The pension time bomb is one of the most substantial risks facing policymakers around the world today and nowhere is the crisis more apparent than in California.
California has long promised more than it can afford. The California Public Employees’ Retirement System is chronically underfunded with a deficit of $138 billion listed for the year to June 2016. CalSTRS, the teachers' retirement plan is $96 billion in deficit.
The rising debts are a result of nothing more than chronic mismanagement. Over the past 17 years, as asset prices have risen, CalPERS debts have ballooned. CalPERS reported a surplus of $33 billion...
