Category: Announcements

Sacramento, Calif. – CalPERS today reported a preliminary 6.7 percent net return on investments for the 12-month period that ended June 30, 2019. CalPERS assets at the end of the fiscal year stood at more than $370 billion.

Drivers of the return included the Fixed Income program, which generated a 9.6 percent net return, followed by Private Equity and Public Equity net returns of 7.7 percent and 6.1 percent returns respectively.

Based on these preliminary fiscal year returns, the funded status of the overall CalPERS fund is an estimated 70 percent, down less than a percentage point from fiscal year 2017-18. This estimate is based on a 7 percent discount rate.

“This was a very volatile year for financial markets, but I’m pleased with how we focused on the performance of the total fund,” said Yu (Ben) Meng, CalPERS Chief Investment Officer.

“We saw good returns in several key areas. Our long duration fixed income portfolio contributed positively as interest rates fell. And we are pleased with the outcome of some allocation changes made during the year, which we estimate contributed 70 basis points to fund performance.

“While we did not achieve our 7 percent actuarial return target this fiscal year, I can’t stress strongly enough that we are long-term investors. We make decisions based on an investment horizon that stretches across years and even decades. That’s our focus, and we will continue to analyze all aspects of our portfolio to see how we can generate higher risk-adjusted total returns for our members.”

This year’s return brings total fund performance to 5.8 percent for the five-year time period, 9.1 percent for the 10-year time period, and 5.8 percent for the 20 -year time period. Over the past 30 years, the CalPERS fund has returned an average of 8.1 percent annually.

Today’s announcement includes asset class performance as follows:

Net Rate of Return

Total Fund 6.7%

Public Equity 6.1%

Private Equity 7.7%

Fixed Income 9.6%

Real Assets 3.7%

Liquidity 2.6%

Returns for real estate and private equity reflect market values through March 31, 2019.

CalPERS’ 2018-19 final fiscal year investment performance will be calculated based on audited figures and will be reflected in contribution levels for the State of California and school districts in Fiscal Year 2020-21, and for contracting cities, counties, and special districts in Fiscal Year 2021-22.

The ending value of the CalPERS fund is based on several factors and not investment performance alone. Contributions made to CalPERS from employers and employees, monthly payments made to retirees, and the performance of its investments, among other factors, all influence the ending total value of the Fund.

About CalPERS

For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.9 million members in the CalPERS retirement system and the Public Employee Retirement Fund market value currently stands at approximately $373billion making us the largest defined-benefit public pension in the U.S. Additionally, we administer benefits for more than 1.4 million members and their families in our health program. For more information, visit www.calpers.ca.gov

By: WES VENTEICHER

Health insurance premiums for CalPERS members are going up next year, but rates will be lower than insurers initially requested, according to 2020 rates published Tuesday.

Premiums will go up 4.65 percent on average next year. Last month, insurers submitted requests for increases to CalPERS that would have raised rates by an average of 7.2 percent.

At last month’s meeting, CalPERS staffers said some insurers likely would reduce premiums for competitive reasons after seeing one another’s published rates. Board members strongly encouraged staff to do all they could to tamp down rate hikes.

The California Public Employees’ Retirement System provides health insurance to about 1.5 million people, including current and retired state workers and their dependent family members. The fund also provides health insurance to workers and families of some other public agencies and schools around the state.

CalPERS’ most popular PPO, called PERS Choice, will go up 2.9 percent. Last month, it was projected to increase by 5 percent. The plan had about 221,000 members in January.

Premiums for CalPERS’ PPO-style Medicare Advantage plans are decreasing an average 2.5 percent, while the fund’s HMO-style Medicare Advantage plans are increasing by an average of about 6 percent.

The plan with the biggest increase last month, a Health Net Smart Care HMO, reduced its rate hike to about 18 percent, from last month’s 24 percent. Premiums for the plan, which had about 26,000 members in January, are going up partly due to the unexpected addition of about 10,000 new Bay Area policyholders after Blue Shield left the area.

A health care subcommittee of the CalPERS Board of Administration approved the final rates Tuesday. The full board is scheduled on Wednesday to vote on them.

“We negotiate aggressively because we know that many of our members must pay the entire cost of any premium increase entirely out of their own pocket,” said Rob Feckner, the committee’s chairman. “While these rates reflect the current state of the health care market, we expect the health plans that do business with us to also take strong actions to keep costs down. We’ll continue to hold them accountable and to be more transparent as we work on behalf of our 1.5 million members in our program.”

CalPERS staff told the board in May that the premium increases generally stem from the costs of medical care exceeding premium revenue. Radiology tests, walk-in surgeries and office visits all increased among policyholders in 2018, the last full year of data, according to a CalPERS analysis. Prices also increased for prescription drugs, lab tests and emergency room visits.

Policyholders will be able to switch plans during an open enrollment period from Sept. 9 through Oct. 4.

What is a Resolution?

The resolution is one way Union members help determine Local 2620’s policies and actions.  A resolution is quite simply a call to action that is voted on by the members at the convention.  Any member can submit a proposed resolution for consideration to the resolution committee.  If it is approved, it will be presented at the convention for a vote of the members.

If you would like to submit a proposed resolution or have questions feel free to submit them to the membership committee at resolutions@afscmelocal2620.org. All resolutions must be submitted before August 7, 2019.

The Resolution Committee will address all proposals received thru August 7, 2019, and present during AFSCME Local 2620 Biennial Convention that will take place on September 7, 2019, at the Hyatt Regency in Burlingame CA.

• Contract Negotiations
• Local Pay for High Cost Counties
• Increase in Employer medical contributions as a raise is anticipated in 2023
• COLA increase
• Transparency for recruitment and retention
• Parity for DSH Clinicians with CDCR Clinicians
• SDI and paid family medical leave–similar to SEIU
• Why can’t LPAs contribute to Disability? (in case of pregnancy, it can be used?)
• Change the contract so that only members get the benefits?
• Please mention all the good accomplishments at the 2620 Web site
• Corcoran SATF scanner update

Please forward any questions to be addressed during the call to: webmaster@afscmelocal2620.org

CALL INFORMATION

AFSCME Local 2620 May 2019 General Membership Meeting 
Wed, May 29, 2019 7:00 PM – 10:00 PM PDT

Please dial in using your phone. 
United States: +1 (646) 749-3112

Access Code: 330-338-725

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Thank you