Wisconsin Gov. Scott Walker said Monday that he would be willing to consider changes in the state's $77 billion pension system, with a report on expected to be released this week on how the system could be improved.

Recession-plagued states diverted scarce money away from pensions to pay for more immediate concerns, leaving a $757 billion hole in the retirement funds covering millions of public employees, according to a study released this week.

The cost of pensions and retiree health benefits are soaring at the University of California, increasing pressure to raise tuition and cut academic programs at one of the nation's leading public college systems.

The legislation would end state-provided health care coverage in retirement but not force teachers into a 401(k)-style retirement plan.