January 26, 2016 The Honorable Betty Yee California State Controller 300 Capitol Mall, Suite 1850 Sacramento, CA 95812 Dear Controller Yee: Submitted in this report
are the results of our actuarial valuation of the liabilities associated with the retiree healthcare benefits provided to statewide employees through the programs sponsored by the State of California as administered by the California Public Employees Retirement System (CalPERS) and the California Department of Human Resource (CalHR). The valuation was based on census information as of June 30, 2015, and measures actuarial liabilities as of June 30, 2015. The report includes expense and financial reporting information applicable to fiscal year-end June 30, 2016, and a projection of annual expense for fiscal year-end June 30, 2017. This report was prepared at the request of the State Controller’s Office (SCO) for the purpose of satisfying the State of California’s financial reporting requirements. The actuarial calculations were prepared for purposes of complying with the requirements of Statements No. 43 and 45 of the Governmental Accounting Standards Board (GASB). The calculations reported herein have been made on a basis consistent with our understanding of these accounting standards. Determinations of the liability associated with the benefits described in this report for purposes other than satisfying the State’s or CalPERS’ financial reporting requirements may produce significantly different results. This report may be provided to parties other than the SCO only in its entirety and only with the permission of the SCO. The valuation was based on information furnished by the SCO, CalPERS and CalHR concerning retiree healthcare benefits, members’ census and financial data. Data was reviewed for reasonableness and internal consistency but was not otherwise audited. We are not responsible for the accuracy or completeness of the information received to produce this valuation. The assumptions and methods used in this valuation are consistent with the CalPERS Other Postemployment Benefits (OPEB) assumption model and with the pension assumptions that will be used in the 2015 actuarial valuations of the CalPERS statewide pension programs. The assumptions and methods were approved by the SCO. To the best of our knowledge, the information contained in this report is accurate and fairly presents the actuarial position of the Retiree Healthcare Benefit Program sponsored by the State of California as of June 30, 2015. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes.
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