Posted on 05/16/2012 6:04:29 PM PDT by Steelfish
State Employee Pensions to Cost California $3.7 Billion May 16, 2012
SAN FRANCISCO (Reuters) - California will pay about $3.7 billion for state employees' pension in its next fiscal year, more than it now pays but less than the state set aside for retirement-related expenses in the prior fiscal year, the state's pension fund said on Wednesday.
The California Public Employees' Retirement System, best known as Calpers, is receiving $3.5 billion from the state government, down from $3.9 billion in the prior fiscal year.
The anticipated $213 million increase in the state's contribution for the next fiscal year reflects a change in the pension fund's economic assumptions and a decision by its board in March to lower the fund's assumed rate of return to 7.5 percent from 7.75 percent.
As the assumed rate of return drops, state agencies and local government employers using Calpers must pay more to the fund to manage retirement benefits for their employees.
Calpers also said contributions by government employers for non-teaching school employees would drop by $29 million to $1.2 billion for the year beginning on July 1.
Calpers will phase in higher contribution rates over two years, an approach criticized by Governor Jerry Brown in a letter on Wednesday.
Brown said interest costs under that plan would add $145.9 million to the state's expenses over the next 20 years.
"In essence, phasing in the change would be the equivalent of the state taking on a 20-year loan at 7.5 percent interest - not a prudent decision," Brown said.
Calpers Board President Rob Feckner shot back that phasing in higher contributions rates would ease retirement expenses for employers paying into the fund.
(Excerpt) Read more at nytimes.com ...
That’s what prop 29 is all about. It’s going to be used to help pay state employee’s pensions and medical. But......the state won’t admit it.
That’s exactly why they want more tax hikes.
Eff em.
When is a non liberal medium going to get access to get answers publicly from lib politicians? No one can hear us screaming at these idiots!
California is a democrat problem. I could care less. Same goes for NY Democrats squandared the wealth the states produced, and it was alot! They have to learn on their own, you can’t tell a democrat anything.
No problem. When Californicate runs out of real money, Moonbeam can just give them those “chitmans”.
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