[quote=CA renter]
Yes, they *are* cashing out, but the homes will not belong to the bond investors. These are more like revenue bonds — it is only the rental payments that back these bonds. And I also have no doubt that CalPERS (and others) are going to be investing in these, if they haven’t already…and the union workers will be blamed, once again, for Wall Street’s scams.
[/quote]

Who selects the company to manage the CalPRES fund? That’s where the blame should lie. Certainly public sector employees and their unions should be advocating for a well funded fund that doesn’t invest in junk but they don’t care because they still think they have a tax payer backstop. Get rid of that backstop and then figure it out.

I really don’t care how public sector employees chose to set up their retirement plan. It just needs to be defined contribution from the tax payers perspective. If your managed plan actuaries screw up then share the burden among the current employees and retirees.