Page 66 - CPAAC_Fall2015

11/13/2015

Assumption Changes

 No changes to economic assumptions
 Anticipate future mortality improvement
 Earlier retirements for Miscellaneous enhanced

formulas and
 Greater salary increases (late in career)

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De-Risk Investment Portfolio

 Generally means CalPERS would move to more
conservative investments over time (20-30 years)

 Phasing into lower discount rate (e.g. 6.5% or 7%
over 20-30 years)

 Originally CalPERS staff gave Board 3 options

 Controlled glide path
 Blended glide path
 Flexible glide path

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