Posted on 07/17/2019 11:09:55 AM PDT by Be Careful
Cal has along term pension deficit for public employees. IIRC the figure is 149 billion. The state constitution requires the state to pay the pension debt/commitment.
Example of exacerbating the problem. Gov. Gay Davis raised the pensions after the union used a projected gain of the fund of 7% poor year. So the bills were passed and signed and now cops and Fire Fifghers CHP and corrections, get 3.0 at age 50 times years of service. It used to be 2.5 at 55 (my formula retiring in 1998.)
Oh, the fund din’t go up 7% it went up 1% for a couple of years. Under perform the projection and soon you’re into real money. Some say the projection was bogus, but no one did anything about it and i don;t know how you prove it., That was two governors ago.,
Govs. Ahnold and Jerry knew this and basically did nothing. So the problem has worsened for 13 years. Looks like the feds may pout band aid on Cal’s problem.
It’s hard to understand that when a problem like this is discovered...someone, who cares, doesn’t do something about it.
We have the luxury of having great minds in this wonderful country. Where are they when they are needed?
The public employee unions are very storing in Cal. When they negotiate contracts they are negotiating with people they have already bribed, up to an including the governor.
One union uses the other’s contract to whip saw their own negotiations. Example, the CHP will say, we need to keep up with LAPD play and benefits in order to recruit. And it goes back and forth. Corrections wants what the CHP gets. SF wants what LA gets and so forth.
The public rarely pays attention, then 2 years later a someone does a story and we ask, how did that happen. Courts are reluctant to overturn contracts. Not even sure they can. so here we are.
The Pension Benefit Guaranty Corporation is an agency of the United States government that was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of voluntary private defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at the lowest level necessary to carry out its operations.
If your pension is in jeopardy, it's either your fault for demanding too much for employers to pay, or your company promised more than it can deliver. In either case, I don't see any reason at all for my tax dollars to support such behavior.
There are plenty of private sector pension plans in trouble, too.
This begs the question that I already asked:
Don’t we have the brain power or the will to solve this burgeoning problem?
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