Agreement and Election to Prefund Other Post Employment Benefits Through Calpers - California

Agreement and Election to Prefund Other Post Employment Benefits Through Calpers is a legal document that was released by the California Public Employees' Retirement System - a government authority operating within California.

FAQ

Q: What is CalPERS?
A: CalPERS stands for California Public Employees' Retirement System. It is a public pension fund that provides retirement and health benefits to public employees in California.

Q: What are Other Post Employment Benefits (OPEB)?
A: Other Post Employment Benefits (OPEB) refer to benefits other than pensions that public employees receive after retiring, such as healthcare.

Q: What is the Agreement and Election to Prefund Other Post Employment Benefits through CalPERS?
A: The Agreement and Election to Prefund Other Post Employment Benefits through CalPERS is a document that allows public agencies in California to pre-fund their OPEB obligations through the CalPERS system.

Q: Why would a public agency want to prefund its OPEB obligations?
A: Prefunding OPEB obligations allows a public agency to set aside money over time to cover the future costs of retiree health benefits. It helps to reduce the financial burden on the agency and ensure stability in providing these benefits.

Q: What are the benefits of prefunding OPEB through CalPERS?
A: Prefunding OPEB through CalPERS provides access to the expertise and investment management capabilities of the pension fund. It also allows the agency to pool its risk with other participants, potentially reducing costs.

Q: Are public agencies required to prefund their OPEB obligations?
A: No, public agencies are not required to prefund their OPEB obligations. However, prefunding is encouraged as a responsible fiscal practice.

Q: What happens if a public agency does not prefund its OPEB obligations?
A: If a public agency does not prefund its OPEB obligations, it may need to use current operating funds to pay for retiree health benefits in the future, which can strain its budget.

Q: Can a public agency terminate its agreement to prefund OPEB through CalPERS?
A: Yes, a public agency can terminate its agreement to prefund OPEB through CalPERS with proper notice to the pension fund.

Q: Can a public agency withdraw the funds it has contributed to prefund OPEB through CalPERS?
A: No, the funds contributed by a public agency to prefund OPEB through CalPERS are not refundable.