CalPERS decides to speed up rate increases for state - School Districts will pay more for employee retirement.

The pension fund's governing board voted to increase the state's contribution by about $400 million beginning in the upcoming fiscal year, starting July 1. By 2016, when the increase is fully in effect, the state will be paying the California Public Employees' Retirement System an additional $1.2 billion a year, or roughly $5 billion.

Rates for school districts and local governments will also rise, but the increases won't start taking effect until 2016. The increases will be phased in over five years, not three. It wasn't immediately known how much extra the schools and local agencies will ultimately pay; they currently contribute an aggregate of about $4 billion a year to CalPERS.