California’s unfunded pension liabilities will burden state and local governments

In Politics by Michael Rae

The California Public Employees Retirement System (CalPERS) recently announced investment losses for its latest fiscal year, which will add to the state’s pension debt. CalPERS now has approximately $611 billion in pension debt and is 72% funded, meaning it only has 72 cents of every dollar in retirement benefits already promised to workers. As a result, California’s state and local governments can expect to face continuing budgetary pressure from public employee pension benefit costs for the next several years.

CalPERS reported a -6.1% return for its fiscal year ending June 30, 2022. Even though it lost billions, the -6% loss compares