. Access our mobile tool for customized Open Enrollment resources. Whether by phone or tablet, mobile.my.calpers.ca.gov helps you discover your options.

www.calpers.ca.gov | Fall 2019 5

6 Fall 2019 | 888 CalPERS (or 888-225-7377)

2018 CalPERS Medicare Plan Satisfaction Results

Average Rating

CAHP 9.5

Kaiser 9.1

PERS Choice 9.2

PERS Select 9.0

PERSCare 9.1

PORAC 9.1

UnitedHealthcare 9.1

9.1

2018 CalPERS Basic Plan Satisfaction Results

Average Rating

Anthem Select 7.7

Anthem Traditional 7.9

Blue Shield Access+ 8.3

CAHP 8.8

CCPOA 8.4

Health Net Salud y Más 7.3

Health Net SmartCare 7.7

Kaiser 8.6

PERS Choice 7.8

PERS Select 7.3

PERSCare 8.1

PORAC 8.2

Sharp 9.0

UnitedHealthcare 8.2

Western Health Advantage 8.6

8.3

CalPERS Members Report High Satisfaction With Health PlansAre you curious about how your health plan compares with the other plans when it comes to member experience and satisfaction?

Each year we ask members to tell us about the care and service they received from their health plans. By sharing those survey results, we hope you feel more informed when making Open Enrollment decisions.

For 2018, Basic health plan members rated their plans an average of

8.3 out of 10, with 0 being extremely dissatisfied and 10 being extremely satisfied. Medicare members awarded their plans an average of 9.1.

We use this information and other survey insights to help health plans improve their member ratings. Next year’s survey will begin in January.

Choosing your health plan is an important decision. To assist you with this process, each health plan available through CalPERS has produced a Summary of Benefits and Coverage (SBC). In addition, the federal government has compiled a glossary of common health insurance terms. Together, these documents provide information to help you better understand your health benefit coverage and more easily compare health plan options.

To view the SBCs and glossary online, visit www.calpers.ca.gov or any of the health plan websites listed here. To request a free paper copy of the SBC and glossary, please contact each health plan directly.

Anthem Blue Cross HMO & EPO (855) 839-4524 www.anthem.com/ca/calpers

Blue Shield of California (800) 334-5847 www.blueshieldca.com/calpers

California Association of Highway Patrolmen* (800) 734-2247 www.thecahp.org

California Correctional Peace Officers Association* (800) 257-6213 www.ccpoabtf.org

Health Net of California (888) 926-4921 www.healthnet.com/calpers

Kaiser Permanente (800) 464-4000 www.kp.org/calpers

Peace Officers Research Association of California* (800) 288-6928 www.ibtofporac.org

PERS Select, PERS Choice, and PERSCare (877) 737-7776 www.anthem.com/ca/calpers

Sharp Health Plan (855) 995-5004 www.sharphealthplan.com/calpers

UnitedHealthcare (877) 359-3714 www.uhc.com/calpers

Western Health Advantage (888) 942-7377 www.westernhealth.com/calpers

*To enroll in these health plans, you must belong to the specific employee association and pay applicable dues.

Summary of Benefits and Coverage Notice

www.calpers.ca.gov | Fall 2019 7

Michael Cohen joined CalPERS as chief financial officer in 2018. Prior to that, he served for five years as director of the state Department of Finance and chief financial policy advisor to Governor Jerry Brown.

Where did you go to college? I went to Stanford, but I had no idea what I wanted to do. I knew two things: I wanted to take interesting classes and I wanted to graduate on time. I stumbled on an intro to urban studies class. It traced the history of cities over the last 5,000 to 10,000 years. It was fantastic, and I loved it. From there I pieced together an urban studies major that included economics, sociology, urban planning and design, architecture, environmental engineering, political science, public policy, everything I was interested in.

First professional job?My first job after graduate school was a position at the Legislative Analyst’s Office. I was involved with local government finance, housing policy,

and redevelopment. I became more of a generalist when I moved to the Department of Finance and worked with the Legislature on the state budget.

