OPINION: Pension roulette

Most California government employees receive defined benefit pensions, a system that guarantees a certain payment to retirees but which has become a burden to taxpayers, writes Peter Hannaford in the American Spectator.  Although the benefits are guaranteed, the investments by state pension officials are subject to the volatility of the stock market, making planning like a game of roulette that has resulted in unfunded liabilities that exceeding $1 trillion.  However, a new measure planned for the 2016 ballot may replace the current program with a system similar to the 401(k) plans offered to new hires.

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