We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

Brown Wants CalPERS Action Now On Rising Pension Costs

  

The CalPERS board will vote later this month on when to start asking the state and local governments to increase their annual contributions to offset the added cost of people living longer. CalPERS staff recommends waiting two years, but Governor Jerry Brown says that’s unacceptable.

“He wants CalPERS to account for the changes immediately so the state can start paying those costs today, rather than push off the costs into the future,” says Jim Evans in the governor’s press office.

Starting now would cost the state an extra $1.2 billion a year.

The governor’s sense of urgency over CalPERS differs from his stance on the teachers’ pension fund’s $70 billion unfunded liability.  In his January budget proposal, Brown called for no action on CalSTRS until 2015 (see pg 6 of the linked file). But last week, Assembly Speaker John Pérez said he’d push for legislation this year – and in response, the Brown administration said it’s “ready to go to work.”

 

Related Stories

  • Budget Update: No Final Deal Yet, But Compromises Emerge

    June 12, 2014

    California Governor Jerry Brown and Democratic legislative leaders have yet to announce a state budget deal – even though many of their compromises have been ratified by a joint Senate-Assembly conference committee

Sign up for ReCap

and never miss the top stories

Delivered to your inbox every Wednesday.

Check out a sample ReCap newsletter.