What made you want to work in government? I always knew how powerful government could be in changing people’s lives. Taking a program that may not be using its money in the best way possible and finding ways to help more people is very rewarding for me. When we can put dollars into the pocket of someone who clearly is struggling to make ends meet, that’s government at its best.

What keeps you in government?People take less money to work for government. That’s always been the case, yet we make up for it with deferred compensation. There’s a lot of critics of public pensions who don’t think we’re going to succeed and don’t want us to succeed. I took this job at CalPERS to prove that public pensions are sustainable, that we can make the system work if we think about it thoughtfully.

Best thing about working for Jerry Brown?He’s innately curious about things, and so good at asking questions that he pushes you to your limits.

Many times, I would brief him on an issue, forgetting that he was the one who signed the bill that created the program in the first place. Or that he has decades of experience on an issue. I would always kick myself for not remembering to look up the history of a program because years later he still remembered all the decisions about that program and why the decisions were made and who was in the room at the time. Oftentimes, the competing forces then are the same competing forces today.

Favorite quote?“Save some biscuits for a rainy day.” —Sutter Brown

Sutter Brown was the governor’s corgi. We were in the middle of the worst of the budget deficits. The governor had these playing cards that had a chart on one side showing the history of the state’s finances, reinforcing the notion that, hey, even though things are good at times, they can get bad very quickly. On the back side they had quotes from Sutter. He was a great dog.

What do you hope to accomplish at CalPERS?It’s a challenging time for pensions. Costs are squeezing local government budgets. I want to provide more tools to employers to plan for future expenses. I’m confident we can succeed and provide the retirement security our members have earned. We have some of the best and brightest leaders at CalPERS, and I’m glad to be part of the team.

New CalPERS CFO Believes in Public Service

Michael Cohen, CalPERS Chief Financial Officer

8 Fall 2019 | 888 CalPERS (or 888-225-7377)

5 Myths About Your CalPERS Retirement

can also affect your eligibility for retiree health and/or dental benefits, as well as the possibility of not having any unused sick leave used in your pension calculation.

Myth 3 If I work for two CalPERS employers, but only one of them reports payroll and service credit to CalPERS, I only have to stop working from the employer reporting to CalPERS when I’m ready to retire.

Fact: To be eligible to retire, you must stop working from all CalPERS employment, including all full-time, part-time, and overtime positions and any elected or appointed positions, even if the position is not being reported to CalPERS. If you work continuously in a position, even if it’s not being reported to CalPERS, you could be unlawfully employed and be required to change your retirement date and repay CalPERS for pension payments you received.

Myth 4 My highest salary earned during my CalPERS-covered employment will be used to calculate my retirement benefits.

Fact: It’s true that we use a 12-month or 36-month average of your highest annual compensation when you have all classic or all PEPRA service. However, if you have a combination of classic and PEPRA service, we use one final compensation amount for the service earned under your classic service and a second final compensation amount under your PEPRA service. We cannot use your PEPRA salary toward your classic service and vice versa.

Myth 5 If I have 100 percent vesting for retiree health benefits, it means that my employer pays 100 percent of my health benefit premiums.

Fact: If you are 100 percent vested for health benefits, this means you receive 100 percent of the employer’s contribution toward your health premiums. You are responsible for paying any remaining health premium costs. Vesting criteria vary by employer, years of service, hiring date, and bargaining unit. Check with your employer for more information.

Getting ready to retire? Get your facts straight!For more information on your retirement benefits, please review your specific member publication, as well as our publication Planning Your Service Retirement (PUB 1), available on our website at www.calpers.ca.gov.

Myth 1My retirement benefit will increase indefinitely with age.

Fact: Pension payments are calculated using a retirement formula based on years of service credit, age at retirement, and final compensation. All retirement formulas have a maximum benefit factor or “age factor,” ranging from age 50 to age 67. Once you reach the maximum age factor, your pension stops increasing unless you are still working and earning more years of service.

Myth 2 There is no time frame to submit my retirement application.

Fact: Once you’re eligible to retire, CalPERS notifies you of your eligibility, but we do not tell you when to retire. If you submit your application more than nine months after you stop working for a CalPERS employer, or retire from a reciprocal system, your retirement date can be no earlier than the first day of the month we receive your application. Not applying within this time frame

www.calpers.ca.gov | Fall 2019 9

my|CalPERS

Is Getting a New Look!

