Golden State Not So Golden

California’s three major public pension funds are underfunded by more than half a trillion dollars, according to a report released Monday, the San Jose Mercury News reports.

Gov. Arnold Schwarzenegger (R) commissioned the study, which was prepared by graduate students at the Stanford Institute for Economic Policy Research (Theriault, San Jose Mercury News, 4/5).

The study examined:

  • The California Public Employees’ Retirement System;
  • The California State Teachers’ Retirement System; and
  • The University of California’s retirement system (Walters, “Capitol Alert,” Sacramento Bee, 4/5). 

Pension Liabilities Could Lead To Health Cuts, Other Changes

The Stanford report suggests that California would need to put $360 billion into its pension and health benefit systems immediately to have an 80% chance of meeting 80% of the obligations within 16 years (Contra Costa Times, 4/5). Greece is the Word……

 

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