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California pension woes a warning to Canada

The economic woes faced by cities and towns in California offer an object lesson for Canada during the current controversy over the sustainability of Canada's pension plan.

Public sector wages and pensions bankrupt a town

Keith Boag looks at how generous pensions are pushing some California cities towards bankruptcy. Originally Aired: Feb 1, 2012. 5:47

The economic woes faced by cities in California offer an object lesson for Canada during the current controversy over the sustainability of Canada's pension plan.

The CBC's Keith Boag visited San Jose, California's third-largest city, and Vallejo, a much smaller town, and reports that both are facing huge budget problems thanks to the huge cost of public-sector wages and pensions.

Here is his report.