Staff
Canyon Lake, Calif., has told the California Public Employees’ Retirement System (CalPERS) that it wants to end its relationship with the pension fund.
The city of 11,000 served notice earlier this month ahead of CalPERS’s decision on Wednesday to increase contribution rates by 50% in the next few years.
The pension fund has increased Canyon Lake’s contribution rate to 17.9% of an employee’s salary from 12.8% over the last three years. That rate was expected to increase to nearly 27%.
The city hopes to replace its retirement benefits program with an alternative option that could drop its contribution rate to 8%.
CalPERS is the largest public pension fund in the United States with about US$256 billion in assets.