Tweet
If a private insurance company did not have enough reserves, the government would close it down and sell it off.
But, government pension plans are allowed to have $525 billion in unfunded liabilities. CalPers is even worse. It knows it needs $700 million, immediately, to pretend it is solvent.
Now it has decided NOT to demand the money. "Facing political fire, the state's largest public pension fund Wednesday retreated for a month from a plan to approve a $700-million increase in taxpayer contributions it gets from the state and about 1,000 school districts.
State Treasurer Bill Lockyer, a member of the California Public Employees' Retirement System board, said the fund needs to assess the consequences of the huge hike on California at a time when the state faces an estimated $19-billion budget deficit."
Here is the Sophie's Choice of the day: We can either have a mostly bankrupt pension system or higher taxes.
Right now we are choosing both! This is why California will be in a Great Depression for a generation.
More...
But, government pension plans are allowed to have $525 billion in unfunded liabilities. CalPers is even worse. It knows it needs $700 million, immediately, to pretend it is solvent.
Now it has decided NOT to demand the money. "Facing political fire, the state's largest public pension fund Wednesday retreated for a month from a plan to approve a $700-million increase in taxpayer contributions it gets from the state and about 1,000 school districts.
State Treasurer Bill Lockyer, a member of the California Public Employees' Retirement System board, said the fund needs to assess the consequences of the huge hike on California at a time when the state faces an estimated $19-billion budget deficit."
Here is the Sophie's Choice of the day: We can either have a mostly bankrupt pension system or higher taxes.
Right now we are choosing both! This is why California will be in a Great Depression for a generation.
More...