California Firefighters Pension: Solvency Alert

If you are one of the 410,000 firefighters who depend on the CalPERS (Public Safety Division), your retirement security is mathematically at risk. The fund operates with a funding ratio of only 68.2%—well below the 80% threshold considered healthy.

What This Means for Your Retirement

A funding ratio of 68.2% means that for every $1.00 the fund owes you in retirement, it currently holds only $0.68 in assets. The remaining gap must come from:

• Future investment returns (increasingly unlikely at 7%+ return assumptions)
• Increased taxpayer contributions (politically difficult in California)
• Benefit cuts to retirees (the most mathematically likely outcome)

The California Inflation Factor

Even if your nominal pension remains intact, California's local inflation rate of 5.2% is eroding purchasing power faster than standard COLA adjustments. A fixed $3,400/month payment today buys significantly less by 2037.

Wealth Protection Strategy for California Firefighters

Smart firefighters in California are not waiting for political solutions. They are:

1. Maximizing 457(b) or 403(b) contributions to build a personal safety net outside the pension system
2. Opening a Self-Directed IRA with physical precious metals (per IRS Code 408(m)(3)) for counterparty-free diversification
3. Requesting pension buy-out analysis if offered by CalPERS (Public Safety Division)
4. Consulting a fee-only fiduciary advisor (not a commission-based salesperson)