The Bee's Dale Kasler has reports in this story that CalPERS Board of Administration will consider lowering its investment return expectations from the current 7.75 percent to 7.5 percent. As Dale notes, the change could have significant implications for what the state pays into the fund if the fund's Board of Administration adopts the new rate at its meeting next week.
But there's another impact -- this one for some individual CalPERS members -- in the staff report to the fund's Benefits and Program Administration Committee, which meets on Tuesday:
For service credit purchases under the "present value" method, the use of the new discount rate will apply to all applications postmarked on or after March 17, 2011.
So what does that mean? Higher "air time" costs for members. Here's what the staff analysis concludes:
Note that lowering the discount rate to 7.5% will result in an increase in cost for members to purchase service. The cost for service credit purchases under the present value method is expected to increase between 2% and 5%.
Click here to read the full CalPERS staff report.