{"id":58434,"date":"2016-11-23T02:18:24","date_gmt":"2016-11-23T01:18:24","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/calpers-cuts-costs-and-saves-pension-fund-922-5-million-over-a-five-year-span\/"},"modified":"2016-11-23T02:18:24","modified_gmt":"2016-11-23T01:18:24","slug":"calpers-cuts-costs-and-saves-pension-fund-922-5-million-over-a-five-year-span","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/calpers-cuts-costs-and-saves-pension-fund-922-5-million-over-a-five-year-span\/","title":{"rendered":"CalPERS Cuts Costs and Saves Pension Fund $922.5 Million Over a Five-Year Span"},"content":{"rendered":"<p>The California Public Employees&#8217; Retirement System (CalPERS) Board of Administration (Board) released the Annual Cost Efficiency and Effectiveness Report (PDF), detailing several initiatives that resulted in cost savings for the Pension Fund of $922.5 million over the past five years.<\/p>\n<p><em>&#8220;We will continue to look at means to control and reduce costs while focusing on innovative measures that streamline our operations,&#8221;<\/em> said Richard Costigan, chair of the Finance and Administration Committee. <em>&#8220;This savings is a reflection of CalPERS&#8217; efforts to cut costs and leverage the savings that improve our health and retirement programs for our members and employer partners.&#8221;<\/em><\/p>\n<p>Between Fiscal Years 2011-16, CalPERS achieved savings in its investment, health care, and information technology programs through the following initiatives:<br \/>\n&#8211; Investment Office &#8211; $325 million in savings<\/p>\n<ul>\n<li> Reduced reliance on external consultants<\/li>\n<li> Internalized functions previously outsourced at a higher cost<\/li>\n<li> Re-negotiated existing investment contracts with external managers for more favorable cost terms and improved economics<\/li>\n<\/ul>\n<p>&#8211; Health Care Program &#8211; $565.4 million in savings<\/p>\n<ul>\n<li> Developed innovative methods to achieve pharmaceutical cost containment<\/li>\n<li> Achieved savings through the removal of ineligible dependents from individual employee health plans<\/li>\n<li> Reduced administrative fees with the implementation of new flex funded health plans<\/li>\n<li> Reduced costs for hip and knee replacement by standardizing pricing among providers<\/li>\n<li> Required members to pay the cost difference between brand name and equivalent generic drugs<\/li>\n<li> Consolidated multiple Medicare payers to a single Medicare payer<\/li>\n<\/ul>\n<p>&#8211; Information Technology &#8211; $32.1 million in savings<\/p>\n<ul>\n<li> Transferred consultant work and knowledge to state staff<\/li>\n<\/ul>\n<p>In Fiscal Year 2015-16, CalPERS costs savings and reductions resulted in another $289.3 million from the previous fiscal year of $633.2 million to a new grand total of $922.5 million.<\/p>\n<p><em>&#8220;The savings and cost avoidance of nearly $290 million in a one-year period is an accomplishment that speaks to our operational effectiveness,&#8221;<\/em> said Cheryl Eason, CalPERS chief financial officer. <em>&#8220;Our priorities are to balance our operational requirements, while demonstrating fiscal responsibility.&#8221;<\/em><\/p>\n<p>Other key operational improvements included:<\/p>\n<ul>\n<li> The development of the Funding Risk Mitigation Policy<\/li>\n<li> A new option for members to receive their health statement online<\/li>\n<li> Reduced water consumption that recaptured 1.7 million gallons of water<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The California Public Employees&#8217; Retirement System (CalPERS) Board of Administration (Board) released the Annual Cost Efficiency and Effectiveness Report (PDF), detailing several initiatives that resulted in cost savings for the Pension Fund of $922.5 million over the past five years.<\/p>\n","protected":false},"author":20,"featured_media":58432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1655,1651,1437,2094,2007],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58434"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=58434"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/58432"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=58434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=58434"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=58434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}