California's public pension system, the nation's largest, is considering its third rate hike in two years, and the extra payments required from employers might be too onerous in times of strained budgets.
"Concern has been raised that the contribution increases may be too much for employers to bear," wrote David Lamoureux, CalPERS deputy chief actuary, and Alan Milligan, chief actuary, in a report on the proposed increase.
To address those concerns, the new rates, proposed to account for increased longevity assumptions, would be phased in over five years beginning in fiscal 2016-17. They would be amortized over 20 years and then phased out over five years.
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