Pension Question

[TBulger]

I'm sure everyone is aware about the Sheriff of Ventura Country suing for an additional 75k he is entitled to. My question is if the state fund is 500 billion short and some of the cities like SBC is barely paying in, wouldn't it stand to reason that beyond the first retires getting paid handsomely, where will the money come from to pay people into the future. I don't know why the pension control people aren't screaming about the the first receivers getting up to 50-75% maybe more than they should and not worried about the rest of the employees getting anything? What am I missing?

 

[mjc]

We the tax payers will have to make up the difference

 

[TBulger]

We the tax payers will have to make up the difference

I don't have 500 billion on me.

Then why haven't we done it, it's owed?

 

[snafu]

I'm sure everyone is aware about the Sheriff of Ventura Country suing for an additional 75k he is entitled to. My question is if the state fund is 500 billion short and some of the cities like SBC is barely paying in, wouldn't it stand to reason that beyond the first retires getting paid handsomely, where will the money come from to pay people into the future. I don't know why the pension control people aren't screaming about the the first receivers getting up to 50-75% maybe more than they should and not worried about the rest of the employees getting anything? What am I missing?

Just a couple of comments

The County of Ventura is a "37 act" county meaning they have their own retirement system. The county of Ventura is not part of CalPERS and therefore has no impact on the state retirement system. Retirees receive their pension from the county.

As far as the young paying for the old, the state has up the retirement formula to 2%@57 for new hires and they will be contributing a larger percentage of they salary. For safety units in the CalPERS system the employee contributes 9%. With pension reform I believe it was to go to 15% in the future. The employer contributions will also be going higher. CalPERS return 16% on their investments last year.

First retirees paid handsomely? When I started the formula was [email protected] after 30 years they received 60% of their highest based salary at age with a max 2% COLA. So yes they are a bit above the 47k national average for baby boomer retirees but also keep in mind that they most do not receive SS or its very minimal.

 

[snafu]

I don't have 500 billion on me.

Then why haven't we done it, it's owed?

Good question.

Pension funds are rarely fully funded at any time. In the early 90s the state pension fund was "super funded" and the state allowed cities to take a "pension holiday" ( no employers contributions ) the cities then spent the monies like drunken sailors and when the employer contributions started up again the cities were not prepared for that and the proceeding increases, and have never caught back up.

 

[wishiknew]

I have a VESTED pension from a UNION that I will never see maybe you can get some of that