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Administration November 26, 2014
CalPERS Reports Cost-Cutting Actions
The California Public Employees' Retirement System (CalPERS) reported about efforts that have saved the pension fund more than $162 million in the last three fiscal years.
Reported by PLANSPONSOR staff
Between fiscal year 2011-12 and 2013-14, CalPERS achieved savings in its investment, health care, and information technology programs through the following initiatives:
Investment Office – $116.4 million in savings
- Increasing in-house investment portfolio management;
- Favorable terms on fees with external investment partners; and
- Transfer of work from consultants to state staff.
Health Program – $33.3 million in savings
- Additional health plan options that increased competition; and
- Hip and knee reference pricing programs
Information Technology – $12.1 million in savings
Transfer of consultant work and knowledge to state staff
The savings are in addition to the $106 million CalPERS projected last week that it will save by removing ineligible participants from its health care program.
“Fiscal responsibility is one of our top priorities,” says Cheryl Eason, chief financial officer for CalPERS. “We’ve been able to minimize program costs to the benefit of our members, employers, and the fund.”
CalPERS announced in April that, for fiscal year 2011 to 2012 and fiscal year 2012 to 2013, it reduced its investment-related costs by about $80 million.