The second largest pension fund in the U.S. might move 12 percent of its portfolio into comparatively safer global stocks, infrastructure, and Treasuries, CalSTRS documents revealed.

Leaders of the second-largest U.S. city failed to properly consult with municipal-employee unions before pushing through the changes in 2012.

Costs for employee salaries, benefits and pensions will increase by $192 million, or more than 10 percent, the citys top budget official said.

No changes have been proposed to city pensions, which the commission said now consume 18 percent of the city budget, up from 3 percent in 2003.

The second-largest U.S. city relies on an overly optimistic forecast of 7.75 percent annual returns for its pension fund, causing the gap between available assets and obligations to widen, according to the report by the L.A. 2020 Commission.

In addition to inconsistent state funding, the university faces rising costs for debt service, employee pensions and retiree health care.

The council of the second-most populous U.S. city approved the measure to treat so-called e-cigarettes the same as conventional tobacco products.

Stockton and San Bernardino may not recover unless they rein in their rising pension costs, Moodys Investors Service.