Sunday, January 15, 2017

State of Cal, pension costs up 6%

Brown's proposed budget includes a combined $8.1 billion for payments to the California Public Employees' Retirement System (CalPERS) and the California State Teachers' Retirement System (CalSTRS). Public-sector pensions are financed through a combination of employee contributions, taxpayer dollars and profits earned by pension fund investments.That figure includes a $524-million increase in annual CalPERS payments, the largest single-year boost in four years. Last month, the agency's directors voted to lower their official investment assumptions, thus triggering a higher mandated payment from state and local governments .
This is state only, cities and counties will see about a 10% increase. Growth was about 3%, so we are still losing . Except for the temporary Trump Hump, taxes and pension yields are trending level or down, so deficits and trips to the lender are coming. 

If we don't see a rush to the exits in the stock market then we can ease down, rather than head dive.

No comments: