Caliornia’s public employee pension problems are welldocumented. Even under the most optimistic assumptions,the unded ratios or CalPERS, CalSTRS, and theUniversity o Caliornia Retirement Plan (UCRP) all wellbelow accepted standards. Yet there remains little appetiteto address the magnitude o these problems, and recentocial proposals produce only limited results.This report examines the current state o Caliornia’spublic employee pension systems. It examines benet levels,accounting methods and assumptions, projected uturecosts, measured by contribution rates, and it outlines thelikely impact o increased pension spending on Caliornia’snon-pension expenditures. It briely examines recentproposals to tackle the pension problem, and it identiespolicy options to reduce the magnitude o the problem.This project was supported in part through undingrom The James Irvine Foundation and Caliornia Forward.The author is wholly responsible or its content.
Comments may be directed to:
Joe Nation, Ph.D.Stanord Institute or Economic Policy Research (SIEPR)366 Galvez StreetRoom 109, Gunn BuildingStanord, CA 94305-6050