(Sacramento Bee) The Sacramento region's largest local governments will see pension costs go up by an estimated 14 percent next fiscal year, starting a series of annual increases that many city officials say are "unsustainable" and will force service cuts or tax hikes.
The increases come after CalPERS in December reduced the expected rate of return from investments, forcing local governments and other participants in the state's retirement plan to pay more to cover the cost of pensions.
In recent months, local governments have found out just how much more they can expect to pay as CalPERS sent them notices of estimated costs. Ten of the largest local governments in the capital region can expect to pay a total of $216 million to CalPERS in fiscal 2018-19, an increase of $27 million over this year. Nearly half of that increase will be borne by one local government – the city of Sacramento.
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