With each passing day, California’s pension crisis appears bleaker than the day before.
Last month, we reported that the California Public Retirees’ System (CalPERS) had earned a dismal 0.6 percent rate of return on its investments in the last fiscal year. This is the second year in a row that it has failed to meet its target of 7.5 percent, and it is now over $100 billion short of meeting its pension obligations. Other pension plans are facing similar perils. As of June 30, 2015, the California State Teachers’ Retirement System was $76 billion short.
The time to act is now, argues former San Jose mayor and stalwart pension reform advocate Chuck Reed in a poignant op-ed for the Sacramento Bee.
“After 17 years of failure, it’s time for all stakeholders to get engaged in finding a solution, as has been done in other states, most recently Arizona… By adopting real, meaningful reform, we can protect vital community services, safeguard the long-term solvency of public employee retirement systems and put California’s pension systems on the path to a sustainable future.”
Read the full editorial here.