Do You Have a Beneficiary Designation on File?Did you know you can add or update your beneficiary designation anytime through your personal my|CalPERS account?

There are certain life events that can impact and revoke your current designation on file, such as the death of your beneficiary, a marriage or domestic partnership, dissolution or annulment of marriage, termination of a domestic partnership, and the birth or adoption of a child.

Having a designation on file helps ensure that we’ll be able to process benefit payments in a timely and

accurate manner. If you aren’t sure whether you have a beneficiary in place or need to update your designation on file, it’s easy to verify by logging in to your my|CalPERS account. Log in at my.calpers.ca.gov and select the Add or Change Your Beneficiaries link on the home page. You’ll need information about your beneficiaries to complete the process, including Social Security numbers, birth dates, and addresses.

This November we're revealing a more modern, user-friendly my|CalPERS experience for your mobile device. Details are coming soon, so get ready to explore your benefits today.

If you need to set up your account or recover your username or password, visit my.calpers.ca.gov.

10 Fall 2019 | 888 CalPERS (or 888-225-7377)

Impact on Your CalPERS Retirement BenefitIf you’re coordinated with Social Security and make contributions to CalPERS, your contribution rate is lower than your colleague in the full formula plan. For example, state miscellaneous members in Social Security pay 8 percent, depending on bargaining unit. Those not covered by Social Security pay 9 percent.

When your service retirement benefit is calculated, if you were coordinated with Social Security, the 12- or 36-month average compensation starting point will be reduced by $133.33, because you contributed less to CalPERS than the full-formula member. This $133.33 reduction to your final compensation average occurs one time, before your monthly pension is calculated. It is not a monthly deduction.

Impact on Your Social Security BenefitThere’s no reduction to your CalPERS retirement benefit because you’re

The short answer is “sometimes.”

Your CalPERS retirement benefit can affect your Social Security benefit. And your Social Security potentially can affect both the amount of your monthly pension contributions before retirement and the amount of benefits you receive after retirement.

Two Different CategoriesIf you make contributions to both CalPERS and Social Security for the same employment, you’re considered “coordinated” with Social Security. Members not covered by Social Security during CalPERS-covered employment are in what we call a “full formula” plan. And members who have worked in different membership classifications or for multiple employers may fall into both categories, with some coordinated service and some full-formula service.

receiving Social Security, but the reverse is not always true.

If you work for a federal, state, or local government agency where you do not pay Social Security taxes, the pension you receive from that agency could reduce your Social Security benefit.

Two laws that may impact your Social Security benefit are the Windfall Elimination Provision and the Government Pension Offset. Visit the Social Security & Your CalPERS Pension page at www.calpers.ca.gov/socialsecurity to see the relationship between the two benefits. You can also contact the Social Security Administration at (800) 772-1213 or visit www.ssa.gov.

Plan AheadIf you anticipate receiving a benefit from Social Security, it’s a good idea to get an estimate. You’ll find a variety of calculators at www.ssa.gov designed to help you plan different scenarios. Their Retirement Estimator gives you an accurate estimate based on the date you stop working. If you’re affected by the Windfall Elimination Provision (WEP), use the WEP Calculator.

Calculating your Social Security estimate prior to submitting your application for CalPERS retirement will help you determine which CalPERS retirement option will be best for you.

Make sure you understand in advance how the two systems are coordinated. Your CalPERS retirement benefits can work in tandem with Social Security to provide you the income you’ll need during retirement.

Does Social Security Affect Your CalPERS Retirement Benefit?

www.calpers.ca.gov | Fall 2019 11

American Federation of State, County & Municipal Employees (800) 244-8122 www.afscme.org/union/retirees

California Association of Highway Patrolmen (916) 452-6751 www.thecahp.org

California Professional Firefighters (916) 569-0880 www.cpf.org

California School Employees Association — Retiree Unit (866) 487-2732 www.csea.com

California State University Emeritus & Retired Faculty & Staff Association (818) 677-6522 www.csuerfa.org

California State Retirees (888) 808-7197 www.californiastateretirees.org

CAL FIRE Local 2881 – Retirees (916) 609-8700 www.calfirelocal2881.org

Retired Peace Officers Association of California (800) 743-7622 www.rpoac.org

Retired Public Employees Association of California (800) 443-7732 www.rpea.com

Join a Retiree Association

Check Out the Latest

Quick Tip VideosQuick Tips are brief video answers to our members’ most common questions. These videos give you quick access to relevant information that’s easy to find on the go.

