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City of Bell Public Corruption Scandal
Pension spiking could cost CalPERS nearly $800 million
Pension spiking could cost CalPERS nearly $800 million

SACRAMENTO — A legal way to increase pensions by boosting the final pay of retiring state and local government workers could drive up public employee pension costs in California by as much as $796 million over the next 20 years, the state controller said Tuesday. The estimate was part of a new audit of the California Public Employees' Retirement System, commonly known as CalPERS, the nation's biggest public pension fund, with $302 billion in investments. The audit, by Controller John Chiang, reviewed 11 state and local government agencies and concluded that the pension agency makes itself vulnerable to the practice, known as pension spiking, by not aggressively...

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