CalPERS Set to Have MASSIVE Increase—Cities Forced to Raise Taxes/Cut Services
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For years CalPERS has been lying about the return on investment. For many years they claimed it was 7.75%–regardless of how low the returns were. Then, when the outrage got too much, they claimed it was 7.5%. Now, once again caught lying, it is officially, 6.5%–regardless of the facts. Actually, every tenth of a percent under 7.75% adds to the unfunded liability. This, even though CalPERS has mandated a 50% additional contribution. That is money taken from basic services, lower pay and taken from employees (lowering their take home pay)
Based on Federal accounting criteria, CalPERS has over $754 billion in unfunded liabilities. The new lowering by one percent of the estimated return on investment is a massive increase in mandatory contributions from cities and employees—and a big cut in basic services. CalPERS is killing off local government.
“There is opposition to the strategy, as Alameda Interim City Manager Liz Warmerdam described the idea of greater pension costs as being “devastating on our bottom line.” She also echoed old criticisms in the way CalPERS works with agencies, saying “We have very little input. Whatever they want to do, local governments have to sit here and deal with it. It’s extremely frustrating.”
Related article: California Cities Support a More Conservative CalPERS
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Stephen Frank
Stephen Frank: Is the the publisher and editor of the California Political News and Views. Mr. Frank speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows and is a full time political consultant. http://capoliticalnews.com/
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I am a retiree from Cal PERS. I started working for the second largest school district in the nation when I was 17. Other than my military requirement, I worked for them until retirement. I haven’t double dipped, I haven’t received an income from retirement that exceeds my working income. That said, it is my opinion that CalPERS is unsustainable if there aren’t any changes in the formula for new employee’s.
That is all that Ventura Taxpayers Association wanted and a liberal judge denied a vote from the people on that issue. This wouldn’t have been likely to happen if it weren’t for the incestuous relationship between the public service unions and Ventura County Supervisors. Keep this in mind when County Supervisors are up for reelection.