California, $1 trillion in unfunded pension liabilities

Posted in the Minneapolis Forum

non-starter

Saint Paul, MN

#2 Jan 12, 2013
But hey, they have an $800 million projected budget surplus this year, until the Democratic supermajority in the state legislature gets a hold of that $800 million. You know you are in trouble as a state when Jerry Brown is the "fiscal conservative" in the government.
Consistent

Minneapolis, MN

#3 Jan 12, 2013
However, like most of the stories you post, there isn't much truth in this one either.
non-starter

Saint Paul, MN

#4 Jan 13, 2013
Consistent wrote:
However, like most of the stories you post, there isn't much truth in this one either.
California Public Pension Fund Earns A Dismal One Percent

http://www.huffingtonpost.com/2012/07/16/cali...

SACRAMENTO, Calif. The nation's largest public pension fund collected a dismal 1 percent annual return on its investments, a figure far short of projections that will likely bring pressure on California's state and local governments to contribute more money, officials said Monday.

The return reported by the California Public Employees' Retirement System was well below its projected return of 7.5 percent for the fiscal year that ended June 30 and is prompting administrators to consider changes to investment strategies.

The investment returns are critical because taxpayers are on the hook for the difference if the pension funds fail to meet their performance targets.

"The last 12 months were a challenging period for all investors," chief investment officer Joe Dear said about the stock market's performance amid the ongoing European debt crisis and slow global economic growth.

The fund, known as CalPERS, runs a $234 billion pension system for more than 1.6 million state employees, school employees and local government workers.

Dwight Stenbakken, deputy executive director of the League of California Cities, said the current system relies too heavily on earnings. When stocks, bonds, real estate and other pension investments don't reach targets, the difference has to be made up by taxpayers.

Dear said the CalPERS returns would result in increased contributions from the state, school districts and municipalities, most of which are already financially stressed.

He said the fund's long-term 7.5 percent target remains realistic but noted that recent returns have been the lowest in a generation. For the past five years, CalPERS earned just 0.1 percent. Over 20 years, it collected 7.73 percent.

California taxpayers are already on the hook for billions of dollars in pension and health care benefits promised to public workers when they retire. The current unfunded liability for CalPERS is around $85 billion and the California State Teachers' Retirement System is short by about $64.5 billion. This doesn't include county and city pension obligations, which have hundreds of billions of unfunded pension liabilities.

State spending on pensions has been on the rise. The latest budget includes $3.5 billion in pension contributions, nearly the amount the state spends to run its court system, from trial courts to the state Supreme Court.

Local governments, which have been cutting back police and fire services, have seen their pension burdens increase even faster.

The problem has been most evident in Stockton, which filed for Chapter 9 protection on June 28. The Northern California city of nearly 300,000 people became the largest American city ever to declare bankruptcy.

Its unfunded liability for those benefits is $417 million.

San Bernardino, a city of 210,000 people some 60 miles east of Los Angeles, is also contemplating bankruptcy in the face of a $45 million budget shortfall. While city officials blame weak tax revenues and a loss of redevelopment funds, they also cite escalating pension costs as a contributing factor.

"You just can't rely on these optimistic assumptions that somehow the investment returns are going to be so great that you don't have to worry about paying for this stuff," San Jose Mayor Chuck Reed said in an interview.

San Jose, the nation's 10th-largest city, overwhelmingly approved a ballot measure pushed by Reed in June to roll back municipal retirement benefits for current and future employees.

Lawmakers are refusing the governor's call for a defined contribution plan that places some of the risk on employees.

