Myths vs. Facts
Myth: CalPERS is going to run out of money because of baby boomers retiring.
March 15, 2010
Fact:
CalPERS began putting away money for the baby boomers the day they first came to work for government. CalPERS plans are prefunded and contributions are received in every year that members accrue their benefits. The retirement of baby boomers has already been reflected in the rates using actuarial assumptions. The money needed to pay benefits for retirees is expected to be there when workers retire. CalPERS is expected to be able to keep up with baby boomers retirements and the expected increase in benefit payments.
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