I know this discussion is focus on California, but for context this is not true in all states. Yes, many states have extremely underfunded pensions (Illinois sounds like a disaster) but others (like neighboring Wisconsin) are fully/nearly fully funded.

Can you explain why you think that pensions and social security are Pyramid schemes. I view them more like insurance, but maybe you have an insight that I don't have.

A social insurance system, in which one generation pays for the previous generation, begins to look more like a pyramid scheme when demographics shift and benefits aren't adjustable downward.

Current social security taxes go to pay current beneficiaries and any surplus is spent just like any other tax money and the federal government issues IOUs to the SSA. That’s fine as long as thier are enough workers paying taxes to pay beneficiaries. But as the working age population gets smaller and life expectancy gets longer, either the government will have to raise taxes or decrease benefits.

There is one other fix - make immigration easier. But in the current climate, a politician could never suggest that.