Rift Between CalPERS And Governor
Sacramento, CA — The Board of Directors for the state’s largest pension fund will meet tomorrow and talk about ways to reduce liabilities.
As reported previously, CalPERS staff recommended using new assumptions, that retirees are living longer, in setting contribution rates for the 2016-17 fiscal year. The Governor is asking CalPERS to instead start implementing the changes immediately, and use a phased in schedule over the next three years.
According to the Associated Press, in a written statement, CalPERS responded to the Governor that it must consider the ability of government agencies and employees to pay more for pensions, before hiking rates. The board’s president and vice president declined to comment further.
The Governor’s Office had cited that CalPERS is an estimated $45 billion in the red, and the deficit will grow by $9 billion over the next two years because of the longer life of retirees.