Sunday, December 18, 2016

All cities at once

Pension Tsunami:

Modesto, other cities brace for higher pension costs
Modesto and other government agencies across California could be paying a lot more for their employees’ pensions, which will squeeze their budgets, as the state pension fund tries to shore up its finances.
The California Public Employees’ Retirement System board could vote Wednesday to lower what CalPERS expects to earn on its investments. That would require the roughly 3,000 public-sector agencies that belong to CalPERS to contribute more to make up the difference. CalPERS is looking at lowering what is called its discount rate – or rate of return on its investments – from 7.5 percent to 7.25 percent or even 7 percent.
A 20% increase in pension costs for everyone, including outside Ca.

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