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Like the rest of us, the California government pension plans lost money in 2008-9. The total? Over $100 billion.
On top of that is the amount being spent by the systems to retirees. "According to CalPERS' financial reports, the total benefits paid to retired civil servants were $4.4 billion in 1998. In 2008, it hit $10.8 billion, and the state expects the bill to continue rising by another billion dollars or more each year.
CalSTRS' figures are similar. Retired teachers' pensions cost $3.1 billion in 1998, and $7.7 billion in 2008, according to the fund's latest Comprehensive Annual Financial Report.
The markets haven't helped, but even without the jerkiness of the S&P 500, $11 billion in additional costs each year is an enormous burden."
If you thought the current budget crisis is bad, it is really nothing. Wait till you see the costs to government agencies when premiums to the State pension system skyrocket.
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On top of that is the amount being spent by the systems to retirees. "According to CalPERS' financial reports, the total benefits paid to retired civil servants were $4.4 billion in 1998. In 2008, it hit $10.8 billion, and the state expects the bill to continue rising by another billion dollars or more each year.
CalSTRS' figures are similar. Retired teachers' pensions cost $3.1 billion in 1998, and $7.7 billion in 2008, according to the fund's latest Comprehensive Annual Financial Report.
The markets haven't helped, but even without the jerkiness of the S&P 500, $11 billion in additional costs each year is an enormous burden."
If you thought the current budget crisis is bad, it is really nothing. Wait till you see the costs to government agencies when premiums to the State pension system skyrocket.
More...