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California’s Pension Bills to Rise, Echoing Pain in New York

  • Payments to Calpers may increase as much as 12% in five years
  • Cost of living increases, salary hikes boost liabilities
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California cities and the state could see their annual pension bills rise as much as 12% because high inflation will lead to cost-of-living adjustments for retirees and pay increases for current public employees.

Required contributions may increase 1% to 8% of payroll over the next five years for civil service employees and 2% to 12% for public safety workers, depending on how long high inflation lasts and how quickly the Federal Reserve returns to an inflation target of around 2%, according to the California Public Employees’ Retirement System’s annual review of funding levels and risk.