"[A]n actuarial consultant hired by unions contends [one California] state pension system, the UC Retirement Plan, uses conservative methods that keep short-term pension costs high to justify employee rate increases. The consultant suggests, among other things, that the UC plan's 'conservative' investment earnings forecast, 7.5 percent, could be increased to 7.75 percent. Some critics say pension funds should use a bond-based forecast, around 5 percent or even lower."  MORE >>