Fiscal Year 2013-2015 Special Budget Meeting

Circular Letter No.: 200-019-13 April 26, 2013 Page 3 For example, suppose your agency has an estimated 2014-15 contribution rate of 14.5 percent and an AVR of 4. Referring to the table above, under the AVR of 4 column, you can expect to see a 1.1 percent increase in your current employer contribution rate for 2015-16 resulting in a 15.6 percent rate, a 2.2 percent increase for 2016-17 for a 16.7 percent rate, and so forth until the rate reaches an expected maximum of 20.0 percent in Fiscal Year 2019-20. Be aware these are only estimates since we do not know the final return on investments beyond June 30, 2012. Your employer rate will also differ due to your own plans demographic experience, or if you are in a pool, due to the pool's demographic experience. Overall, these contribution increases will result in your plan being better funded in time and will ultimately result in lower contribution rates. If you have any questions, please call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377). ALAN MILLIGAN Chief Actuary