Sacramento, CA — Many government agencies will soon have to pay more to provide pension benefits to employees.
The CalPERS Board of Directors has tentatively agreed to a rate increase that will total about 50% over the next six years. Over recent years the board had been delaying a rate hike while the state makes its way through the economic downturn.
The new rates would be phased in, and calls for CALPERS to be fully funded in 30 years. The last valuation showed the fund had about 74% of the assets needed to fully cover future pensions. Final approval of the plan is scheduled to be voted on next month.