Feb. 19 (Bloomberg) — The California Public Employees' Retirement System, the largest U.S. public pension, will begin phasing in higher contribution rates to account for the increased costs of retirees living longer.
The board of the $282.5 billion fund voted yesterday to boost the state's annual allocation to $5 billion over three years, from $3.8 billion now. Local government increases were postponed for two years.
The vote represents a partial victory for Governor Jerry Brown, a 75-year-old Democrat, who urged the board to fully reflect the increased costs of increased longevity in three years. Cash-strapped local governments won a delay to help build a cushion before the higher payments kick in.
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