State contributions to CalPERS will fall in the coming year
Posted 12 years 351 days ago ago by
Sacramento Bee May. 17, 2011
The state's annual contribution to CalPERS will fall slightly in the upcoming fiscal year, the pension fund announced today.
CalPERS said the state's contribution in the new fiscal year will hit $3.51 billion. That compares with $3.68 billion in the current year.
The primary reason for the decline: newly negotiated state worker contracts that increase the amount of money taken out of employees' paychecks to pay for retirement.
"We are pleased that circumstances allow us to reduce state pension contributions next year," CalPERS President Rob Feckner said in a prepared statement.
The CalPERS board is expected to vote on the new rates Wednesday.
Public employee retirement costs have been a hot political issue in recent years as the state wrestles with huge deficits. The state's contribution to CalPERS shot up by around $400 million this year, largely because of the pension fund's big investment losses in 2008 and 2009.
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