More than 2 million public employees, their dependents and families will require approximately $240 billion dollars worth of retirement benefits and pensions in the state's 10 large union plans, according to Business Week. With a number that large it is not surprising that representatives within the state are calling for reform. However, one employee advocacy group says reform will only lead to higher costs.
The Little Hoover Commission, which is responsible for crafting any potential reforms, claims that some cities could be on the hook for as much as one-third of the cost. Such responsibility will only further deepen the economic crises being felt across the state.
According to Business Week, the commission had suggested tying employee benefits to social security. However, that idea was immediately rebuked by Jack Ehnes, chief executive of the California State Teachers' Retirement System, who claimed that such a policy would add $1.8 billion to the shortfall each year.
Retiring teachers in California will account for $147.6 billion - the second largest public pension fund in the United States, trailing only the California Public Employees Retirement system.
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