California Pension Crisis: Cut 30% of Payroll or Overturn Prop. 13

Breitbart reports:

Each new California legislative session starts with Republicans yakking about cutting state and local public pension benefits that are over $1 trillion underfunded. But as a minority party and with many of its loudest advocates hypocritically receiving a public pension, reform has just been about yakking. With CalPERS’ actuaries demanding a pension funding increase from $3.7 billion to $7.25 billion by 2020, the state must either cut payroll by 30 percent or find a massive new tax source, like overturning Prop. 13.

California’s massively underfunded pensions are due to both Republican and Democrat administrations granting benefits that are ludicrously more generous than private pensions, but also for hiring actuaries that have been making ludicrously optimistic estimates that investment returns would be high and that retired public employees would live shorter lives to “justify” low employer and employee pension contributions. This “methodology” explains why the state and its workers each only contribute about 6 to 11 percent of their pay to fund the actuarial “normal cost” for their pension liability.

If you are a taxpayers in California: your standard of living will have to go down to fund the lavish lifestyle of the government class.