I don't think the problem is compensation. The problem is awarding overtime only in the last year, so that your pay and benefits can go up forever till you are entitled to pensions. This creates a situation where your pension + benefits can be in the ballpark of half a million dollars all life.
No one, no investment, no taxation can pay for something like that.
> And who is going to fund them? As of now California tax payers are paying for pensions. Surely this is not a sustainable way of running things?
Why not the rest of public sector employees compensation comes out of tax revenues. The only reason pensions are unsustainable now is because in order to hide the cost of pensions the budgets underfuneded pensions years ago and the funds they did allocate they assumed extremely high returns on.
No one, no investment, no taxation can pay for something like that.
More here:
https://news.ycombinator.com/item?id=1638926
http://www.latimes.com/projects/la-me-el-monte-pensions/
https://news.ycombinator.com/item?id=14083193
>>Pensions are a fine tool but they have to be funded responsibly
And who is going to fund them? As of now California tax payers are paying for pensions. Surely this is not a sustainable way of running things?