The Legislature faces at least a $383 million increase in pension contributions for public employees and school teachers over the next two years.

For several years, when the stock market was booming, the state was able to substantially reduce contributions to the pension system because more money was pouring in than was needed.

In fact, returns were so good for a while that the Legislature changed the expected rate of return on investments from 7.5 percent to 8 percent. That meant the state had to put even less money into pensions because lawmakers decided investments would perform better over the long term than previously expected.

Then, in 2001, the stock market dropped and investment returns plummeted, leaving a difference that has to be made up.

Lawmakers are considering deferring much of the pension costs this session to a later date, but it won't make the problem go away.

"If you don't pay now, you'll pay more later. You're just pushing it out into the future," said Matthew Smith, the state actuary.