California Owes $117 Billion In Pensions To Government Workers
As Governor Jerry Brown gets ready to travel to Paris to talk about Global Warming, his California Public Employeesâ€™ Retirement System just announced the California taxpayers will have to pay billions of dollars more than expected for the retirement programs of government workers.
The Los Angeles Times wrote, As soon as Wednesday, the fund’s board could approve a plan that would slowly reduce to 6.5% the current 7.5% it says it expects to earn on its investments.
For taxpayers, that seemingly small change is significant.
Consider the average California Highway Patrol officer who now earns $105,000. Taxpayers currently contribute $47,000 a year for that officer’s pension.
If calculated using an expected investment return of 6.5% instead, according to CalPERS documents, the taxpayer contribution would be $68,000 â€” an increase of more than 40%.