The California Public Employees’ Retirement System board could vote next week to cut the benefits of nearly 200 former employees of a Southern California job-training agency by 63 percent. It would be CalPERS’ second such decision in a few months: The board voted in November to make comparable reductions to the benefits of five former employees of the tiny Sierra Nevada city of Loyalton, the agency’s first pension cut in memory.
Retirees from two other small agencies could face similarly unforgiving consequences of others’ irresponsibility.
The resulting small catastrophes differ in detail and degree but not kind from the possibilities awaiting other governments that have been more enthusiastic in their promises to employees than in their contributions to the system.
The decimated pensions are not only the latest of countless warnings to government officials.
Read the whole story in the San Francisco Chronicle