Burbank officials this week said plans by the state's pension agency for public employees to increase employer contributions will sting in the short term, but "is a good thing" for the city's long-term financial health.
The California Public Employees' Retirement System, or CalPERS, last week approved new policies that will increase employer contributions in an effort to fully fund the system within 30 years. That means median contribution rates for public safety and miscellaneous plans could increase by 34% and 36%, respectively, over 10 years, according to CalPERS.
"It's a good thing what CalPERS is doing, being able to address the lack of funding for the pension program," said Burbank Financial Services Director Cindy Giraldo. But, she added, "it does equate to short-term pain for cities."