Study lists California pensions’ shortfall at $500 billion
December 14, 2011
California’s three largest pension systems are on the hook for $500 billion beyond their current ability to pay retirees, according to a study released Tuesday by Stanford University Professor and former Democratic Assemblyman Joe Nation and a student researcher. [SacramentoBee]
The Stanford Institute for Economic Policy Research issued the report about CalPERS, CalSTRS and the University of California Retirement Plan documenting what it claims is the state’s deepening pension crisis. The report found the three pension systems shortfalls have risen 15 percent since a Stanford estimate of $425 billion in April 2010.
The annual cost to the state of delaying pension solutions is $3.4 million per day, the report said.
In 2010, a Stanford institute study commissioned by then-Gov. Arnold Schwarzenegger concluded CalPERS, CalSTRS and the UC pension system were carrying a collective $500 billion in unfunded liabilities.
Both the pension systems and public employee unions disputed the assumptions, methodology and conclusions of the 2010 study. Labor called it a partisan hit piece aimed at fueling the anti-public pension agenda.