A CalPERS news release said the new figure is approximately $600 million more than the State contribution of $3.3 billion in the current fiscal year (see CalPERS Sets CA State Pension Payment).
“Increasing employer costs is the last thing we wanted to do during these difficult financial times,” said CalPERS Board President Rob Feckner, in the news release. “Unfortunately, it is necessary to ensure the long-term financial health of the pension fund.”
CalPERS adjusts employer contribution rates every year based on whether the pension fund experiences actuarial gains or losses.
Historically, up to 75 cents of every dollar paid in CalPERS benefits come from investment income, with the remaining 25 cents split between employer and employee contributions, CalPERS said.