Governor says longer living state workers will drive pension costs up $1.2 billion per year/Sacto BeeFebruary 7th, 2014
“Gov. Jerry Brown, citing statistics showing government employees are living longer and driving up pension costs, has challenged CalPERS to increase employers’ contribution to the fund instead of following a staff recommendation to delay raising rates for two years. Waiting, he says, merely adds to the funds debt.”
“Employers’ contribution” would translate to less services for the taxpayer to cover the increased costs.
A better method is for “users” i.e., state employees, to pay more for their own retirement plans, in form of an IRA or 401K similar to the private sector citizen that must save and/or invest for retirement without a defined benefit guarantee. The system is on its way to becoming unsustainable. Then what?