The California Public Employees’ Retirement System (CalPERS) has quite the cushy deal. If they have a shortfall, they can simply tell the state and municipalities to make up the difference. This year that will cost the state $3.7 billion.
Plus, they just ignored the advice of their own chief actuary and lowered their expected return from 7.75% to 7.5% instead of 7.25%, numbers that some still think are unrealistic.