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New CalPERS rate-hike era begins with cost cut

State pension costs drop slightly in the new fiscal year under CalPERS rates set yesterday, a short break before a new full-funding policy adopted in April is expected to boost costs nearly 50 percent during the next seven years.

The state payment to CalPERS in the fiscal year beginning July 1, $3.9 billion, is about $8 million less than the current annual payment, “budget dust” to use an old Capitol term for an amount dwarfed by a large expenditure.