Average full-career CalPERS pension worth 20% more than average Californian’s salary

vcialis 40mg arial,sans-serif;”>California’s full-career retirees received an average CalPERS pension worth 20 percent more than the average Californian’s salary, according to just-released 2014 pension payout data from TransparentCalifornia.com. Full-career safety retirees took home an average pension worth 59 percent more than the average salary.

The over 600,000 records — obtained through a series of public records requests to the California Public Employees’ Retirement System (CalPERS) ­— reveals the average pension for full-career miscellaneous retirees, which includes all non-safety employees, and safety retirees was $65,148 and $85,724, respectively.

By contrast, the average full-time California worker earned $53,890 last year, according to the Bureau of Labor and Statistics.

The 2014 report contained 19,728 recipients receiving a monthly CalPERS check of $8,333.34 or more — representing an annualized benefit of at least $100,000 — a nearly 35% increase from 2012’s report.

The top three 2014 CalPERS pension payouts went to:

  1. Michael D Johnson, former Solano County administrator: $375,990,
  2. Joaquin Fuster, UCLA retiree: $325,278, and
  3. Donald Gerth, former Cal State at Sacramento president: $305,002.

Retirees from local agencies — cities, towns, special districts, etc. — earned significantly more than state retirees:

Average 2014 full-career CalPERS pension by employer type

“Average full-career pensions that significantly exceed the wages of most full-time workers shatters the myth that CalPERS only provides a modest level of retirement income,” said Robert Fellner research director for Transparent California.

Fellner said that such exorbitant benefits are the reason pension contributions are skyrocketing, “Retirement costs are directly related to the generosity of the benefits promised and, unfortunately, taxpayers are now being required to pay an equally exorbitant sum to help fund them.”

Sacramento Valley

The 3 largest CalPERS payouts to Sacramento Valley retirees went to:

  1. James T Eastman Jr, Sacramento Metropolitan Fire District retiree: $288,503,
  2. Robert J Mcdonell, Woodland City retiree: $243,020, and
  3. James R Shetler, former assistant general manager of the Sacramento Municipal Utility District: $226,542.

Average full-career pension for Sacramento Valley employers

Fellner noted that the median contribution for the largest Sacramento Valley agencies — 23 percent for miscellaneous and 37 percent for safety employees — is significantly higher than the 6.3 percent that private employers pay for their employees’ retirement benefits, according to the Bureau of Labor and Statistics.

Fellner warned that, “As high as the current rates are, CalPERS is projecting significant rate hikes over the next few years, which threatens to break already cash-strapped municipalities. What’s worse, weakening market conditions means rates will rise even further than anticipated.”

Statewide

The top 10 CalPERS agencies with the highest average pensions are displayed below, along with the current employer contribution rate and the median 2013 earnings for full-time, year-round workers of the respective area:

10 largest average full-career non-safety CalPERS pensions by employer

10 largest average full-career safety CalPERS pensions by employer

A full-career for miscellaneous retirees is defined as at least 35 years of service, the minimum required to qualify for Social Security benefits without penalty, while a full-career for safety employees is defined as 30 years or more.

Despite accounting for only 11 percent of service retirees, it is necessary to look at full-career pensions to accurately gauge the system, according to Fellner.

“Just as one assumes a 40-hour work week when comparing salaries, any discussion of pensions implicitly assumes a full-career.

“Furthermore, the disproportionally greater pensions for those who work a full-career reveal an inequitywithin CalPERS. Part of the generosity of the full-career benefits comes at the expense of partial-career retirees, who receive disproportionally smaller benefits.”

Fellner concluded, “With retirement costs expanding to as much as ten times what private employers are paying, maintaining the status quo is extremely irresponsible. It’s particularly indefensible to force taxpayers to bear the entire cost for the recklessness of union-backed officials who gambled on sky-high investment returns, lost, and now expect taxpayers to bail them out.”

To view the entire dataset in a searchable and downloadable format, visit TransparentCalifornia.com.

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Transparent California is California’s largest and most comprehensive database of public sector compensation and is a project the Nevada Policy Research Institute, a nonpartisan, free-market think tank. Learn more at TransparentCalifornia.com.

 

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