Matt Mahan

It needs to grow over time.

People need to calculate their savings and their- You see your account.

You track it.

You track it.

You can up your contribution level.

If we were to move to that,

the private sector, I'm sorry, the public sector would need to be a strong match.

And I think the challenge is this, I don't think politically that's likely to happen.

What we've done in San Jose, which could be a roadmap for the state, is we negotiated, well, we had to go to the ballot, there were lawsuits, it was a very messy process.

I think it needs to be better handled.

But effectively, we created a different pension system for new employees.

that said, as you come in, this is what a right-sized pension system needs to look like.

We're going to have the employee and the employer paying more upfront.

We will be more realistic about the returns we're expecting.

We'll adjust over time faster if the returns are underperforming.

We've brought in better fund managers who are heavily incentivized to make smart investments and grow the investment.

And then most importantly,

If the returns fall short, the delta, the gap is covered 50-50 by the city, meaning the taxpayers and the employee in terms of lost benefits.

So there's shared pain on the backside if we miss our targets.

And what do we do for what we have now?