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California voters are being fed a fresh reminder that big promises for public workers can come with big bills for everyone else. A newly circulated data pull shows more than 63,000 CalPERS retirees now collect six‑figure annual pensions, with dozens above $300,000 and a few breaking $400,000. That sharp number, paired with Governor Newsom’s veto of a bill that would have eased police and firefighter retirement rules, puts pension policy back at the top of the list for whoever runs the state next.
The numbers that should make taxpayers sit up
CalPERS paid roughly $34.6 billion in pension benefits in the last reported year and reported about $563 billion in market assets. That gives the fund an improving funded ratio — about 79% by CalPERS’ own accounting — but it also implies a remaining gap on the order of $140–$160 billion. In plain terms: the fund is healthier than some scare stories claim, yet legacy promises still leave a massive hole taxpayers will feel. The “more than 63,000” six‑figure retirees figure comes from a recent data pull that has driven headlines and political heat — and rightly so. Taxpayers need plain numbers, not soothing slogans.
Why this matters to cities, counties and everyday Californians
Local governments pick up a big share of employer pension costs. When pension bills rise, cities say they cut parks, fire prevention, or police patrols — the services residents actually see. The problem didn’t appear overnight. Law changes in the late 1990s made benefits richer for long‑service workers, while the 2012 PEPRA reforms tightened benefits for new hires. PEPRA helped, but it can’t erase promises already made. That legacy is what drives the anger: taxpayers paying for benefits negotiated in boom years while budgets tighten in the real world.
Real fixes that don’t require magic
There are practical steps a governor can take that don’t involve breaking contracts or waving a wand. First, fully defend and enforce PEPRA limits so new hires don’t inherit legacy perks. Second, tighten what counts as “pensionable compensation” to stop salary spiking and airtime deals that inflate pensions. Third, consider stronger anti‑spiking rules, smarter COLA design for future hires, and hybrid DB/DC options for new employees. Lastly, use one‑time supplemental payments and better disclosure so the public can see who’s collecting what. Yes, unions will howl — but governing means choosing between political noise and fiscal reality.
Wrap up: the next governor must pick a side
Governor Newsom’s veto of AB 1383 was the right instinct to avoid loosening retirement rules further, but a veto is not a strategy. The next governor must put a clear plan on the table: protect the retirements of those who earned them, but stop the system from becoming a gravy train for select retirees while schools, roads, and public safety struggle for cash. California voters deserve leaders who will fix the pension mess with common sense, not talking points. If the next governor won’t do it, taxpayers will keep paying the bill — and the “pension fat cats” will keep enjoying the cream.
