Spotlight: State to Pay Less to CalPERS Fund

The state will pay $750 million less in pension contributions to the California Public Employees’ Retirement System next fiscal year because of rising investment returns and lower inflation. The board of the $135-billion fund adopted new employer contribution rates that will reduce the amount the state pays for state and school employee retirement benefits during the 1998-99 fiscal year. The fund’s three-year return for the period ended Sept. 30 was 18.6%, more than twice the 8.5% return used in calculations.