California Gov Proposes Boosting Pension Payments With Loan

Gov. Jerry Brown (D) wants to put a dent in the state’s $59.5 billion unfunded pension liability with a $6 billion loan from a short-term cash fund. The loan would save $11 billion over the long term, Brown said.

The payment would double the state’s annual contribution to the California Public Employees’ Retirement System for the next fiscal year that begins July 1. The fund has 65 percent of the funding it needs to pay pensions owed to state employees.

Brown said the extra payment would slow the growth of the state’s contribution to CalPERS, which is expected to be ...