Originally Posted by CAcop
1. Intrest off their holdings. This runs 70-90% depending on the economy. I haven't checked the current rate in awhile but it is out there if you want to find it.
This is where I see the big problem if say a 7% rate of return is what was planned for. I don't think my roomy expects the tax payers to make up any difference in rate of return, but I'm assuming CalPERS has been supplemented out of the general fund. I have nothing to back that up though. Research on that has turned up nothing.
I think government pensions should operate like private 401k's where you get back what you have put in plus actual interest on holdings.