The future of California's public pension system, the nation's largest, most likely will include higher employer contribution rates dependent on how much return its investments generate, according to an annual CalPERS report.

The State & Schools Actuarial Valuation report, for the first time, included examples of how different investment returns would affect employer contributions. The authors added those projections so employers would have a clearer idea of future costs.

The CalPERS report said employer contribution rates as a percentage of payroll would rise from about 21 percent this fiscal year to nearly 27 percent in 2019-20 if investment returns rise at an annual rate of 7.5 percent. That rate of return is the benchmark used by bond rating agencies and others to calculate the future assets and liabilities of pension funds.

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