The big problems are: too generous benefits and assuming rates of return on plan assets averages 7 to 10% a year forever.
And yes the solution: 401 k type plans for all state employees, teachers, and professors, and participation in social security if not already covered.
Indeed. Every state job opening has hundreds applying for it, due to generous benefits including unrealistic pension giveaways. Create a new benefit tier for new employees, doing away with the expensive benefits, and that saves money for CalPers. There will still be more people applying for those jobs than are available. As for existing employees, the benefits are a contractural obligation so the state can only hope the employees die before siphoning away retirement funds. They created a mess; the least they can do is to stop it from continuing by denying new hires the goodies.