A Stanford University study has estimated that three of the state’s largest pension funds face a total shortfall of more than $500 billion, The Wall Street Journal reports.
The study was done on the California Public Employees’ Retirement System, California State Teachers’ Retirement System and the University of California Retirement System.
The funds have made their own combined shortfall estimate of $55 billion as of July 2008. The report does not account for the more than $100 billion loss sustained by the funds during the recession. Governor Arnold Schwarzenegger has warned the shortfalls could increase California’s pension costs.