SALINAS, Calif.- More bad news for those of you looking to retire in California, Stanford researchers say the state's pension problem keeps getting worse.
The study released today looked into the California Public Employees' Retirement System and found the pension part of the state budget is likely to triple.
The study said Governor Brown's pension reform plan is a step, but only a step, in the right direction.
But it said a lot more must be done and the longer the state waits to make that happen the more money is lost, $1.2billion a year, that's $3.4 million per day.
CALPERS said when the economy tanked so did it's investments and that meant the employers costs rose.
But CALPERS said the good news is since the crash in 2008, it earned 70 billion back in its portfolio; that's good for the long term, but doesn't help much right now.
The report also said contributions to employee pensions will double, even triple in the next few years. For example, the rate could go from 5.7% to 17% of the state's budget.
CALPERS said they are just the tool for employers to use to structure their retirement plans. It says its job is to manage the investments and the local government does the rest.
For the entire study click here siepr.stanford.edu
