CalPERS Board Gives Tentative OK To 50% Employer Rate Increase
Last week, the CalPERS board tentatively approved an employer rate hike of about 50%, Capitol Weekly reports.
The board has asked for more information on the plan -- which was proposed by CalPERS Chief Actuary Alan Milligan -- before it decides whether to grant final approval next month.
CalPERS sustained a $100 billion loss in fundingÂ during the recession.
Under the current rate policy, the funding level in 30 years is expected to reach:
- 86% for most local government workers;
- 82% for non-teaching school employees; and
- 79% for most state workers.
Details of the Rate Hike
The new rate hike would help the pension fund reach full funding levels in 30 years.
According to Milligan's proposal, the rate hike would be phased in over five years.The phase-in would begin in fiscal year 2014-2015 for state and school employers and in FY 2015-2016 for local governments (Mendel, Capitol Weekly, 3/25). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.