Fact:Investment earnings pay the majority of the costs of public pensions. For every dollar paid in pensions, 64 cents comes from investments.
Public employees pay for pensions as well. Each month State employees contribute a percentage of their paychecks toward their pension. Through agreements so far, State employees are paying 2-5 percent more out of their paychecks toward pensions for a total of 8-10 percent each month. This has saved California up to $400 million. In addition, more than 175 local governments have decreased pensions for new hires.
CalPERS is working hard to ensure the retirement and health security of our members, provide help to our employers, and manage our investments to meet our long-term liabilities. We hope this information provides education, insight, and clarity.
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