California Gov. Jerry Brown is urging the board of CalPERS, the nation's largest public retirement system, to impose hikes in employer contributions immediately because of statistics showing costs will rise as retirees live longer. CalPERS staff had recommended the increases be delayed for two years.
In a letter to the board, Brown said increased longevity would cost the system $1.2 billion more per year than today. That's an increase of 32 percent. Unfunded liabilities, the governor wrote, would rise by $9 billion to $54 billion without the additional revenue from employers.
The governor said that since 2010, projections show that a man retiring at age 55 in 2028, would have a life expectancy 2.2 years longer than was projected in 2010. The increase for a woman would be 1.6 years.
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