Posted on 12/27/2016 5:20:54 PM PST by SgtHooper
For the first time in its 85-year history, the California Public Employees Retirement System, CalPERS, is drastically cutting benefits for public retirees. Starting January 1st, four retired City of Loyalton public employees will have their pensions cut 60 percent. For 71-year-old Patsy Jardin, that means her pension will drop from about $49,000 a year to a little more than $19,000.
(Excerpt) Read more at foxbusiness.com ...
Won’t be the last time.
The next thing we’ll hear is that the taxpayers need to keep the promises that one group of government employees made to another.
Does that not meet the RICO standard?
The article also indicated the pension fund is 169B$ underfunded. Yeeowser!!
This one has been coming for decades. This will be like dominoes. Government employees at all levels have been looting the tax payers for decades as most everyone else went into decline.
Welcome to what Middle America has experienced for 20+ years now.
I actually agree with some that the promises made about the pension should be honored. I also believe that it should be California and California alone that should be required to fund the shortfall in its pension system as the system has engaged in political activity. Let California pay for what it promised, let’s see what happens to their paper ‘budget surplus’ then.
In many cases state employees only receive a pension from the state retirement fund-in some states, state employees and the state do not contribute to Social Security.
That’s what the courts are saying here in Arizona.
How many industries had to cut pensions due to factories closing because of government regulations?
When the Market crashes (and it will eventually) the Person who saw her benefits drop from the 19,000 to maybe half of that. I hope when Brown goes to Trump and the rest of us to bail them out, he informs him to raise their taxes and charge more for cow farts.
for later
VERY well said...
That’s the 2nd time tonight, I’ve written those words.
Fantastic
The problem is that the administrators of CalPERS made
very unrealistic assumptions about the rates of return the invested assets would earn. Yes from the mid 1930’s to the early 2000s, a diversified portfolio of stocks increased about 10% a year, that has not occurred for the past 15 years. Government bonds are paying what 1 -2 %.
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But, according to Gov Brown, CA is going to start launching satellites to collect climate data. Plus bullet trains. And lets not even bring up benefits to illegal aliens. Glad to see that California has its priorities straight.
Saw a CALPERS meeting years ago on tv.
They were crowing about how much stock they owned.
They were trying to control the private sector.
They will do anything to protect their stock portfolio.
It’s a political organization and cares nothing about retirement.
I guess they fell short of the “planned” 8% ROI for the last 3 decades.
I don’t think so. If I am a g. employee, (AND I AM) and they come to me and say, “Retire at age 22 and get 190% of your salary for the rest of your life, AND free health care and a new Cadillac every 3rd year...” Well, I don’t really believe that, when the government bubble bursts, I’m actually entitled to ANY of that.
YES, I realize that “age 22” and “190%” are gross exaggerations, but the promises that the g., on all levels, have made to its employees are INSANE.
No worries - with Brown’s commitment to lowering CA’s carbon footprint the pension funds will soon be back in the black...
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