1 City of Laguna Beach
January 27, 2026
CalPERS Pension Update
Kerry Worgan, FSA, FCIA, MAAA
Supervising Pension Actuary
Attachment 1
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CalPERS – Pension Update – Jan 27, 2026
6/30/2023 6/30/2024 6/30/2025* Current 6/30/2023 6/30/2024 6/30/2025* Current Miscellaneous Plan Safety Fire Plan
Classic 85 81 75 77 Classic 23 22 20 20
PEPRA 100 129 136 145 PEPRA 16 19 24 22
Actives 185 210 211 222 Actives 39 41 44 42
54.1% 61.4% 64.5% 65.3% 41.0% 46.3% 54.5% 52.4%
Retirees 259 273 282 Retirees 68 67 69
Safety Police Plan
Classic 19 17 16 17
PEPRA 37 42 48 42
Actives 56 59 64 59
66.1% 71.2% 75.0% 71.2%
Retirees 121 123 125
Safety Other Plan
Classic 2 2 1 1
PEPRA 14 14 14 15
Actives 16 16 15 16
87.5% 87.5% 93.3% 93.8%
Retirees 7 7 9
Safety Totals
Classic 44 41 37 38
PEPRA 67 75 86 79
Actives 111 116 123 117
60.4% 64.7% 69.9% 67.5%
Retirees 196 197 203
Plan Membership Data
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CalPERS – Pension Update – Jan 27, 2026
6/30/2023 6/30/2024 6/30/2025* 6/30/2023 6/30/2024 6/30/2025* Miscellaneous Plan Safety Fire Plan
Accrued Liability 149,648,812 158,865,562 165,484,000 Accrued Liability 85,311,561 89,482,910 93,211,000 Market Value of Assets 113,854,583 123,150,275 137,028,000 Market Value of Assets 59,515,818 64,197,369 71,432,000 Unfunded Liability 35,794,229 35,715,287 28,456,000 Unfunded Liability 25,795,743 25,285,541 21,779,000 Funded Ratio 76.1% 77.5% 82.8% Funded Ratio 69.8% 71.7% 76.6% Safety Police Plan
Accrued Liability 107,528,478 111,334,627 115,973,000
Market Value of Assets 75,512,110 79,920,502 88,927,000 Unfunded Liability 32,016,368 31,414,125 27,046,000
Funded Ratio 70.2% 71.8% 76.7%
Safety Other Plan
Accrued Liability 11,343,712 12,320,056 12,833,000
Market Value of Assets 8,376,839 9,424,530 10,487,000
Unfunded Liability 2,966,873 2,895,526 2,346,000
Funded Ratio 73.8% 76.5% 81.7%
Safety Totals
Accrued Liability 204,183,751 213,137,593 222,017,000
Market Value of Assets 143,404,767 153,542,401 170,846,000 Unfunded Liability 60,778,984 59,595,192 51,171,000
Funded Ratio 70.2% 72.0% 77.0%
Plan Valuation Information
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Pension Cost Drivers
Investments
Inflation
Mortality
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CalPERS – Pension Update – Jan 27, 2026
Investment Return Tracker – Impact on Plan Assets
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CalPERS – Pension Update – Jan 27, 2026
Cost Driver - Inflation
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CalPERS – Pension Update – Jan 27, 2026
Cost Driver – Inflation Impact on Accrued Liabilities
• Retiree Impact at 6.30.24
– Most plans limited to 2% COLA
– COLA “Banks” were mostly used up
– Larger impact for Plans who amended for higher
COLA
• Active Impact at 6.30.24
– Pay increases were much higher than expected
(8.4%/8.8% vs 4.0%)
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CalPERS – Pension Update – Jan 27, 2026
Cost Driver – Real Return
• Assets grow by Investment Return (ie 6.8%)
• Liabilities grow by Inflation (ie 2.3%)
• Progress in Funding requires 4.5% Real Return
Real
Start Date End Date Return Inflation Return
Obama --> 12/31/12 12/31/16 7.7% 1.3% 6.4%
Trump --> 12/31/16 12/31/20 10.2% 1.9% 8.3%
Biden --> 12/31/20 12/31/24 4.9% 4.9% 0.0%
Trump --> 12/31/24 12/31/25 15.5% 2.7% 12.8%
Total --> 6/30/11 1/31/26 7.79% 2.56% 5.23%
CalPERS Return by Administration
Annualized
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CalPERS – Pension Update – Jan 27, 2026
Mortality Tracker
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UAL Paydown Options
1. Make Minimum Payments
2. Make Additional Discretionary Payments
3. Fresh Start
4. Set up Section 115 Trust
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UAL Paydown Options
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UAL Projection and Review
Pension Outlook 2024
- Baseline
- Possible Scenarios
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CalPERS – Pension Update – Jan 27, 2026
Pension Outlook 2024 – Miscellaneous Plan
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CalPERS – Pension Update – Jan 27, 2026
Pension Outlook 2024 – Safety Plans
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UAL Projection and Review
Pension Outlook 2024
- Possible Scenarios
https://www.calpers.ca.gov/employers/actuarial-resources/pensionoutlook-overview/pension-outlook 16 16
Questions?
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