10/17/2021

As CalPERS rates climb, how high can they go?

A new report shows a third of local governments in CalPERS will have police and firefighter employer rates next fiscal year that are at least 50 percent of pay, a level that a former CalPERS chief actuary believed a decade ago would be “unsustainable.”

At the high end, the number of local governments with rates of 70 percent of pay or more (all of them cities except for one special district) will increase from 15 this fiscal year to 24 in the new fiscal year beginning July 1.

The average “safety” or police and firefighter employer rate will increase 4.75 percent next fiscal year, going from 44.23 percent of pay now to 48.98 percent next July, said the annual CalPERS Funding Levels and Risks Report given to the board last week.

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