Fact:Retirement benefits are paid from the CalPERS pension fund, which is a trust fund that can be used only for payment of member benefits and related expenses. Historically, almost 75 cents of every dollar paid in pensions come from investment returns, not tax dollars.
Members contribute a fixed amount into the fund. The rest comes from employers’ contributions and investment income. CalPERS uses this money to pay for benefits and its administrative expenses.
Investment returns have brought in income to CalPERS of over $200 billion in 20 years; employers’ income has been about $56 billion, and members, through payroll deductions, have paid in $34 billion.
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