By Mary Branham
California is facing massive budget problems by any measure. And among the major problems it faces is a $100 billion liability in its public retirement plans, said Jason Dickerson, principal fiscal and policy analyst, California Legislative Analyst’s Office.
Dickerson said local governments in California have taken action to reduce retiree benefits for current and future employees, as well as current retirees. That hasn’t gone over well, he said, and the state has no plans to take similar action.
The state has worked with the California Highway Patrol unions toward a plan in which officers will pay into the California Public Employee Retirement System—or CALPERS—trust fund in an effort to address some of the unfunded liability for that group. It won’t cover all of the annual required contribution, however, he said.