Our third installment of Quick Tips covers the following topics:

• Visiting a Regional Office• Long-Term Care• Preparing for Tax Season• Reciprocity• Choosing a Retirement Date

Want More Quick Tip Videos?For more helpful tips and answers to your most common questions, subscribe to the CalPERS Quick Tips series at www.youtube.com/calpers.

If you’re interested in joining a retired public employee group, you can find out more by contacting any of the following associations:

12 Fall 2019 | 888 CalPERS (or 888-225-7377)

At CalPERS, we are proud to have a positive impact on the California economy. In cities large and small, our investments and pension payments to members are stimulating local economies all over the state. We recently released the annual CalPERS for California report and Economic Impacts report detailing how we supported economic stimulus in California during the 2017–18 fiscal year.

The newest CalPERS for California report describes the impact that our investments have on our state. Here are some highlights from the report:• Investments in California for the

2017–18 fiscal year totaled $33.5 billion.

• CalPERS investments in California span the state, from Del Norte County in the north, to Imperial County in the south, and every county in between.

• Over 246,400 jobs have been supported because of CalPERS’ private asset class investments in California.

CalPERS Stimulates Local Economies

To view the full CalPERS for California report, visit www.calpers.ca.gov/californiareport.

Additionally, the Economic Impacts report has recently been published detailing how our pension payments affect California communities.

This report describes how CalPERS pension payments:• Generated $23.5 billion in

economic activity.

• Generated $994 million in sales and property tax revenue.

• Supported 136,968 jobs.

To view the full Economic Impacts report, visit www.calpers.ca.gov/economicimpacts.

In cities large and small, our investments and pension payments to members are stimulating local economies all over the state.

Pension Benefit Retirees and beneficiaries receive pension checks.

Direct Impact Pension checks are spent to purchase local goods and services.

Indirect Impact Local businesses receive revenue, purchase supplies, and support jobs.

Induced Impact Employees spend additional income to further support local businesses and jobs.

www.calpers.ca.gov | Fall 2019 13

Annual Member Statements Available NowYou can view and print your latest and prior-year member statements by logging in to your my|CalPERS account at my.calpers.ca.gov.

Your Annual Member Statement shows an accounting of your retirement-related

work history as reported by your employer. If you have questions about your Annual Member Statement, call us at 888 CalPERS (or 888-225-7377) or send us a message by logging in to my|CalPERS and selecting Message Center.

It’s Never Too Early to Purchase Service CreditYou may be eligible to increase your CalPERS service credit through a service credit purchase. We offer over 25 types of service credit that eligible members may purchase before their retirement date.

Some of the most common service credit types include service prior to membership, which is employment with a CalPERS-covered employer before you became a CalPERS member; leaves of absence for an employer-authorized absence during normal work hours; and active duty military service prior to CalPERS membership.

Additionally, if you were previously a CalPERS member, left your CalPERS-covered employment, and took a refund of your contributions and interest, you may be eligible to redeposit these funds and restore those years of service credit.

Eligibility requirements vary depending on the type of service credit you are interested in purchasing.

It’s easy to apply. Simply submit a completed costing request form to CalPERS, and if you are eligible, we will send you an election package that includes everything you need to know to make an informed decision.

New Payment Options at RetirementAre you planning to purchase service credit on or after January 1, 2020? A new law will require you to pay any remaining balance by your retirement date or elect to have your monthly benefit reduced by the actuarial equivalent of the unpaid balance, instead of making installment payments into retirement. An actuarial equivalent reduction (AER) offers an alternative to you to maintain your service credit purchase and receive an increase in your pension benefit.

If you purchase service credit prior to January 1, 2020, you may pay the balance at retirement through a lump sum, convert to an AER, or continue installment payments into retirement.

