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CalPERS Approves Changes That Increase Cities' Costs



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(Sacramento, CA)
Wednesday, April 17, 2013

Most CalPERS benefit plans are currently between 65 and 80 percent funded. 

Board members say the accounting changes will fully-fund the system within 30 years. But the burden will fall on local governments.

"I think for some cities it could be quite difficult," says Natasha Karl with the League of California Cities.

She says the changes could mean a 30 to 50-percent increase in contributions for cities over 10 years beginning in 2015. 

"What we're asking agencies to do is obviously review the report let us know how these impacts are going to affect their budgets," says Carl. "But the bottom line is that these are being implemented and agencies are going to have to figure out how to absorb the costs."
 
The accounting changes will not affect what employees pay toward their benefits.
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