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School Employer Advisory CommitteeFebruary 2, 20221
School Employer Advisory CommitteeHousekeeping (1 of 2)Webinar is being recordedAttendee mics are mutedMeeting materials available on www.calpers.ca.govEmail: CalPERS SEAC@calpers.ca.gov2
School Employer Advisory CommitteeHousekeeping (2 of 2)Options to submit a question for panelist(s): Q&A feature Raise hand featureo Use raise hand feature to indicate you have a question. The host will call on you tounmute your mic and ask your question.o While unmuted, your profile picture and name will display to the host and panelistso Only your name will display to the other attendeeso Select Lower Hand to lower, if needed. Note: This will not mute yourself if you’reunmuted3
School Employer Advisory CommitteeAgenda (1 of 2)Legislation Update – Andrea PetersDisallowed Compensation – Brad HansonMandatory Furloughs – Mianca FongSB 411 – Christina RollinsBreak4
School Employer Advisory CommitteeAgenda (2 of 2)Membership Eligibility – Veronica CoriaElection Eligibility – Alex VazquezmyCalPERS System Enhancements – Ryan Bieker & Meghan KorteContribution Rate Outlook – Paul TschidaCalPERS Regional Offices Reopening – Jamie PopeQuestions and Answers – Renee Ostrander, Brad Hanson, andChristina Rollins5
Legislative UpdateAndrea PetersLegislative Affairs Division6
Disallowed CompensationBrad HansonEmployer Account Management Division7
School Employer Advisory CommitteeLegislation Senate Bill (SB) 278Government (Gov.) Code 20164.5Disallowed compensation for benefit adjustmentsEstablishes procedures for determinations made on or afterJanuary 1, 2017, for members with disallowed compensationEmployers make the members ‘whole’ by covering theoverpayment and a portion of the annuity of the reductionEmployers may submit their labor policies and/or agreement toCalPERS for guidance and review within 90 days8
School Employer Advisory CommitteeGov. Code 20164.5 (1 of 5)Disallowed CompensationDisallowed compensation items: Non-compliant special compensation items included in the laboragreement or MOU Member was unknowingly placed on roll after retirement date with noncompliant special compensation Discovered after member was placed on roll9
School Employer Advisory CommitteeGov. Code 20164.5 (2 of 5)Disallowed CompensationItems not considered disallowed compensation: Payroll corrections related to errors Lump sum reporting Compensation item was reportable but cannot be used in the finalcompensation calculation Special compensation reported solely in final compensation period Pay rate denials10
School Employer Advisory CommitteeGov. Code 20164.5 (3 of 5)ExampleMember’s Allowance: 5,500 per month Allowance includes 500 disallowed compensation Received disallowed compensation for three years11
School Employer Advisory CommitteeGov. Code 20164.5 (4 of 5)Employer Penalty ExamplePast Retirement Payments 500* x 36 payments 18,000 overpayment Paid by employer to CalPERS on behalf of the member*Includes cost of living adjustments received by the member12
School Employer Advisory CommitteeGov. Code 20164.5 (5 of 5)Employer Penalty ExampleDownward adjustment to retirement allowance 500 x 20% 100Paid to the member in lump sum by the employer 100 x Actuarial Factor (AF) 100 (AF)o Actuarial factor based on lifetime expectancyo Paid in a lump sumPaid to CalPERS 10% of 100 (AF)13
School Employer Advisory CommitteeResourcesWebsite – www.calpers.ca.gov Public Employees' Retirement Law (PERL) Public Agency & Schools Reference Guide Circular LettersMOU Review@calpers.ca.govEAMD CCRU Outreach@calpers.ca.govEmployer Contact Center: (888) CalPERS or (888-225-7377)14
School Employer Advisory CommitteeCompensation Questions?15
Mandatory FurloughsMianca FongEmployer Account Management Division16
School Employer Advisory CommitteeMandatory FurloughsAssembly Bill 1651 Gov. Code 20969.2Circular Letter 200-40-20New System Enhancement17
School Employer Advisory CommitteeMandatory FurloughsNew System Enhancement18
School Employer Advisory CommitteeFurlough Questions?19
SB 411Heather PorterEmployer Account Management Division20
Break21
Membership EligibilityVeronica CoriaEmployer Account Management Division22
School Employer Advisory CommitteeMonitored Membership (1 of 2)Positions to be monitored for 1,000 hours Full time temporary positions less than six months Part-time employees working less than 20 hours a week Irregular time base employees Per-diem employees completing 125 days of work in a fiscal year Temporary, indeterminate, limited team, irregular positions, on-call,seasonal, substitutes, intermittent, extra help23
School Employer Advisory CommitteeMonitored Membership (2 of 2)Qualifying hours All part-time employment working for districts under the same CountyOffice of EducationExample – Member works concurrently for ABC school district and XYZ school districto Both districts are under Los Angeles County Schoolso The overlap would be combined for membership qualification Regular and overtime hours only24
School Employer Advisory CommitteeQualified for MembershipCompleted 1,000 hours Within Fiscal Year (FY), July 1 through June 30o 1,000-hour count restarts if hours are not reached in a FY Membership date should be next day or first day of the next pay period25
School Employer Advisory CommitteeMembership ResourcesCalPERS Contact Center 888 CalPERS or (888-225-7377)Membership Reporting@calpers.ca.govPublic Agency & Schools Refence Guide26
School Employer Advisory CommitteeMembership Questions?27
Election EligibilityAlexander Vazquez & Cassandra ElsalamyEmployer Account Management Division28
Retirement System Election(ES 0372)29
School Employer Advisory CommitteeRetirement System Election (1 of 2)What is a Retirement System Election (ES0372)30
School Employer Advisory CommitteeRetirement System Election (2 of 2)Eligibility Requirements31
