They said 'underfunded' was just an accounting gimmick

Reed, former mayor of San Jose:

Loyalton withdrew from CalPERS in 2013, upon the retirement of its last guaranteed pensioner. For council members, it just made sense — after all, the town had been fully paying its required annual contributions all along. But what it didn’t count on was the $1.6 million termination fee demanded by CalPERS to cover unfunded liabilities which CalPERS has allowed to grow for the last 17 years. The fee amounts to a whopping $320,000 per each of Loyalton’s five retirees, an amount that is impossible for the town to pay. And now CalPERS has put the retirees on notice that their monthly checks will be cut.

Do you mean that a bunch of union thugs will be chasing me in court to extract my 100 grand share?