SACRAMENTO, Calif. (AP) — California government agencies and some workers are going to pay more for pensions because of longer life expectancies.
The board of the California Public Employees’ Retirement System approved new assumptions for its pension system Tuesday effectively increasing contribution rates.
The board agreed to Gov. Jerry Brown’s request to accelerate the state’s payments starting this summer. But rates paid by cities, counties and school districts rates won’t change until 2016. The board rejected an option for public agencies to absorb costs more slowly.
More money for pension contributions means less money for police, roads and parks, but is expected to save taxpayer dollars in the long-term. Brown says a delay in increasing rates would have cost the state $3.7 billion.
Some firefighters and police officers will have to pay more for their pensions under the board’s action.
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