Reforming California’s Pension System
California governments owe their current and future retirees maybe as much as $600 billion. But the governments aren’t going to pay. Taxpayers will be handed the bill, and in some cities, each household is on the hook for more than $50,000. In at least one municipality, the household share of the liability exceeds that city’s median household income.
Not every city is in as much trouble as Irwindale, though, where each household’s share of the combined pension debt is $134,907, according to Stanford University’s pension tracker, and the median household income is only about $62,000 a year. But few in California should rest easy – the unfunded pension problem threatens almost every wallet in the state.