The problem is CalPERS. If you are not retired, you should not be drawing from a pension. When a person goes to another government job and starts paying into CalPERS again, the pension needs to stop.
??? The pension is somehow not a contractual obligation? They didn't work the required years? They didn't meet the pension terms?
I think the issue is the 'you should not ...' part. I don't see it as a moral issue.