CalPERS officials know they have a serious problem: The nation's largest pension system holds too many risky investments to adequately withstand the next big economic downturn.
Yet the only proposal under consideration to shore up the system would take decades to properly rebalance CalPERS' portfolio. If the next major recession comes before that, the retirement system will have to sock state and local governments with devastating rate increases at a time when they can least afford it.
Read more: http://www.contracostatimes.com/opinion/ci_28980965/daniel-borenstein:-calpers-protracted-plan-for-reducing-investment-risk-leaves-pension-system-vulnerable
