Section 20229 Of Article 7. Records And Reports From California Government Code >> Division 5. >> Title 2. >> Part 3. >> Chapter 2. >> Article 7.
20229
. (a) The board, notwithstanding Section 10231.5, shall
provide the Legislature, the Governor, and the Chair of the
California Actuarial Advisory Panel, established pursuant to Section
7507.2 of the Government Code, with an annual report that includes
all of the following, as these items apply to state employee
retirement plans:
(1) (A) A description of the investment return assumption utilized
by the board when determining the contribution rates.
(B) A calculation of the contribution rates utilizing an
investment return assumption 2 percentage points above and 2
percentage points below the investment return assumption utilized by
the board.
(2) (A) A description of the amortization period for any unfunded
liabilities utilized by the board when determining the contribution
rates.
(B) A calculation of the contribution rates based on an
amortization period equal to the estimated average remaining service
periods of employees covered by the contributions.
(3) (A) A description of the discount rate utilized by the board
for reporting liabilities.
(B) A calculation of those liabilities based upon a discount rate
that is 2 percent below the long-term rate of return actually assumed
by the board.
(4) The market value of the assets controlled by the board and an
explanation of how the actuarial value assigned to those assets
differs from the market value of those assets.
(b) The Chair of the California Actuarial Advisory Panel, or his
or her designee, within 30 days of receipt of the report required by
subdivision (a) shall, during a publicly noticed joint hearing of the
Senate Committee on Public Employment and Retirement and the
Assembly Committee on Public Employees, Retirement and Social
Security, do all of the following:
(1) Explain the role played by the investment return assumption
and amortization period in the calculation of the contribution rates.
(2) Describe the consequences for future state budgets should the
investment return assumption not be realized.
(3) Report whether the board's amortization period exceeds the
estimated average remaining service periods of employees covered by
the contributions.
(c) The report required by subdivision (a) shall be submitted in
compliance with Section 9795.