Fitch sees budget pressure from Calpers accounting changes
SAN FRANCISCO, April 19
SAN FRANCISCO, April 19 (Reuters) - While accounting changes by California's pension fund for public employees will strain budgets of state agencies and local governments using its services, the revisions will improve the retirement system's funding levels, Fitch Ratings said in a report on Friday.
The California Public Employees' Retirement System this week revised its actuarial policies, aiming to strengthen its long-term sustainability and lower the volatility of contributions from employers whose employees have pension accounts with the fund.
The changes will raise contribution rates in coming years - in some cases by up to 50 percent - but Fitch said employers, who have already been coping with increasing rates, have time to plan for increases. The rating agency also said the revisions are "prudent steps that will improve the system's funded ratio and the predictability of payments for employers over the long term."
- U.S.'s Kerry expresses regret to India over diplomat case |
- Mega Millions winners in Georgia, California to split $648 million |
- China confirms near miss with U.S. ship in South China Sea
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- Fed cuts bond buying in first step away from historic stimulus |