San Bernardino Retirees Describe Food and Medicine Trade-Offs as Billionaire Tax Claims Draw Pushback

Some retired state employees are weighing whether they can afford both groceries and medication as rising costs strain the pensions and health benefits they earned during their working years.

“One thing that I hear from other retirees is paying for medication or paying to eat,” said Erlinda Ochoa, treasurer of California State Retirees Chapter 6. “Which one do you do?”

That concern was among the issues raised Oct. 8 at the San Bernardino Elks Lodge, where chapter members met with State Treasurer Fiona Ma to discuss retirement security, health care and affordability. Attendees also questioned the community consequences of pension investments and challenged claims about California’s proposed billionaire tax.

Ma, a candidate for lieutenant governor, attended as part of her campaign outreach. Interviews with chapter leaders underscored the daily pressures facing retirees, from covering medical expenses to relying on family members for care and shared housing.

Ochoa, who retired 16 years ago, said one of the first adjustments is determining what a monthly pension will cover. As retirees age, medical appointments, medications and insurance costs become increasingly important parts of that budget.

“Those are the two very important things for retirees,” Ochoa said. “Their pension and their health benefits.”

Chapter President J.D. Stoddard said a pension alone can fall short, making Social Security and other retirement resources important supplements.

“I don’t know how anybody would survive if they didn’t have Social Security, too, because the pension is not really enough to live on,” Stoddard said.

Ochoa said members have described struggling to afford food alongside medications and medical care. Insurance premiums create another concern.

“The premiums are going up,” she said.

Pension investments drew scrutiny during the question-and-answer session after Ma highlighted CalPERS’ 14.8% investment return and credited private equity with helping generate higher returns.

CalPERS reported a preliminary net investment return of 14.8% for the fiscal year ending June 30, 2026, exceeding its assumed annual return of 6.8%. Its estimated funded status was 85%, compared with the approximately 88% Ma cited during her remarks. Funded status compares pension assets with the estimated cost of benefits owed to current and future retirees.

An attendee questioned what those private equity investments support, raising concerns about companies buying residential properties and investing in data centers that consume electricity and water.

The attendee argued that investment decisions should account for consequences affecting residents, rather than focusing solely on financial returns.

Ma said unions bring concerns to pension officials about private equity ownership of grocery stores, hotels and commercial buildings, including workers’ treatment. She said she contacts company executives and writes letters seeking action.

The same attendee challenged the suggestion that Proposition 40 would drive billionaires out of California, telling Ma that not all would leave if the measure passes.

The measure would impose a one-time tax equal to 5% of the net worth of billionaires who were California residents on Jan. 1, 2026. Real estate, pensions and retirement accounts generally would be excluded, according to the state’s official voter guide.

“You’re right. The billionaires want to stay here,” Ma responded.

She argued that moving companies and holdings outside California could still reduce state tax revenue, even if wealthy individuals retained homes here.

The discussion also addressed the expense of caring for an aging relative.

Ma described her father’s treatment after a fall, including emergency care, hospitalization and physical therapy. When he wanted to return home, she said, arranging care proved more complicated and costly than she had anticipated.

Having two caregivers come for 12 hours could cost $1,000 a day, she said, while his feeding needs required additional assistance beyond what those caregivers could provide.

“I did see how difficult it is, that transition and that extra care,” Ma said.

She said she wanted to pursue solutions allowing older adults and people with illnesses or injuries to remain at home longer. She also described concerns from a medical transportation company about reimbursements failing to keep pace with fuel, insurance and labor costs.

In an interview with IECN afterward, Ma identified savings and affordable housing as major retirement challenges. She said rising expenses make financial preparation harder and emphasized renovating older housing alongside new construction.

“We need to keep up with building new affordable housing that they can afford in their retirement,” Ma said.

She also warned about scams targeting older residents through unsolicited calls and messages claiming unpaid taxes or liens on homes. She described her father nearly providing credit card information after a computer warning directed him to a supposed technical support number.

For California State Retirees Chapter 6’s Ochoa and Stoddard, family members provide support that extends beyond a monthly retirement check.

Stoddard said living with a daughter and son-in-law became especially valuable when health problems developed.

“I just can’t imagine not having them around,” Stoddard said.

Ochoa said her daughter lives with her, an arrangement that also reflects the housing costs confronting younger adults. Apartment rents of $2,000 or $3,000 make living independently difficult, she said.

Their experiences show how financial pressures can affect multiple generations in the same household, while sharing a home helps meet needs for housing and care.

“The cost of living has gone up so much,” Ochoa said. “We have to just, you know, sort of help each other out.”