Fox Business Network recently took a trip to the small town of Loyalton, California where retirees are seeing their pensions cut for the first time in CalPERS’ history.
“It’s just scary that they can do this,” said 71-year-old Patsy Jardin whose pension is going from $49,000 to just over $19,000 a year.
CalPERS voted to cut pensions for the city’s 5 retirees last month. The historic move came three years after the cash-strapped town decided to exit the pension system, but found itself unable to pay the $1.7 million penalty.
Could more retirees soon be suffering the same fate as Loyalton's?