Posted: 4/16/2015
CalPERS released a statement on 4/14/15 that announced state funding (from the employer) towards pensions increased by approximately 6 percent. This rate is up from the 2014-15 fiscal year, but less than originally projected. The state employee’s contributions are rising due to the demographic of public employees living longer, implementation of new smoothing policies, and because payroll of state employees covered under CalPERS has increased by 7 percent over last year. The state’s contribution towards pensions is estimated to increase by $487 million from $4.2 billion to $4.7 billion in the next fiscal year. Currently, the state pension plan is approximately 72 percent funded. Full state valuation rates for the next five years will be available this summer. Click here to read more details about state actuarial valuation and employer contribution rates, provided by CalPERS Finance & Administration Committee.
According to Richard Costigan, Chair of the Finance and Administration Committee of CalPERS, “Pension plans require stable funding, and the new rates incorporate the Board’s actions over the last several years that will reduce rate volatility in the long term.”
As always, ACSS is monitoring and keeping a close watch on this issue. We are ensuring that the state does not pass additional pension contributions onto employees, like what has been proposed for healthcare in the 2015-15 State Budget. We will continue to keep you informed as this issue unfolds.
Click here to read the CalPERS news release.