Stanford Institute for Economic Policy Research Pension Reform Richard Costigan Monday, September 18, 2017 Stanford Institute for Economic Policy Research

Board Composition Set by Law No authority to add benefits without Legislative approval Authority to terminate and reduce benefits

Costs are Not Hidden Employer valuations and multi-year projected costs One-on-one consultations with actuaries Investment performance, fees and commitments Meeting agendas, materials online Board meetings webcast live Adhere to professional actuarial and budgeting standards

Savings from PEPRA Nearly 241,000 employees hired since January 1, 2013 Changes retirement to age 62 Pension savings of $29 billion–$38 billion over the next 30 years Employer cost savings of 1.2% to 5.1% for state and school employers* Pensionable compensation caps on salary** * Savings vary for local employers ** $118,775 for Social Security participants; $142,530 for non-Social Security participants