12/19/2019

What, Us Worry? California Lawmakers Still Ignoring Dark Pension Clouds.

"The latest ominous sign comes from a new CalPERS report showing that pension costs for California police officers and firefighters has hit 50 percent of their pay, as Ed Mendel explains in the Calpensions blog. It's an astounding—and escalating—number. These amounts are "unsustainable," according to the decade-old prediction of a CalPERS' former chief actuary that he quotes. Consider this shocker: "A few safety plans have reached 100 percent of pay," Mendel added, meaning that "for every $1 of base salary, the local government must pay another $1" to CalPERS. Dire predictions are coming true.

A California city manager told a newspaper that cities have become pension providers that offer a few services on the side. At this rate, cities won't have the money to provide any services at all, let alone ones on the side. Good for CalPERS for providing useful data, but don't expect the pension fund to lobby for changes to the pension plans or call for anything other than higher contributions from city and state taxpayers."