Last Thursday, GFC delivered letters to the State Capitol from 337 members of the GFC Network opposing AB 1383, a bill that would boost pension promises to government employees without setting aside sufficient funds to meet those promises. As explained here, that lethal combination produces unfunded liabilities that have already forced California taxpayers to boost annual spending on the state pension fund (CalPERS) from less than $1 billion in 2000 to $23.4 billion in 2025. AB 1383 would add to that problem.
If California’s elected officials want to continue providing defined benefit pensions to government employees, pension commitments must either be fully pre-funded upfront using secure assets like US Treasuries—which guarantee future payouts large enough to honor these promises without demanding extra taxpayer funding—or taxpayers must be shielded from financial shortfalls.
