C

Executive Office
P.O. Box 942701
Sacramento, CA 94229-2701
Telecommunications Device for the Deaf - (916) 795-3240
(916) 795-3332, FAX (916) 795-7878

November 16, 2010

AGENDA ITEM 5a

TO: MEMBERS OF THE BENEFITS AND PROGRAM ADMINISTRATION

COMMITTEE

I. SUBJECT: Member Branch Performance Measures

II. PROGRAM: Member and Benefit Services Branch

III. RECOMMENDATION: Information Only

IV. ANALYSIS:

Attached are the FY 2010-2011 First Quarter Member and Benefit Services
Branch (MBSB) Performance Management dashboard reports. The
summary status report from the most recent quarter is provided as
Attachment A1 and the summary status report from FY 2009-2010 is
provided for reference as Attachment A2. The dashboard reports for the
most recent quarter are provided as Attachment B. Some metrics are not on
target due in part to furloughs, increased inventory, and our most
experienced staff being redirected to my|CalPERS activities.

Customer Service and Education Division (CSED) reports five dashboards

for performance measures related to customer service and telephone
contact, Attachments B-1 through B-5. Attachments B-2, Call Answer Rate,
and B-3, Average Wait time have been changed from yellow to red. Call
volume increased by 25,000 over the previous quarter. Volume was
particularly high before and during Open Enrollment primarily due to the
re-enrollment of 23-26 year old dependents mandated by Health Care
Reform legislation. The increase was also due to questions surrounding
pension reform and changes to the Actuarial Option Factors. Call volume,
staff vacancies, and the three day per month furloughs contributed to a
reduction in the call answer rate.

Member Services Division (MBSD) reports six dashboards for performance

measures related to service credit cost requests, elections to purchase
service credit, and retirement estimates, Attachments B-6 through B-11.

California Public Employees' Retirement System

www.calpers.ca.gov
Members of the Benefits and Program Administration Committee
November 16, 2010
Page 2 of 3

Two dashboards related to service credit cost requests, Attachments B-6

and B-7, are red. The volume of service credit cost requests has increased
from a quarterly average of 4,892 in 2008-09 to 5,742 in 2009-10. The past
two quarters have had the highest quarterly request volumes in more than
four years: in the last quarter of 2009-10 MBSD received a total of 7,369
requests while in the first quarter of 2010-11 MBSD received a total of
7,396 requests.

The increase in service credit cost requests is due to three factors:

members submitting requests prior to the September 15, 2010 cost
increase in certain types of service credit, challenges related to furloughs,
and a projected increase in the number of baby boomer retirements.

In the past 12 months, some of the service credit costing staff have been
redirected to an additional workload resulting from three major court
decisions. Those staff completed service credit cost requests and
adjustments for 1,500 members. This additional workload is not reflected in
Attachments B-6 and B-7.

Even with three furlough days per month, redirection of experienced staff to
my|CalPERS activities, and the additional workload described above (see
Attachment B-6a), MBSD staff has maintained a constant level of
productivity. These measures include reprioritizing workload, redirecting
staff to address the most critical workload, increasing voluntary staff
overtime, and other measures.

MBSD anticipates a significant decrease in service credit cost requests

beginning in January 2011, due primarily to the increased cost of certain
types of service credit. The decline in requests will allow us to begin
addressing the accumulated backlog.

The service credit elections dashboards, Attachments B-8 and B-9 are on
target; B-9 has improved to green due to the elimination of the backlog that
had accumulated over the past few quarters. Attachment B-10 indicates the
percentage of retirement estimate requests completed within 5 days of
receipt. This dashboard is currently yellow but trending toward the target of
90 percent. Attachment B-11, percent of retirement estimate requests
completed within 30 days, improved to 100 percent.

Benefit Services Division (BNSD) reports seven dashboards for

performance measures related to service and disability retirement,
adjustments, pre and post retirement death benefits, and refunds,
Attachments B-12 through B-18. During the first quarter, the disability
retirement determinations and service retirement allowance adjustment
dashboards, Attachments B-13 and B-17, improved to green.
We continue to timely adjudicate newer disability retirement cases as more
complete application packages are received due to our education efforts
Members of the Benefits and Program Administration Committee
November 16, 2010
Page 3 of 3

through employer workshops and enhanced training for staff; 90 percent of

workable cases are now within the six month timeframe.

Unprecedented increases in service retirement applications and associated

payments negatively impacted our service levels for adjustments in prior
quarters but concentrated mitigation efforts have improved performance.
We will continue to monitor the adjustment workload for sustained
performance.

V. STRATEGIC PLAN:

This project supports the CalPERS Strategic Plan. The performance

measurements described in the attachments are directly aligned to the
CalPERS strategic goals.

VI. RESULTS/COSTS:

These Performance Management dashboard reports were implemented in

MBSB effective the fourth quarter of fiscal year 2006-07 to replace
MBSB Effectiveness Measures previously reported to the Board. There are no
new costs associated with the implementation and administration of the new
Performance Management process.

_____________________
DONNA RAMEL LUM
Assistant Executive Officer
Member and Benefit Services Branch

Attachments