California pension fund delays rate increase on state

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A sign stands in front of California Public Employees' Retirement System building July 21, 2009 in Sacramento, California.

The board of California's largest public pension fund has decided to delay asking the state for more money to pay for employee retirement benefits next year.

One board member said during Wednesday's meeting he is concerned about the state's dire fiscal condition. California faces a $19 billion budget deficit in the fiscal year that begins in July, prompting Governor Arnold Schwarzenegger to propose eliminating the state's main welfare program.

A key committee of the California Public Employees Retirement System voted Tuesday to take $600 million more from the state than it did last year to help pay for government retirees.

The board will consider how long to postpone the rate increase during its June meeting.

© 2010 The Associated Press. All rights reserved.

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