California Pension Fix Leads to Risk as Market Volatility Soars

  • State's already reliant on capital-gains taxes prone to swings
  • Without change, teachers' fund was set to go bust in 30 years

It’s hard for states to fix pensions – just look at New Jersey and Illinois. And even when legislators in California agreed two years ago on a way to keep the teachers’ retirement fund from going broke, it left the state’s finances more exposed to financial-market swings.

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