California to Pay Billions More After Calpers Cuts Assumed Rate
- State will pay $2 billion in higher pension costs by 2024
- Calpers voted to cut target to 7 percent over three years
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California will be forced to pay billions more in pension contributions for government employees after the state retirement system’s decision to lower its assumed rate of return.
California is already paying $5.38 billion to the California Public Employees’ Retirement System this year, and in fiscal year 2018 the state will need to add at least $200 million more. By fiscal year 2024 the annual tab will increase at least $2 billion from current levels. This all comes on top of increases already scheduled under the system, according to Governor Jerry Brown’s finance department.