Calif pension fund asks state for additional $600M

SACRAMENTO, Calif. (AP) -- Facing massive investment losses, the board of California's giant pension fund voted Tuesday to make the state increase its contributions to employee retirement benefits by $600 million in the coming fiscal year.

The increase comes as California grapples with a $19 billion budget deficit and a threat by Gov. Arnold Schwarzenegger to eliminate its welfare program.

The contribution increase would be for one year starting in July, but the board is likely to require similar increases in future years. Local school districts, already facing their own budget struggles, also will see their pension contribution rates grow.

The development is driven largely by huge investment losses by the California Public Employees Retirement System, but also because people are living longer and retiring earlier.

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