By Ryan Hagen, San Bernardino Sun
Posted: 02/19/14, 7:25 PM PST |
Leaders of local governments said Wednesday they had been preparing for the increased pension payments they’ll have to pay because of revised assumptions the California Public Employees’ Retirement System board made Tuesday — but hadn’t grown any more comfortable with the sacrifices it will cause.
The CalPERS board effectively increased contribution rates Tuesday, by accepting new projections that show retirees living longer and so requiring more years of pension payments.
The state government will begin paying increased contributions this summer, while cities and other agencies have another two years to prepare.
“I think they understand — they don’t want to understand but they must understand — that to impose this on the cities right now would break our backs,” said San Bernardino Mayor Pat Morris. “To add the new mortality studies and increase rates on top of that would be a complete disaster for hundreds of our cities, so they’ve put them out a couple years hoping to buffer, modestly.”
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