Posted on 12/03/2016 7:06:36 AM PST by george76
Earlier today the Kersten Institute for Governance and Public Policy highlighted an updated pension study, released by the Stanford Institute for Economic Policy Research, which revealed some fairly startling realities about California's public pension underfunding levels. After averaging $77,700 per household in 2014, the amount of public pension underfunding for the state of California jumped to a staggering $92,748 per household in 2015. But don't worry, we're sure pension managers can grow their way out of the problem...hedge fund returns have been stellar recently, right?
Stanford University’s pension tracker database pegs the market value of California’s total pension debt at $1 trillion or $93,000 per California household in 2015.
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Looking back to 2008, the underfunding levels of California's public pension have skyrocketed 157% on abysmal asset returns and growing liabilities resulting from lower discount rates.
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Perhaps this helps shed some light on why CalPERS is having such a difficult time with what should have been an easy decision to lower their long-term return expectations to 6% from 7.5% (see "CalPERS Weighs Pros/Cons Of Setting Reasonable Return Targets Vs. Maintaining Ponzi Scheme")...$93k per household just seems so much more "manageable" than $150k.
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Of course, at this point the question isn't "if" these ponzi schemes will blow up but rather which one will go first? We have our money on Dallas Police and Fire...
(Excerpt) Read more at zerohedge.com ...
Please secede.
We need a Calexit ASAP
Oh look.
Stanford is just discovering something which was a common news topic in the 1960s when it began to happen.
Typical of the level of academic rigor in the American university system
Yes,I know...there are many fine,respectable Californians.
VIVA la welfare...
Please just let them secede.
Defined benefit retirement plans should be outlawed. Everyone should have a personal retirement account and health care account. Our household servants in Singapore had accounts that we were obligated to pay 10% of their pay into and the employee matched that. They ended up rich and owning their own apartment. The system works
While I feel sorry for the people who expected to retire with huge monthly checks, I worked for 30 years and every company I worked for except two, folded leaving nothing for retirees. Mostly, this was due to Bernie Schwartz, who used the pension funds as collateral to buy the companies. He then paid his debts with the pension funds, leaving nothing for the people. This was made illegal by Bill Clinton after Schwartz notified Clinton he was done. Schwartz spent as much time in the Lincoln bedroom as Mrs. Lincoln.
Politicians made this mess and it isn’t as if the taxpayers and the future retirees didn’t know as it happened. I certainly knew. It’s time for a few massive pension fund haircuts. Perhaps a few politicians should be shaved too.
What was it Frank Lloyd Wright said about 70 years ago? The United States seems to be tilted to the southwest and every thing that’s loose ends up in southern California.
Not a problem. The dotcom billionaires can pay.
Twenty percent of all Dem Congresspeople come from CA. 35% come from CA, NY, and MA.
lol. I was just thinking that.
And Trump ain’t helping them out! :)
Fifty states want California to secede; only Washington, D.C. wants California to stay in.
Don’t forget the $2.7T share of the US debt. We’ll want that paid off before CA secedes.
California needs bankruptcy. Easy money is enabling and funding their insane politics
Count Dallas amongst a growing number of cities forced to privatize police and fire and EMT’s because of corrupt politicians.
No bailout!
About that Calexit... Let’s roll
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