Posts Tagged: hike
OPINION: Latinos have long-been committed to protecting public lands and rivers. Yet, California Latinos are almost twice as likely to live somewhere that is “nature deprived” than white communities, meaning there are far fewer parks, streams, beaches, and other natural places nearby.
CalPERS is considering small increases in employer and employee rates over decades to reduce the risk of big investment losses, a policy that also would lower an earnings forecast critics say is too optimistic. The proposal is a response to the “maturing” of a CalPERS system that soon will have more retirees than active workers. From two active workers for each retiree in 2002, the ratio fell to 1.45 to one by 2012 and is expected to be 0.8 to 0.6 to one in the next decades.
The push back from schools hit with a huge CalSTRS rate increase, expected to be an additional $3.7 billion a year when fully phased in, is not that it’s unaffordable and will hurt students or unfairly lets the state and teachers off the hook. Instead, a coalition of school districts, including the giant Los Angeles Unified School District, wants a separate budget item for the CalSTRS rate increase within Proposition 98.
Gov. Brown has made a long-delayed proposal to get CalSTRS to full funding over the next three decades, giving the biggest rate hike to schools and smaller increases to the state and teachers. The nation’s largest teacher pension fund, which received $5.8 billion from the three sources last fiscal year, needs an additional contribution of about $4.2 billion a year to project full funding in 30 years.
Getting CalSTRS back to full funding, if rates are steadily increased over the next half dozen years, would take an annual increase reaching more than $5 billion a year by 2020 — about what the state general fund currently spends on UC and CSU combined. (Photo: CalSTRS lobby, Paul Housberg)
Most California public pension funds have the power to raise annual employer rates when they need more money. The California State Teachers Retirement System, a century old this year, is an outlier that needs legislation to raise rates. As lawmakers at the Capitol struggled with budget cuts during a deep economic recession, pleas for a CalSTRS rate increase were not acknowledged with a legislative hearing until last year.
A CalPERS committee yesterday approved raising employer rates roughly 50 percent over the next seven years, replacing actuarial methods that kept rates low during the recession with a new goal of full funding in 30 years.
The actuarial method approved by the benefits committee on a 5-to-2 vote, with some labor unions urging a
The CalPERS board last week tentatively approved an employer rate hike of roughly 50 percent over the next half dozen years, replacing a policy that kept rates low during the recession with a plan to reach full funding in 30 years.
While giving unanimous “first reading” approval to the proposal by Chief Actuary Alan
Support for Capitol Weekly is Provided by: