The State Worker

Chronicling civil-service life for California state workers

June 19, 2013
CalPERS approves lower pension rates for state, schools

130620-Piggy-BANK.JPGCalPERS' board has signed off on a plan to lower pension payments for California's state government and school districts by a combined $102.8 million for the coming fiscal year.

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

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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