The state contributions will drop by $71.3 million, although a new public pension law requires $63.3 million of the savings go toward paying down its unfunded liabilities. That leaves the state with a net savings of about $8 million.
Schools will save $31.5 million on retirement benefits for classified employees.
Overall, the state will pay $3.9 billion for pensions in 2013-14. Schools will pay $1.2 billion.
CalPERS actuaries recommended lowering the contribution rates earlier this month, anticipating slower-than-expected salary and payroll growth and higher out-of-pocket contributions from employees under the pension law that took effect Jan. 1.
PHOTO: Piggy bank with clock. The Sacramento Bee file/Big Stock Photo