Giant California pension funds may lower earnings expectations

SacBee ^ | 03/03/10 | Dale Kasler

[TigerLikesRooster]

Giant California pension funds may lower earnings expectations

dkasler@sacbee.com

Published Wednesday, Mar. 03, 2010

Bruised by heavy losses and wary of the economic road ahead, California's two big public pension funds are considering reducing their official forecasts of future investment results.

Such changes would have huge implications for taxpayers and public employees. A reduction in the investment projections would put more pressure on taxpayers and workers to support the two retirement systems, which already are significantly under-funded. The less the California Public Employees' Retirement System and the California State Teachers' Retirement System believe they'll earn from their investments, the more they have to depend on other sources.

For instance, CalSTRS long has assumed it would earn 8 percent a year on its investments – but is now being urged by consultants to scale back that figure. Board members are sweating the potential impact.

"If we go less than 8 percent, we're going to make it up where?" board member Kathy Brugger asked her colleagues at a meeting last month. The board plans to decide in September if it should lower the estimate.

[TigerLikesRooster]

P!

[eyeamok]

“If we go less than 8 percent, we’re going to make it up where?”

BY REDUCING BENEFITS, preferably to the limits in Social Security and Medicare like we the Serf’s.

[Da Coyote]

Unions are run by liberals.

Liberals are that way because they cannot understand math or economics.

Why should I pay for their stupidity?

PAY YOUR OWN WAYS, LIBERAL SLIME.

[Freedom_Is_Not_Free]

“If we go less than 8 percent, we’re going to make it up where?”Arnold is going to start transfering an additional 5% of gross pay to the retirement funds. A person who makes $50,000 per year is going be paying an additional $2,500 to the pension fund, in addition to what they pay now. He is also going to cut pay 5%. So a state worker making $50,000 today is going to be making $45,000 from now on, with half that difference going into the pension fund.

[Logical me]

The less the California Public Employees' Retirement System and the California State Teachers' Retirement System believe they'll earn from their investments, the more they have to depend on other sources.

These nitwits just don't get it. Why are their investments doing poor, is because the very bunch of liberals have destroyed California. Add the almost total destruction withing the communists Federal Government in control now, and you have no choice. Reduce benefits like all the rest of us Americans had to.

[eyeamok]

Not good enough, how about this instead:
No Public Servant or Public Employee shall be entitled to nor receive any Taxpayer Funded Retirement Benefit in excess of Social Security and Medicare Benefits paid.

[razorback-bert]

If they are going to just make up forecast numbers, why not use 16%?