The Democrats have made promises to a lot of states concerning public pensions and other welfare programs, such as health care for illegal aliens, to retain power in those states. They are hopelessly now in debt. The COVID-19 crisis was a godsend to them as they are now getting Queen Nancy to write a bailout ticket for them.
I wanna DayVorce....
They think a retirement fund is for retirees.
A retirement fund is there for Democrat politicians to loot and to buy votes with.
The institution of marital law (rather than martial law) is hugh and series.
NY wont have that problem. Thanks to Cuomos quick thinking, he purposely murdered most of the old pensioners.
This is not surprising in the least. I regularly run into guys who are living out their days on the beach in Mexico surfing every day, with plenty of cash, and when I ask them what they do. “Oh, I am a retired firefighter from California.”
Free medical insurance for life and at generous retirement pay. But California is not alone. Every state has allowed their fire and police unions to extract unsustainable retirement benefit packages. This will be the next financial crisis.
Why haven't they:
* Pursued a Corp. style deleavering fro theses long term liabilities
* Why are they still doing this ESD or whatever the bleep it is called portfolios which have a 100 basis points lower performance aka a full 1% lower than conservative pension managers. So if they are earning 7.5%, California is only getting 6.5%.
31 billion? That is around the numbers of Ford before Mulally came aboard & borrowed that much for the rebound they had. The problem is, California doesn't have product.
* Declare Bankruptcy & get it over with.
2/3 funded.
Easy, give them 2/3 pensions.
Headed to Burger King?
Posting your own stupid and grossly overstated article? What do you think FR is your own publishing house?
Such irony: Those with the worst COVID are colored blue,sanctuary,and locked down with enormous pension defects. These are also the states that push mail in voting.
Happy to report that my private employer pension fund is currently funded at 187%
I’ve been enjoying it for almost 21 years.
The state employees unions are among the most powerful political forces in the state of CAL. When Gay Davis took office, peace officers and fire fighters got 2.5% of highest year salary at age 50 and 3 at age 55. That’s times the years of employment.
The unions phonied up the projections on the retirement fund investments to show a gain of 7%, however the next year’s gain was under 1%. The state, Davis and the legislature, all bribed by the unions, had already given the PO and FF unions 3.0 at age 50. This was based on the phony projections. Note: when the projections are wrong the retirement formula is not adjusted.
When the state officers get 3.0 at 50, the locals LA, SF SD etc want the same so they can recruit and keep their people. It’s a cycle. So the entire state and locals are in trouble. We have term limits and politicians don’t care what happened in 10 years, they won’t be here.
Arnold and Jerry Brown did nothing for `12 years. And nothing is being done now.
When the benefits and pay go up, the bribes go up because the unions increase their fees to the employee.
Welcome to the corruption cycle of public employment
what realistically happens when a state’s pension fund goes belly up?...