State public worker pension fund takes big hit

State public worker pension fund takes big hit: "The California Public Employees' Retirement System portfolio has lost 31.1 percent of its value since peaking last fall, a staggering $81.4 billion drop. CalPERS officials say a 'rainy day fund' is helping to defray the losses - for now. But if the market slump continues, they will hit up state and local employers for more money. That's a painful prospect as California struggles through a fiscal emergency and municipalities cope with the foreclosure crisis and economic downturn.

The good news for the 1.6 million CalPERS retirees, workers and family members is that their pension benefits are guaranteed."
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Good news for the pensioners. Not for the taxpayers, who have to make good on that nifty guarantee. Here in Illinois we have a similar dynamic going on--guaranteed benefits but the state is allowed to underfund their share, year after year. Tick, tick, tick.