[Tell It Right]

IMHO, often unreported is the fact that the PBGC (govt security insurance for pensions like FDIC is for banks) requires pensions to have a fairly high portion of their investments in bonds/money markets/cash. That's great for protection from stock downturns, but horrible for protection from inflation, longevity of pension recipients, and shortage of future workers funding pensions.

On a related note, by law the social security fund can invest in only 1 thing: U.S. treasuries.

[morphing libertarian]

The state ofCal is governed by CALPers. The frequently phony up the projections of investment income to justify increases in payments. And the unions support it and bribe the politcans that vote for the union contracts and benefits.

Icing on the cake: The Cal constitution requires the state to provide funds for any shortages in the pension funds.