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

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

4. 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

5. 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