This is not the case in CA. In CA they are promised a phat return and when the markets declined in 08/9 they couldn't match the promise so they demand money from the state and schools to make it up. We also have a problem called spiking. A teacher is paid $60k for 20 years average and should get a $30k pension, but they spike it. They get a job as a deputy principal for $90k then principal for $120k and cash in vacation time to collect $150k in the last year and receive $75k in pension returns for life. How is a state suppose to afford that when they save to pay on a $60k wage for 20 years?