That article was written during a booming stock market, too. CalPERS (the retirement fund in question) projects something like 7-8% stock returns to stay even nominally solvent.
If the market doesn't (pretty much fully) recover within the next six months, the entire CA pension system is going to be catastrophically insolvent.
The sad part is that the pension system is already walking dead. They’re going to need a bailout, it’s only now people are starting to have real conversations about it.
Should the CA tax payer pick up the bill for promises made to state employees that were never expected to be payable? We’ll see how that goes. Either way the tax payer and the pensioners lose.
If the market doesn't (pretty much fully) recover within the next six months, the entire CA pension system is going to be catastrophically insolvent.