Be Retirement ReadyThe earlier in your career that you elect to purchase service credit, the more time you will have to pay the balance in full by retirement. In addition, purchasing service credit early in your career ensures you the lowest cost.

Learn more about all the service credit purchase types, eligibility, and payment methods by visiting our website at www.calpers.ca.gov/servicecredit. You’ll also find resources and links to our service credit publications and forms.

news.calpers.ca.gov

Read more PERSpective stories online:

1 Check Out CalPERS’ Top 5 Publications Online

2 How CalPERS Sets Health Rates

3 On the Road with CalPERS CEO, Marcie Frost

4Learn More in Less Time at a CalPERS Benefits Education Event

5 Brush Up on the Basics of Retirement PlanningAttention Retired Members: It’s Board Election Time!The retired member election is being held August 30 through September 30 to fill one representative seat on the CalPERS Board of Administration. Retired members are eligible to vote online, by phone, or by mail.

A Candidate Forum will be hosted at 1 p.m. on September 10 at the CalPERS Auditorium, 400 P Street, Sacramento. Participating candidates will have an opportunity to discuss important CalPERS-related topics. You may attend in person, watch the forum live online, or view the recording online at a later time.

Visit www.calpers.ca.gov/boardelections to learn more about the election. Candidate statement videos will become available on August 30.

The term of office for the newly elected board member will begin January 16, 2020.

Board Membership Update

We have welcomed Lisa Middleton to the CalPERS Board of Administration.She was appointed by Gov. Gavin Newsom in May 2019 to represent local government elected officials. As a current member of the Palm Springs City Council, Lisa represents Palm Springs on numerous local government boards and committees throughout the region. She retired from California’s State Compensation Insurance Fund after serving 36 years. Lisa replaced Bill Slaton.

14 Fall 2019 | 888 CalPERS (or 888-225-7377)

www.calpers.ca.gov | Fall 2019 15

33%Of CalPERS retirees do not receive Social Security

58.5yrs.Average retirement age of CalPERS members

$2,979Average monthly allowance, all retirees

The percentage of all CalPERS service retirees receiving less than $3,000 a month

Source: FY 2017–18 Facts at a Glance

Help Us Improve Our WebsitesYou can volunteer to take part in our

website testing and share your feedback.

If you are in the Sacramento area and would like to participate, complete the quick

survey at www.surveymonkey.com/r/website-improvements.

Free Benefits Education EventsSave the date! Our next event is:

January 10–11 DoubleTree Rohnert Park

Visit www.calpers.ca.gov/cbee for more 2020 dates, registration details,

and resources.

Holidays

November 11Veterans Day

November 28–29 Thanksgiving Holiday

December 25Christmas Holiday

January 1New Year’s Holiday

Our offices will be closed on these holidays, but we’re still available online when you need information on our programs and services. Visit my.calpers.ca.gov to view your account information and conduct your CalPERS business at any time.

CalPERS Board Meetings

September 16–18

November 18–20

December 16–18

No board meeting is scheduled in October.

Live coverage of all open sessions of the board and its committees is streamed online from the CalPERS auditorium.

Visit www.calpers.ca.gov on board meeting days to watch and listen.

You can also access videos of past meetings at www.youtube.com/calpers.

Webinars

Sign up for our free educational webinars. Visit www.calpers.ca.gov to view webinar details and to register.

Service Credit PurchaseSeptember 11, 11:00 a.m.

Converting Your State Second Tier ServiceOctober 16, 11:00 a.m.

Family Status ChangesNovember 13, 11:00 a.m.

Understanding Your Retirement Benefit OptionsDecember 11, 11:00 a.m.

CalPERS

By the Numbers

63%

Save These Dates

In Case You Missed It

California Public Employees’ Retirement System Office of Public Affairs P.O. Box 1802 Sacramento, CA 95812-1802

PRSRT STDU.S. POSTAGE

PAIDSACRAMENTO, CAPERMIT NO. 1644

PERSPECTIVE has gone digital!

news.calpers.ca.govDon't wait for our printed newsletter. Get the latest news for CalPERS members online now.