Yesterday CalPERS shortened the rate smoothing period. This has major implications for Berkeley's budget. Employers' rates will go up by about 50 percent. This will mean even larger cuts to the city services and higher taxes unless there are substantial changes to employee compensation and employee contribution to benefits. How are we going to fix this as well as our decaying infrastructure?
See quote below from the SacBee article and link below.
"CalPERS will shorten the "smoothing" period over which it spreads investment gains and losses from 15 years to five years and amortize them over a fixed 30-year period. Currently, it rolls them over annually, which avoids committing to fully funding the system by a specific date.