Nice trick

For CalPERS, a 1 percentage point cut in assumed inflation offset 80% of its much-publicized 1.25 percentage point lower assumed investment return. Other public pensions have gone even further, with the average assumed real investment return nationwide rising from 4.2% in 2002 to 4.6% by 2016. Public pensions’ 0.4% increase in assumed real returns came in the face of declining yields available on Treasury inflation-protected securities over the same time period. As a result, the risk premium pensions assume they’ll earn over safe investments skyrocketed from 0.7 percentage points in 2001 to 3.8 percentage points in 2017.

Publicaslly reduing rate of return assumptions raise cities payments to make the difference.  But assuming inflations adjustments are lower, reduces future payments, partially offsetting.

Unfortunately is also illustrates that California global warming taxes are hogwash.  The builtin inflation adjustments  mean that California global warming axes simply subsidize  the retirees energy consumption with worker energy taxes.

This is true in France also, where the working class clearly saw the scam and revolted. it will be true in California.  Millennials are loading up on credit to stay alive while California environmentalists tax them to waste energy.  Tax the little guy, create more global warming then blame the little guy when he uncovers the scam.

Not a one of the kanosian economists have offered a way out, they all keep their mouth shut about this, as they did during the destruction of Illinois.   All economists no that price fixing, automatic inflation adjustments,  by government is an absolute horror of a pro-cyclic stance, yet they keep their mouth shut.