A recent poll found that California voters believe pension benefits for firefighters, police, teachers, and other public employees are too generous.
The Field Poll, conducted with the UC Berkeley, found public opinion has swayed in the last two years over whether pension plans for public employees were acceptable. Two years ago, 40 percent of voters thought pensions were at about the right level, while 16 percent believed they were not generous enough.
Now, 42 percent of voters think pensions for public workers are too generous, and 34 percent think they're about right.
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The poll comes amid evidence that government pension costs are swallowing funds for services at the state and local level. The Little Hoover Commission, a watchdog panel created to overhaul state employee retirement plans, estimated a $240 billion shortfall in retirement fund assets for the 10 largest public employee plans in California. Some cities may have to support retiree benefits with one-third to half of their general fund budgets, according to the Commission.
California teachers' pensions in particular are under fire, and the flaws in the school retirement system only exacerbate the issue. A study by the TIAA-CREF Institute found that teachers must choose from more than 3,000 investment options offered by six dozen financial firms, making it difficult to choose a sound investment. The pension system is also plagued with high fees that eat into employee nest eggs.
Critics claim that the TIAA-CREF study demonstrates a lack of oversight in California's public-school 403(b) plans.
The Little Hoover Commission gave recommendations last month to improve the system. But the pension fund representing California teachers criticized the Little Hoover Commission's suggestions, claiming that the reforms were legally risky and would drive costs higher.
One recommendation included coordinating pension benefits with Social Security, but this tactic could cost $1.8 billion more each year, if the payments are not structured correctly.
Public pension plans in California support retirement benefits for more than 2 million public employees, retirees, and their families.
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