Endowments getting hammered

Think this is a problem?

"In California, the public pension fund CalPERS says state, local and county governments may have to chip in as much as an additional 4 percent beginning in mid-2010 to cover its pension losses. Its total assets had fallen from $260 billion last fiscal year to just $178 billion on Dec. 1."

http://www.signonsandiego.com/uniontrib/20081204/news_1b4endow.html