The California Public Employees’ Retirement System (CalPERS) analysed the cost of the proposed 2013 Public Employee Pension Reform Act (PEPRA).
If enacted, CalPERS estimates the proposed legislation will save between $42 billion and $55 billion over 30 years for CalPERS administered pension plans.
“Our actuarial staff worked quickly and thoroughly to produce the best cost analysis we could in the time allotted,” said Alan Milligan, CalPERS chief actuary.
“The analysis contains near and long term savings estimates intended to assist our legislators before they vote on the proposal today.”
The analysis only reflects the savings for employers participating in CalPERS and only for retirement benefits provided by CalPERS.
The firm also stressed that the analysis was not all-encompassing, and assumptions such as age and salary of new hires had to be made.
“Also, the analysis does not take into consideration any of the expenses for implementation of this legislation, and those costs would somewhat offset the estimated savings," CalPERS concluded.
