California's public pension system, the nation's largest, is considering its third rate hike in two years, and the extra payments required from employers might be too onerous in times of strained budgets.
"Concern has been raised that the contribution increases may be too much for employers to bear," wrote David Lamoureux, CalPERS deputy chief actuary, and Alan Milligan, chief actuary, in a report on the proposed increase.
To address those concerns, the new rates, proposed to account for increased longevity assumptions, would be phased in over five years beginning in fiscal 2016-17. They would be amortized over 20 years and then phased out over five years.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
