Market Basis reflects 2015 pension debt using CalPERS’ Hypothetical Termination Liability Discount Rate of 3.250%. (CalPERS also estimates a Hypothetical Termination Liability using a discount rate of 2.000%, but we do not include these values.) The use of this discount rate here is intended, as most financial economists agree, to more closely represent market realities and system liabilities. Total Pension Debt reflects aggregate liabilities for the California Public Employees' Retirement System (CalPERS), the California State Teachers' Retirement System (CalSTRS), independent pension systems, the University of California Retirement System (UCRS), plus Pension Obligation Bond (POB) balances, minus the aggregate Market Value of Assets (MVA). Pension Debt Per Household equals Total Unfunded Liabilities divided by the number of households in the state. Unfunded liabilities for each system are estimated as:

• CalPERS (including the Public Employee Retirement Fund, Judges’ Retirement Funds I and II, and the Legislators’ Retirement Fund): $444.2 billion or $34,415 per household.
• Independent county, city and special district systems: $236.7 billion, or $18,335 per household.
• California State Teachers' Retirement System (CalSTRS): $246.3 billion, or $19,083 per household.
• University of California Retirement System (UCRS): $57.0 billion or $3,376 per household.
• Pension Obligation Bonds issued: $8.1 billion, or $631 per household.

Actuarial Basis reflects 2015 pension debt using discount rates reported by most systems, typically about 7.5%. Total Pension Debt reflects the aggregate liabilities for the California Public Employees' Retirement System (CalPERS), the California State Teachers' Retirement System (CalSTRS), independent pension systems, the University of California Retirement System (UCRS), plus Pension Obligation Bond (POB) balances, minus the aggregate Market Value of Assets (MVA). Pension Debt Per Household equals Total Unfunded Liabilities divided by the number of households in the state. Unfunded liabilities for each system are estimated as:

• CalPERS public agencies (the Public Employee Retirement Fund, Judges’ Retirement Funds I and II, and the Legislators’ Retirement Fund): $123.9 billion or $9,599 per household.
• Independent county, city and special district systems: $42.7 billion, or $3,305 per household.
• California State Teachers' Retirement System (CalSTRS) agencies: $62.1 billion, or $4,811 per household.
• The University of California Retirement System (UCRS): $10.8 billion or $836 per household.
• Pension Obligation Bonds issued: $8.1 billion, or $631 per household.