The California Public Employees' Retirement System (CalPERS) board of administration has adopted a set of pension beliefs that articulate its views on public pension design, funding and administration.
CalPERS Board Members, executives and staff will use the 11 pension beliefs in their communications with members, employers, policy makers, other pension systems, the media and other stakeholders.
The fund believes that these principles will be beneficial for all pension systems and policy leaders to consider during the ongoing state and national policy debates about pensions and retirement security.
Rob Feckner, president of the CalPERS board, said: "These pension beliefs reflect our commitment to our core mission and will help advance and steer today's dialogue on public pensions."
"The pension beliefs support CalPERS role as an advocate for the value of defined benefit plans, which have professionally managed funds with a long-term horizon, and incorporate pooled investments and pooled risks."
CalPERS claims that pension benefits are deferred compensation and the responsibility for appropriate funding should be shared between employers and employees.
Another of the beliefs states that a retirement system must meet the needs of members and employers to be successful.
Inadequate financial preparation for retirement is a growing national concern, according to CalPERS, and they claim that all employees should have effective means to pursue retirement security.
The CalPERS board and staff began development of the pension beliefs in October 2013 and worked with key stakeholders to gather feedback for further refinement.
Discussions with external partners, board members and executive staff focused on six key areas of a pension system to guide the development of the pension beliefs.
The areas focused on were administration, education, funding, governance, plan design and risk management.
"Retirement security for all America's workers is one of the more noteworthy beliefs and I'm proud that CalPERS will play an advocacy role in this effort," said Priya Mathur, chair of the pension and health benefits committee.
