Chuck Reed: Stop Whistling Past the Pension Graveyard
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.