Reason Why State Pension Costs Rapidly Grew

Where: California

What was the rate of growth of California pension costs?

• from 2007 to 2016 the increase was up $7,022 per employee
• national median increase of $1,216
• California cost increase was 6 times the nations

How did this happen?

• correlation between pension cost increases & unions/collective bargaining
  • cities with 50% union membership saw 4times the cost increase

Funding for this researcher’s study provided by

• Laura and John Arnold Foundation
• Berkeley Institute for the Future of Young Americans
• Institute for Research on Labor and Employment

Sacramento Bee | Local Pension Costs Grew in California at Nearly Six Times National Rate