From Daniel Borenstein's column in the Contra Costa Times:
Some choice quotes:
" In a sobering, but commendable, report, Alan Milligan calculates that the nation's largest pension system faces better-than-even odds of being dangerously underfunded at some point during the next 30 years."
"He told the board that CalPERS needs more taxpayer money than previously thought from state and local governments and voiced concern about "slow progress toward full funding." CalPERS, at last accounting, had about 74 percent of the funds it should."
"Local government leaders will complain too, saying they can't afford the rate hikes. It's time for them to face reality, to recognize that CalPERS has shielded them for far too long. They've been making unaffordable pension promises while whining about paying a bill that doesn't represent the full cost."
To anyone that still doesn't think CalPERS is in trouble and that it's going to cost us more, I say think again. We will be looking at either tax increases or reductions in services to pay for the needed 30% increase in contributions that will be required to close the gap.
Still think our politicians haven't been bought and paid for by the labor unions? How else do you explain "unaffordable pension promises" being made?