My opinion is that they should let it go bankrupt.  If people making tens of thousands a month are not willing to even consider cutting a portion of their "benefit" so that it might stay solvent, then screw it.  Let it go under.  Sure it will hurts the folks on the low end of the totem pole.  But those on top already have enough money so they would do just fine.   

If the unions won't budge, the people shouldn't budge either by agreeing to pay higher taxes to support it.  

You will never get a judge, who would be cutting his/her own PERS, to side with the legislature in court on cuts or changes.  Why would they?

Another suggestion is to tell the environazi's to pack sand and open the state lands to more timer harvesting to help fund schools which would in turn relieve that funding from other sources and divert the revenue into PERS until some agreement to changes can be made.  It could be done, it just takes the legislature to get off their butts and do it.