California's largest pension fund is considering increasing how much government agencies contribute to their workers' pensions. The rate increases proposed in this afternoon's California Public Employees' Retirement System board meeting comes because retirees are expected to live longer, meaning more benefits will be paid out.
Representatives for the state, counties and cities all agree they need to pay more. That means less money for services like police, roads and parks, but delayed or spread out payments cost taxpayers more in the long run.
CalPERS staff are suggesting the board start increasing rates in 2016 and spreading out the costs over 20 years. Most cities and counties agree, but not Gov. Jerry Brown. He says CalPERS should increase rates more quickly to save taxpayers billions.