California's pension system is living in a fantasy world where investment returns average 12.5% annually and there's enough money for everyone.Unfortunately that's not going to happen. A big study from Stanford Professor Joe Nation along with California Common Sense analyzed the need for major cuts to CalPERS, CalSTRS and UCRP.The largest union, CalPERS, has a 82% chance of a budget shortfall in the next 16 years.More highlights via Eric Savitz at Forbes: The June funded ratio, which measures assets to liabilities. is only 74% for CalPERS even using a high-rate of return assumption for its investments. Assume a 6.2% return,...