CalPERS Lowers Rate Hike by $200 Million

The California Public Employees' Retirement System had earlier told the state it needed $3.9 billion in contributions during this fiscal year as the pension fund recovers from big investment losses.

That would have represented a $600 million increase. The announcement intensified the debate about the rising cost of public employee pensions.

But since then, several key state employee unions have agreed to concession contracts that increased the amount state workers will contribute to their pensions.

As a result, CalPERS will only need about $3.7 billion from state taxpayers, a $400 million increase. The CalPERS board approved the revised formula in mid-December.

Further details are available at Calpensions.com, a blog created by Ed Mendel, a reporter who covered the Capitol in Sacramento for nearly three decades, focusing on CalPERS and the California State Teachers Retirement System, which have two of the world’s largest investment portfolios.

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