Pensions: California, which is known for its earthquakes, just had a major one. Didn't feel it? You will. This quake isn't the earthshaking kind, but rather the state's decision to recognize reality when it comes to its insolvent public-employee pension fund.
Last week, the 85-year-old California Public Employees' Retirement System, or CalPERS, slashed its official investment forecast going forward, meaning that state and local governments, police and sheriffs departments, and even school districts will have to spend billions of dollars more to CalPERS to support their future retirees. And, no doubt, it will mean higher taxes for all.
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