Calpers and California State Teachers unfunded pension liabilities top $150 Billion by themselves.
Amused Slew

Seattle, WA

#6 Jan 13, 2013
I like "pretend" points, so what other state have problems in your bushwhacker's economy ??? Poor non-sense, remember when you admitted bush F'ed up the economy, now you pretend it never happened ??? LMAOTROTFU ~! Good "joke" ??
Insistent

Grantsburg, WI

#7 Jan 13, 2013
Amused Slew wrote:
I like "pretend" points, so what other state have problems in your bushwhacker's economy ??? Poor non-sense, remember when you admitted bush F'ed up the economy, now you pretend it never happened ??? LMAOTROTFU ~! Good "joke" ??
Retard,

Did you have a comment on the Thread or just your usual "Notice me Slewsie" Playground Activities?
Slews Theme Song

Minneapolis, MN

#9 Jan 13, 2013
Amused Slew wrote:
I like "pretend" points, so what other state have problems in your bushwhacker's economy ??? Poor non-sense, remember when you admitted bush F'ed up the economy, now you pretend it never happened ??? LMAOTROTFU ~! Good "joke" ??
Another Saturday night and I ain't got nobody
I got no money cuz I got no job
How I wish I had someone to talk to
I'm in awful mess
I blew in town 40 years ago, I ain't seen a lotta girls since then
If I could find'em I could get'em but as yet I have'nt met'em
That's why I'm in the shape I'm in ohhhh

Another Saturday night and I ain't got nobody
I got no money cuz I got no job
How I wish I had someone to talk to
I'm in awful mess
Another fella told me he had a sister that looked so fine
Instead of being my deliverance, she had a strong resemblance
To a cat named Frankenstein ohhhh....

Another Saturday night and I ain't got nobody
I got no money cuz I got no job
How I wish I had someone to talk to
I'm in awful mess
It's hard for a fella, when he don't know his way around
If I can't find me a honey to help me spend her money
I'm gonna have to blow this town ohhh....

Another Saturday night and I ain't got nobody
I got no money cuz I got no job
How I wish I had someone to talk to
Im in awful mess
Consistent

Minneapolis, MN

#10 Jan 13, 2013
Insistent wrote:
<quoted text>
Retard,
Did you have a comment on the Thread or just your usual "Notice me Slewsie" Playground Activities?
So aside from being a racist and a bigot you also discriminate against the mentally handicapped by calling others "retards"?

Figures. You really are a despicable excuse for a human being.
Consistent

Minneapolis, MN

#11 Jan 13, 2013
non-starter wrote:
But hey, they have an $800 million projected budget surplus this year, until the Democratic supermajority in the state legislature gets a hold of that $800 million. You know you are in trouble as a state when Jerry Brown is the "fiscal conservative" in the government.
I notice that your original post got deleted by Topix.

Perhaps you should try posting factual non offensive material - that doesn't get deleted.
Insistent

Grantsburg, WI

#12 Jan 13, 2013
Consistent wrote:
<quoted text>
So aside from being a racist and a bigot you also discriminate against the mentally handicapped by calling others "retards"?
Figures. You really are a despicable excuse for a human being.
Retard,

Use that Computer that "they" allow you to access and read the definition of "Retard"

I am being generous to you when I call you Retarded.

I could be honest and assign the awful truth about why you are so stupid, but instead generously allow that factors outside your Diseased Mind may be responsible for your stupidity.

You should learn to be grateful!
Consistent

Minneapolis, MN

#14 Jan 13, 2013
Insistent wrote:
<quoted text>
Retard,
Use that Computer that "they" allow you to access and read the definition of "Retard"
I am being generous to you when I call you Retarded.
I could be honest and assign the awful truth about why you are so stupid, but instead generously allow that factors outside your Diseased Mind may be responsible for your stupidity.
You should learn to be grateful!
So aside from being a racist and a bigot you also discriminate against the mentally handicapped by calling others "retards"?

Figures. You really are a despicable excuse for a human being.
Not From Iowa

Saint Paul, MN

#15 Jan 13, 2013
California is also the world's 8th largest economy.

California is also a "giver" state. They pay $1.20something in federal taxes for every $1 they receive in federal revenue. They help support dysfunctional states like Mississippi and the whole blue belt.

Here's an idea, let the blue states pay their own bills for a few years and Calif will be flush.

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