Politicians keep looking for an easy way to address pensions but that path was closed a decade ago when the state chose not to lower investment return assumptions to reasonable levels and boost Normal Cost contributions. It was easy then but because Unfunded Liabilities compound at high rates, the balances due now are huge and growing. The only paths that seriously move the needle are boosted taxes, reduced services, or reduced future pension benefits for current employees and retirees. The first two paths have already been trod with three tax increases since 2009 and reduced shares of the budget for universities, courts, parks and social services. The third path has not even been approached. Current employees and retirees benefitted from keeping Normal Cost unfairly low. It’s time for them to share in the pain being suffered by citizens.Yea, and it's a shame it has to come to this. A LOT OF PEOPLE will be impoverished.
Sunday, May 28, 2017
California Cover Up–Billions to Prop Up Collapsing Pension System
How do they think this is all going to end?