School Employer Advisory CommitteeTypes of Reportable Positions32
Scenarios33
School Employer Advisory CommitteeElection Eligibility Scenarios (1 of 7)34
School Employer Advisory CommitteeElection Eligibility Scenarios (2 of 7)35
School Employer Advisory CommitteeElection Eligibility Scenarios (3 of 7)36
School Employer Advisory CommitteeElection Eligibility Scenarios (4 of 7)37
School Employer Advisory CommitteeElection Eligibility Scenarios (5 of 7)38
School Employer Advisory CommitteeElection Eligibility Scenarios (6 of 7)39
School Employer Advisory CommitteeElection Eligibility Scenarios (7 of 7)40
School Employer Advisory CommitteeElection ResourcesCalPERS Contact Center 888 CalPERS or lic Agency & Schools Reference Guide41
School Employer Advisory CommitteeEligibility Questions?42
myCalPERS System EnhancementsRyan Bieker & Meghan KorteEmployer Account Management Division43
School Employer Advisory CommitteeOut-of-Class Reporting EnhancementsGov. Code 20480Maintain out-of-class record detailsNew validations Employer relationships Payrollo No rate plan foundo Falls outside of membership or active appointmento More than one employero Missing supporting documents44
School Employer Advisory CommitteeEmployer Log In Enhancements (March)Password reset every 90 daysStatic text added to various screens Challenge questions Contact your system access administratorNew required fields Email Cell phone recommended45
School Employer Advisory CommitteeAppointment History Transactions (March)Upcoming Enhancements Appointment Update Detailso Clarify screen languageo Back button addition New field values46
School Employer Advisory CommitteeAppointment History Transactions (April)Upcoming enhancements Allow users to view superseded eventso Includes corrections and deletions47
School Employer Advisory CommitteeRemindersUndeliverable Address Cognos ReportPrimary contact for arrears administrator, financials, general,human resources, payroll, Social Security AdministratorRetirement appointment reconciliation compliance48
School Employer Advisory CommitteeSystem Questions?49
Contribution Rate OutlookPaul TschidaActuarial Office50
School Employer Advisory CommitteeOverviewActuarial valuation to set 2022-23 contribution rates Sets employer rate and PEPRA employee rate Rates anticipated to be finalized in April 2022Key drivers of rates:51
School Employer Advisory CommitteeNew AssumptionsComes from two studies conducted every four years Asset Liability Management (ALM) processo Reviews and adjusts asset allocation based on prevailing capital market assumptionsand the board’s risk-return preferenceo Asset allocation selected by the board (Nov) results in a 6.8% discount rate Experience studyo Review of CalPERS demographic experience through June 30, 2019 (mortality,salary increases, retirement rates, etc.); assumptions revised as appropriateo New demographic assumptions estimated to have little effect on Schools Pool rateo Impact of COVID-19 not directly measured but will indirectly affect rates over time52
School Employer Advisory CommitteeEmployee Contribution RatesPEPRA members By law, PEPRA members contribute half of the total normal cost of theirbenefits (rounded to nearest 0.25% of pay) Normal cost is sensitive to actuarial assumptions, especially discount rate Member rate is estimated to increase to 8.0% effective July 1, 2022(from 7.0%) Final rate should be known in AprilClassic members Rate is set by statute and will remain 7.0%53
School Employer Advisory CommitteeEmployer Contribution Rate (1 of 2)Revised estimate for 2022-23 25.4% of pay154
School Employer Advisory CommitteeEmployer Contribution Rate (2 of 2)Revised rate projection55
School Employer Advisory CommitteeContribution Questions?56
CalPERS Regional Office ReopeningJamie PopeCustomer Education & Outreach Division57
School Employer Advisory CommitteeRegional Office Services (1 of 4)Currently offering virtual services Benefit counseling appointments (video and phone) Member retirement classes (online instructor-led) Online educational resources via CalPERS YouTube Channel and withinmyCalPERS Emergency retirements (via video for urgent situations)58
School Employer Advisory CommitteeRegional Office Services (2 of 4)Regional offices to open once CalPERS returns to office Retirement counseling by appointment only (virtual and in-person)o Limited services for those without an appointment Virtual services still available Abide by state, county, and local health and safety guidelines Field classes per employer or association request Emergency retirements (recommended to be conducted virtually)59
School Employer Advisory CommitteeRegional Office Services (3 of 4)Member resources and appointment preparation Member education resourceso Member Education Resourceso Online classes (computer based and instructor led)o CalPERS YouTube Channel myCalPERS onlineo Run Retirement Estimates (Reminder: Regional Offices do not run or createestimates on demand)o Service Credit Purchaseso Apply for Retirement60
School Employer Advisory CommitteeRegional Office Services (4 of 4)Mass communication after we open Via CalPERS Newsletter, myCalPERS headline banner, social media,CalPERS website, myMessages for employers Allow flexibility for changes Soft opening to ensure success and preparedness Important to make an appointment for benefit counseling61
School Employer Advisory CommitteeRegional Office Questions?62
Open Questions and AnswersRenee Ostrander, Brad Hanson, and Christina RollinsEmployer Account Management Division63
Thank you for joining us!CalPERS School Employer Advisory Committee64
Experience study. o Review of CalPERS demographic experience through June 30, 2019 (mortality, salary increases, retirement rates, etc.); assumptions revised as appropriate o New demographic assumptions estimated to have little effect on School Pool rate o Impact of COVID-19 not directl
