Thursday, May 13, 2010

CalPERS may present higher bill to state

The Sacramento Bee reports:
CalPERS, the huge public employee pension fund, is set to consider a $600 million hike in what California pays next year to cover state worker pensions.

The fund's actuaries are recommending that its board tell the state to kick in $3.9 billion for the fiscal year that starts July 1. That would be a $600 million increase over this year and $400 million more than Gov. Arnold Schwarzenegger planned in the first draft of his 2010-11 budget proposal.

CalPERS staff figures the fund needs the increase to compensate for investment losses, longer member life expectancies and an edict by the board to narrow the gap between the value of its assets and the cost of its long-term obligations.

Your taxes are their pensions.