Ransom, you should learn that capitalism rests on the foundation of contract law, and that our US and state constitutions include contract clauses. Public pensions may be reformed, however, these reforms will honor the sanctity of contracts, or be struck down.
More news. Social security is not a contractual obligation of the US government. States cannot declare bankruptcy under federal law.
Why do you cite historical bond returns and stock returns separately as if there is a choice between the two? Public pension plans have diversified portfolios.
Congress has recently approved a private pension plan assumption rate of about 7 percent (in the highway bill), not that far off from public sector pension plans. Visit saveperacola.com.