CalPERS Looks for 12 Percent Boost In Annual State Contribution, Starting Next Year

CalPERS on Tuesday announced it would be requiring a larger annual contribution from the state to deal with the cost of retirees living longer and workers earning higher salaries.

The higher payment will kick in as soon as the next fiscal year.

From Bloomberg:

The California Public Employees’ Retirement System said the state’s annual pension contribution needs to jump by 12 percent because of payroll growth, salary increases and the longer lives of retirees.

The payment to the pension fund would increase by $487 million to $4.7 billion during the fiscal year beginning in July, according to recommendations approved by the fund’s finance and administration committee Tuesday. School districts would have to pay $1.3 billion, an increase of $111 million.

[…]

The schools’ contribution is also increasing because of the new accounting policies and an 8 percent increase in payrolls.

The full Calpers board will vote on the proposed payment increase Wednesday.

CalPERS is about 77 percent funded and manages over $300 billion in pension assets.