Retirement

Local cities work to pull down rising cost of pension ‘mess’

Local cities work to pull down rising cost of pension ‘mess’

Local cities are set to dedicate millions of dollars more per year on top of already-determined payments to try to bring down unfunded employee pension liabilities that are running up to seven times higher than a decade ago.

With California’s pension crisis clearly defined, cities are beginning to budget for even larger payments to the state retirement system to keep ahead of interest.

Newport Beach has committed to paying roughly $9 million more a year through 2038, and it’s exploring setting aside money in a trust. Without taking action, the city’s projected unfunded pension liability for the new fiscal year starting July 1 would balloon to $353 million, compared with $46...

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