The CalPERS Board will consider lowering its investment return expectations from the current 7.75 percent to 7.5 percent. If you are a CaPERS member and are thinking about buying “air time.” If the discount rate is changed, it will apply to all applications postmarked on or after March 17, 2011.
Lowering the discount rate to 7.5% will result in an increase in cost for members to purchase service. Costs are expected to increase between 2% and 5%. (The State Worker: How CalPERS’ rate change would affect ‘air time’ purchases, 3/10/2011)
“Air Time” or Additional Retirement Service Credit (ARSC) gives active CalPERS members with five years of earned service credit the opportunity to purchase from one to five years of additional service credit to increase their unmodified retirement allowance. Note that purchased Airtime does not change eligibility for additional benefits (e.g., retirement, disability, death, or any other benefit).