2010/11 Executive Summary

Uses of Revenue

2009/10 Employer-Paid Retirement Adjustment

The CalPERS defined benefit pension plan is funded by employer-paid contributions, employee contributions, and the planís investment earnings. Employer-paid contribution rates are adjusted each year in order to meet defined pension benefit obligations. In Fiscal Year 2009/10 the employer retirement rates for the Miscellaneous Tier 1 increased after declining for previous two years. The 2009/10 employer-paid retirement adjustment is equivalent to an increase of $7.45 million. The state Department of Finance processes state agency retirement adjustments during the fiscal year. The following table provides CalPERS employer-paid retirement contribution rates and adjustments from 2000/01 through 2009/10:

CalPERS Employer-Paid Retirement Rates

Fiscal
Year
Miscellaneous
Tier 1
Peace Officer/
Firefighter
CSU Employer-
Paid Retirement
Adjustments
(General Fund only)
2000/01 0.000% 2.729% ($26,297,000)
2001/02 4.166% 9.638% $84,244,945
2002/03 7.413% 13.925% $68,074,445
2003/04 14.843% 20.325% $155,112,444
2004/05 17.022% 23.841% $44,418,397
2005/06 15.942% 23.563% ($22,490,000)
2006/07 16.997% 24.505% $23,284,000
2007/08 16.633% 25.552% ($8,587,000)
2008/09 16.574% 26.064% ($1,350,000)
2009/10 16.917% 25.848% 7,446,000

California Government Code Section 20814 requires the state to include in the annual budget funding to support the employer-paid retirement contribution rates established by the actuary, and requires the legislature to adopt the rates and authorize the appropriation in the Budget Act.

For reference regarding 2009/10 employer-paid retirement rates, see CSU Human Resources Administration, Technical Letter HR/Benefits 2009-03.