Indirect Flattery for UCRP from CalPERS

According to a Bloomberg report, CalPERS’ chief actuary is recommending that his fund follow the practice that is currently in place (assuming the Regents continue it) for the UC pension fund.  At present, CalPERS follows a fifteen year smoothing period, extremely long, and doesn’t get to 100% funding in thirty years.  UC has five years smoothing and a plan for 100% over 30 years.

…Alan Milligan, (CalPERS’)… chief actuary, recommends that the biggest U.S. pension stop spreading out losses and gains over 15 years and instead set rates based on how much is needed to reach 100 percent funding within 30 years… Under Milligan’s proposal, the fund would shrink its 15-year rolling period for asset smoothing to five years and amortize gains and losses over a fixed 30-year period rather than the current rolling 30-year period. A fixed period means that all obligations will be fully funded by a specific date…

Full article at

UPDATE: Report indicates that the recommendations are likely to be adopted:
A more detailed account is at

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