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Myths vs. Facts - Pensions

Myth: The State of California and taxpayers pay the total cost of public pensions.

Investment earnings pay the majority of the costs of public pensions. For every dollar paid in pensions, 64 cents comes from investments.

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Myth: Public pension benefits are excessive and a drain on the public.
The average CalPERS pension is about $25,000 per year. Half of CalPERS retirees receive $18,000 per year or less in benefits. Unlike the private secto...
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Myth: CalPERS is going to run out of money because of baby boomers retiring.
CalPERS began putting away money for the baby boomers the day they first came to work for government. CalPERS plans are prefunded and contributions ar...
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Myth: Pensions are among the highest costs of State government.

Forty-one percent of the State general fund budget is earmarked for public education, 12 percent for higher education, and 10 percent for correctio...
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Myth: Rate smoothing is funny accounting that requires future generations to pay pensions of those working today.

CalPERS follows accounting standards set by the Governmental Accounting Standards Board. We have received awards over the last 15 years for meeting...
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Myths vs. Facts - Health Care

Myth: CalPERS pays 100 percent of retiree health care costs.
The amount an employer pays for retiree health benefits varies by employer. CalPERS negotiates for health insurance benefits for retirees and employee...
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Myth: Spending health care dollars on prevention and wellness programs does little to affect the overall cost of health care in our nation, our state and our communities.

Cost for prevention and wellness programs are dwarfed by the cost that doing nothing contributes to overall health care costs. For example, a study...
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Myths vs. Facts - Investments

Myth: CalPERS cannot come back from billions in losses.
At the market’s lowest point in 2008, CalPERS assets had dropped by $100 billion. Today CalPERS has regained $70 billion and in September, its m...
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Myths vs. Facts - Accountability & Ethics

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