By Jim Campbell, Citizen Journalist
Saving CA State and Local Public Pension Funds Could Require an Additional $40 Billion Per Year from Taxpayers
In yesterday’s edition of California News and Views, Stephen Frank discussed the fiscal insolvency of many of these programs. Fortunately for the taxpayer, this will be required to be worked out at the local level as federal law prohibits intervention.
No Photo Shop, pictures taken 25 years ago
This is the type of shoot first, aim later sort of legislation that would be favored by Senator Diane Feinstein, Senator Barbara Boxer, and former House Speaker Nancy Pelosi.
Keep a sharp eye out for this one folks, never underestimate the ability of Feinstein and her cronies on the left to redistribute your wealth.
If CalPRS was honestly run cities would have to contribute billions more each year to bring it to solvency.
“As can be seen in this more realistic, but still very much a best case scenario, if the rate of return for California’s state and local government employee pension funds drops from 7.75% to 6.75%, this will cost taxpayers another $11.3 billion per year. If the return projection drops to 5.75%, it will cost taxpayers another $24.9 billion per year. And if the return projection drops to a still quite aggressive 4.75% per year, it will cost taxpayers an additional $40.8 billion per year.”
No one has accused CalPRS of being honest for years. Were this CIGNA or another private pension system, it would be taken over and the administrators would go to jail.
Corruption has many forms—this is how government produces corruption.
Why Lower Rates of Return Will Destroy Pension Funds
Elizabeth Emken US Senate CA 2012 