Sacramento, CA — California will pay $170 million less for employee pensions next fiscal year.
The California Public Employee Retirement System (CalPERS) Board of Directors voted yesterday to trim the amount of money that the state pays towards employee retirement benefits.
The state is expected to pay $3.51 billion for state employee pensions during the fiscal year that starts July 1st, down from $3.68 billion this year. The new contract requires employees to pay a larger share of their salary towards retirement, approximately eight percent.
Next year state workers will pay around $1.3 billion in overall costs to retirement programs, and it will be matched by the state’s $3.51 billion.