The Daily Outrage: California public retirement funds fall short by $535 billion 

WHAT: California’s three major public pension funds are underfunded by more than half a trillion dollars, according to a new Stanford Economic Institute report commissioned by Gov. Arnold Schwarzenegger. California would need to immediately put $360 billion (which the state doesn’t have) into the California Public Employees’, California State Teachers’ and University of California retirement systems in order to have an 80 percent chance of meeting 80 percent of obligations to their 2.6 million retirees within 16 years.

WHY IT’S A BAD IDEA: If California’s pension liabilities keep growing, they will ultimately use up the funding for basic public services such as schools, parks and health care.

WHAT’S BEING DONE: The Stanford report backed Schwarzenegger proposals to reduce benefits for new public employees; increase employee pension contributions; and move workers into a partial 401(k) benefit plan.

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Staff Report

Staff Report

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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