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"Many of the union opposition letters mention the shift of investment risk to employees, potential problems created by a five-year vesting period and a 401(k) employer contribution limited to the pension normal cost, and questions about investment fees and management.... A California Faculty Association letter said the bill 'would promote 401(k)-style retirement plans over more state-run pension plans' and would set a 'dangerous precedent' by allowing state employees to opt out of CalPERS."
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