Republicans should move to change this pension program, emphasizing the need for an actuarially sound program and creating a model for other public sector employees going forward. It is a question of “Doing as you say.”
State Controller John Chiang dropped a political bomb the other day, although he was so quiet about it, one could say it was a stealth bomb.
Chiang added public pension systems to his already large fiscal database. One chart reveals that their “unfunded liabilities” – the gap between assets and liabilities for current and future pensions – exploded from $6.3 billion in 2003 to $198.2 billion in 2013.
Moreover, that startling number assumes that pension systems will see asset earnings of about 7.5 percent a year – a number that some are beginning to see as unattainable.
Read more here: http://www.sacbee.com/news/politics-government/dan-walters/article3507521.html#storylink=cpy