CalPERS changes will affect local gov...

CalPERS changes will affect local governments

Posted in the Martinez Forum

Anonymous

Vallejo, CA

#1 Apr 18, 2013
CalPERS changes will affect local governments
http://www.dailyrepublic.com/news/solanocount...

Accounting switches being made by the California Public Employees’ Retirement System will likely mean higher payments for Solano County and local cities.

That in turn could leave local governments having to find more money, make cuts or do fewer service expansions, get employees to pay a higher share of retirement costs or use a combination of options to make up the difference. The big question is how much money will be involved.

“It won’t be small change,” Solano County spokesman Stephen Pierce said.

CalPERS provides the pension and health benefits to more than 1.6 million public employees, retirees and their families and for more than 3,000 employers across the state. It receives money through its investments, employer contributions and member contributions. Its unfunded liability is a reported $87 billion. The goal is cover that and future costs in 30 years.

The agency has used what it calls a “smoothing” method to reduce volatility in employer contribution rates. But CalPERS investments have seen large fluctuations in recent years, including a $57 billion loss in 2008-09.

Now CalPERS wants to smooth employer contribution rates over five years instead of 15 years. It’s an accounting change that will make a difference for counties, cities and school districts.

Solano County across all its various funds pays CalPERS about $23.8 million annually, Pierce said. He didn’t know Wednesday how much this might increase once the changes take effect in the 2015-16 fiscal year that starts in July 2015, adding there’s no simple formula.

“How it may affect one organization compared to another may be different,” Pierce said.

The county will need an actuary to figure out its increased costs, he said.

Solano County already faces an estimated $14.7 million general fund structural deficit next fiscal year, though it has savings to cover the amount. Left unchecked, this structural deficit could grow to $18.6 million in 2014-15 and $20.9 million in 2015-16, a county report said.

Pierce said higher CalPERS costs are included in such budget projections. The question is whether the estimates are high enough to cover the planned accounting changes. Another variable is how much an improving economy might send more money into county coffers to help cover CalPERS increases.

Amid all the unknowns, Pierce could make one certain statement:“It’s not an additional cost we want to have.”
wasteing money

Hayward, CA

#2 Apr 18, 2013
can any public school person spell "BANKRUPTCY" ?
Duh

Vacaville, CA

#3 Apr 19, 2013
If you are going to ask about the capacity of the school district's ability to dpell then you should yourself know how to spell "wasting".

Amazing how so many people will make personal attacks a priority and have hundreds of comments on silly threads created by this Sam person, yet nothing is stated under this story which will impact the fiscal stability of the city, it's ability to hire new employees and increase the total unfunded liability. The mayor stated he wants to hire 19 new police officers. Well I'd like to hear how he plans to pay for them considering how much the PERS contribution is going to increase.
wasteing money wrote:
can any public school person spell "BANKRUPTCY" ?
anonymous

Vacaville, CA

#4 Apr 19, 2013
Duh wrote:
If you are going to ask about the capacity of the school district's ability to dpell then you should yourself know how to spell "wasting".
Amazing how so many people will make personal attacks a priority and have hundreds of comments on silly threads created by this Sam person, yet nothing is stated under this story which will impact the fiscal stability of the city, it's ability to hire new employees and increase the total unfunded liability. The mayor stated he wants to hire 19 new police officers. Well I'd like to hear how he plans to pay for them considering how much the PERS contribution is going to increase.
<quoted text>
Hay, it's what everybody wants to hear. Who cares about paying for them. That's the problem of those suckers who actually pay something for local government because they work or live here.
ComeOffThatBongV IB

Vallejo, CA

#5 Apr 19, 2013
Duh wrote:
If you are going to ask about the capacity of the school district's ability to dpell then you should yourself know how to spell "wasting".
Amazing how so many people will make personal attacks a priority and have hundreds of comments on silly threads created by this Sam person, yet nothing is stated under this story which will impact the fiscal stability of the city, it's ability to hire new employees and increase the total unfunded liability. The mayor stated he wants to hire 19 new police officers. Well I'd like to hear how he plans to pay for them considering how much the PERS contribution is going to increase.
<quoted text>
The taxpaying citizens deserve more police, not vegetable gardens!

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