Trouble with PERS
Retirees projected to eventually outnumber CalPERS fund contributors
The number of retirees drawing funds from the California Public Employees’ Retirement System (CalPERS) eventually will outnumber employees contributing to the pension fund, a report from the state agency reveals.
In 2002, active employees outnumbered retirees receiving CalPERS benefits 2-to-1, but by 2012, there were 1.5 workers per retiree, and that trend is expected to continue, according to the Sacramento Bee. CalPERS is anticipating a “period of severe stress” as a result of those shifting demographics and is working to increase employer and employee contributions.
The report recommends CalPERS board members “review these results carefully and determine whether or not they feel that changes are necessary to improve the soundness and sustainability of the system.”