March 15, 2012 |
Bowing to the realities of a volatile stock market and a weak investment climate, the nation's largest public pension fund lowered its benchmark assumed rate of return. The board of the California Public Employees' Retirement System voted 9 to 1 to reduce its expected, average annual return on its investments to 7.5% from 7.75%. That was a quarter of a percentage point higher than what had been recommended by CalPERS' chief actuary, Alan Milligan. In addition to lowering the assumed rate of return, which had been previously approved by a CalPERS committee, the board also agreed to reduce its assumed average annual inflation rate to 2.75% from 3%. The changes, which kick in for the state government and school districts July 1, will cost the state general fund $167 million in higher pension costs in the next budget year.
CALIFORNIA | LOCAL
September 18, 1985
As a Social Security recipient, I would like to commend Lamm for his proposal to apply a means test to this retirement program. Yes, every recipient of a government pension should indeed have a means test. Let him start with retired governors and state legislators, then proceed to retired presidents and senators. What about the retired military officers who live a life of ease, collecting their generous pensions while working for the very contractors for whom they arranged lucrative projects?
March 13, 2012 |
The financially beleaguered state government and school districts probably will be paying more for their employees' pensions, starting next summer. A key committee of the board of the California Public Employees' Retirement System on Tuesday voted 6 to 2 to cut its benchmark assumed rate of return on its investments to 7.5% from a two-decade-old target of 7.75%. The change, if approved Wednesday by a majority of the full 13-member board, would cost the state general fund an additional $167 million, boosting the total bill for the 2012-13 fiscal year to approximately $3.7 billion.
August 22, 2008
Strange to say, one problem plaguing teachers is the size of their pensions. Not the usual, hefty pensions that threaten to sink school districts such as Los Angeles Unified, but the ones that shortchange teachers who enter the field later in life. Under little-known provisions of the Social Security Act, people who make mid-career switches to teaching or certain other public-sector work can lose a significant portion of their federal retirement benefits. The rules don't affect people who paid into Social Security for a full 30 years, but they do cut into the benefits of those who make the switch earlier.
December 8, 1999 |
Caving in to a derisive public outcry, a 49-year-old Mexican Cabinet minister said Tuesday that he will give his $4,500 monthly early retirement pension to charity for as long as he keeps working in government. Finance Minister Jose Angel Gurria, one of the most respected leaders in the government, had become a lightning rod for protests since it was revealed last month that he has been receiving a government pension since 1994, when he was 44.
May 26, 2003
Re "Sweet Pension Deals Now Haunt Counties," May 21: It's no surprise to me that California is in a fiscal vise, and these outrageous pensions are part of the reason. The local officials who voted themselves these sweet deals are really a bunch of thieves. All this legislation has to be repealed. Art Garin Los Angeles