(Bloomberg) – California cities may see their annual pension costs rise under a proposal from the state's retirement system, threatening to foist added financial pressure on local governments already struggling to pay for all the benefits promised to public employees.
The California Public Employees' Retirement System is weighing a staff recommendation that would shorten the amortization period for new pension liabilities from 30 years to 20.
That would boost the system's funded ratio, require localities to pay off the debt sooner and allow the pension to recover faster from market downturns, according to a staff report.
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