The California Public Employees Retirement System (CalPERS) is lowering pension payments for the state and school districts by about $40 million in the coming budget year at the same time the state's general fund will see its required contribution for school employees to the system drop by $31.5 million for classified employees.
The changes reflect new contribution rates approved by the CalPERS Board of Administration.
"Lower pension costs are good news for the State's general fund," reported CalPERS Board President Rob Feckner in a news release. According to CalPERS, the school plan will require $1.2 billion in contributions for 2013-14. The reduced pension costs flow from a "drop in payroll, lower than expected salary increases, and additional member contributions required by AB 340."