Many moons ago PERA was overfunded, and the state was eager to reduce their contribution. PERA said, in effect, "Wait, those funds belong to the retirees, and because we have done a good job of investing, you shouldn't be able to reduce your contribution." Ultimately a compromise was reached which allowed the state to somewhat reduce their contribution, but also fixed the yearly benefit increase at 3%. Now neither the state nor the retirees want to take the hit that balancing the accounts will require. Having both parties feel some of the pain strikes me as the fairest way to solve the problem.