Towards Finding Innovative Solutions to Address California’s Unfunded Pensions
By Assemblyman Travis Allen
Last week, I attended the “California Public Pension Solution” Conference to discuss plausible solutions to address the unfunded liabilities within California’s pension system.
As a certified financial planner and the Vice Chair of the Committee on Public Employees, Retirement and Social Security (PERSS), I am committed to working on innovative and practical solutions to address the unfunded pension and healthcare debt in California. It is time that California gets serious about working toward true pension reform and continues having those difficult conversations.
A 2010 study by the bipartisan Little Hoover Commission found that the top 10 public employee pension systems in California faced a combined shortfall of $240 billion, and a government watchdog organization recently estimated that California’s debt could be as high as $1.1 trillion. A review of CalPERS’s assests continuous shows that the CalPERS pension fund is only 67% funded. Most pension funds should maintain a level of funding at no less than 80%. And, while CalPERS has begun taking minor steps to address the unfunded liabilities, there is still plenty of work to be done.
The in-depth conversation and valuable information attained at the conference will help me discuss California’s pension issues in the coming year when the Committee on PERSS brings then forward for debate.