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On April 20, 2016, CalPERS approved new contribution rates for the State employer. The rates are less than originally projected, but are also up from the previous fiscal year. Changes of the rates for fiscal year 2016-17 are driven primarily by retirees living longer, salary increases, and an increase in the number of employees.
“Our focus is to address the risks in the System, so our employers can plan for the future and have more rate predictability. Today’s action takes the necessary steps to ensure the Fund’s long term sustainability,” said Rob Feckner, President of the CalPERS Board of Administration.
This new rate for the Employer could potentially translate to a rate increase for employees as well, to contribute more to pensions in the future; however, employee contribution rates have not been released.
Click here to read the full article from CalPERS.
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