CalPERS, the state’s public pension fund, is overburdened by debt to the tune of over $150 billion, and it’s a ticking time bomb that could blow up anytime.
Gov. Brown has allotted $6 billion to mitigate the problem in his recent budget proposal, but some lawmakers question whether the plan could deliver what it hopes to do.
Another potential solution would be to soften the “California rule,” which posits that once an employee is in the public pension system, their benefits can’t be reduced. Two cases challenging this have been ruled on favorably by state appeals courts – but the final say goes to the CA Supreme Court.
We check in on the state of CalPERS, and take a deeper look at Brown’s pension plan in the budget.