The ratio of employees paying into CalPERS to retirees taking money out fell 25 percent in the last decade, according to a recent report to the fund’s board, and the trend will continue for years to come.
In 2002, there were just over two active employees per retiree, CalPERS data show. A decade later, it was 1.5 workers in the system per retiree.
“These ratios are also expected to continue dropping over the next decades,” the report states, and eventually retirees will outnumber active workers by a ratio of nearly 2 to 1 in some CalPERS retirement plans.
CalPERS has anticipated the trend, the report says, and moves to increase employer and employee contributions and other changes will help mitigate the demographic impact. Still, the changing ratio has an impact on the fund, the report states, “and has to be part of any discussion on funding levels and risks.”
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Call Jon Ortiz, Bee Capitol Bureau, (916) 321-1043.