CalPERS trust fund for prefunding public employee retiree health benefits and other post-employment benefits (OPEB) earned a 25.0 percent return on investments in the fiscal year that ended June 30, 2011.
CalPERS created the California Employers’ Retiree Benefit Trust (CERBT) in 2007 to provide California public employers with a low-cost, high-value investment vehicle for prefunding future OPEB costs. OPEB mainly includes retiree health benefits but also can include any employer-paid benefit other than pension, such as dental or vision care.
All California government employers can prefund their OPEB costs by participating in the CERBT. Contracting public agencies can make periodic contributions into the trust fund so that their money can be invested and grow. In the future, participating employers can use investment earnings to pay for retiree health benefits and other post-employment benefits, similar to the CalPERS pension plan in which almost seven out of ten dollars paid in benefits come from investment earnings rather than taxpayer dollars and employer contributions.
Learn more about CERBT.
CalPERS is working hard to ensure the retirement and health security of our members, provide help to our employers, and manage our investments to meet our long-term liabilities. We hope this information provides education, insight, and clarity.
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