THE STATEMENT “PENSION COSTS WILL CRUSH GOVERNMENT” IS A GROSS EXAGGERATION
CalPERS pension costs represented 1.8 percent of the State’s $87.2 billion general
fund budget in FY 2009-10. In comparison, the cost of debt service amounted to 5.3
percent of the general fund budget in the same year
For every pension dollar paid over the last 20 years, 64 cents comes from
investments, 21 cents from employers, and 15 cents from members.
REPORT IGNORES THAT PENSION REFORM IS ALREADY HAPPENING AND FAILS TO ACCOUNT FOR
COST SAVINGS
State employees are paying 2-5 percent more under new bargained agreements,
saving the general fund $300 million annually.
Significant rollback of pension formulas for all new State hires and pensions are now
being calculated using three-year final average compensation.
FACT SHEET: KEY OBSERVATIONS OF LITTLE HOOVER COMMISSION REPORT
Page 2 of 2
More than 150 cities, counties and districts have reduced pensions for new hires,
increased member contributions, or are in the process of doing one or both.
Some 300 valuation estimates for reducing pensions for local governments have been
processed.
