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Document: League of California Cities request for delay


									                                1400 K Street, Suite 400 • Sacramento, California 95814
                                Phone: 916.658.8200 Fax: 916.658.8240

April 16, 2013

CalPERS Board of Administration
400 Q Street
Sacramento, CA 95814

RE:    Smoothing Method and Amortization Period Changes.
       Meeting Date: April 17, 2013 – Board of Administration

Dear Members of the CalPERS Board of Administration:

The League respectfully requests that you consider a one-month delay in adopting the proposed
smoothing method and amortization period changes, which will dramatically increase employer
rates beginning in 2015-16.

We understand the CalPERS staff recommendations have been made to ensure the sustainability
of the fund over the long-term and to reduce employer rate volatility in poor investment years.
Properly funding public retirement programs is of great concern to the League. However, these
proposed recommendations will have a significant impact on employer rates and a change of this
magnitude should involve greater vetting by stakeholders.

Additionally, we are concerned that these changes may further jeopardize cities working to
achieve financial stability and the unintended consequence may be the risk of making some
agencies insolvent.

Cities have only begun to understand the complexity of these changes and we hope with more
time they can better assess the specific impacts to their individual agencies and provide feedback
to CalPERS.

Thank you for your consideration, we think it is vital to give employers more time to digest,
comprehend, and assess the impacts of these proposed changes. Should you have any questions
about the League’s position please do not hesitate to contact me at 916-658-8254.


Natasha M. Karl
Legislative Representative

cc:    Anne Stausboll, CEO, CalPERS

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