A CalPERS board committee voted Tuesday to raise the state contribution to the pension system by $600 million in the coming fiscal year starting July 1.
The full board of the $209.1 billion California Public Employees’ Retirement System will vote Wednesday on whether to approve the decision by the system’s Benefits and Program Administration Committee to increase the contribution rate to $3.89 billion from $3.29 billion.
By law, CalPERS can impose the increase without the approval of California lawmakers or the governor.
According to CalPERS board documents, the increase is necessary because of massive investment losses by the Sacramento-based system in the 2008-2009 fiscal year and because state workers are living longer and retiring earlier.
The state of California already faces a $19 billion budget shortfall.