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CalPERS Investment Committee Maintains 6.8 Percent Discount Rate Following Public Comment by CSDA

By Vanessa Gonzales posted 11-16-2021 08:39 AM

CalPERS building and sign

On November 15, 2021, the Investment Committee of the CalPERS Board of Administration met to consider several topics, including adoption of a new investment policy portfolio and discount rate for the Public Employees’ Retirement Fund (PERF), pursuant to the CalPERS Asset Liability Management policy (ALM). As noted in CSDA’s previous eNews article, CalPERS Hosts Asset Liability Management Webinar (, the discount rate is currently 6.8 percent, on a preliminary basis, pursuant to the CalPERS Funding Risk Mitigation policy (RMP). Public agency budget impacts and PEPRA employee rate increases from the current ALM/RMP cycle are anticipated to take effect in FY 2022-2023.

The CalPERS Investment Committee considered a number of portfolio options and discount rates ranging from 6.5 percent to 7 percent. CSDA Legislative Representative Aaron Avery provided public comment to the committee, urging that the discount rate should not be lowered below 6.8 percent at this time. The candidate policy portfolios and discount rates considered by the committee can be located here:

By a vote of seven to four, the Investment Committee adopted the 6.8 percent discount rate, and the B2 candidate policy portfolio option with five percent allocated leverage.

Among other actions, the Investment Committee adopted Capital Market Assumptions for its Affiliate Funds, which will be followed by a portfolio selection process in early 2022.

The Investment Committee will continue with unfinished business on November 16. Other committees and the Board of Administration are meeting from November 15 – November 17. The Finance and Administration Committee is anticipated to adopt new actuarial assumptions, which are anticipated to result in employer funding cost increases. The Pension and Health Benefits Committee is anticipated to approve certain health plan proposals for the 2023 plan year. Copies of the agenda for each day, and supporting documents, can be found on the CalPERS website:

CalPERS meetings are open to the public in-person and broadcast live by video. You can provide public comments in-person, or via telephone by calling (800) 259-4105. Visit the CalPERS board meeting website linked above for more details.

For additional information, contact CSDA Legislative Representative Aaron Avery at