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The California teachers’ pension plan is under funded by more than $24 billion. How do we pay for this?
"One way might be a favorable ruling in a lawsuit demanding that the state live up to its obligation as the legal plan sponsor of the California State Teachers Retirement System, the nation’s second largest public pension fund.
Suing the state was not mentioned last week as the CalSTRS board received a briefing on the legal issues of the funding shortfall from Brian Bartow, the CalSTRS general counsel, and Harvey Leiderman, a pension law expert and veteran litigator.
But a repeated emphasis on the states legal requirement to ensure proper CalSTRS funding, and the boards own fiduciary obligation to protect pensioners, seemed to suggest that suing the state is an option."
If CalSTRS sues and win, it will bring the State into insolvency before the ink is dry on the court decision. Why?
Because the next lawsuit filed will be by CalPERS, which has $525 billion in under funded liabilities. Then you have the UC system pension plan which is currently at $21 billion in unfunded liabilities.
The cost of paying off these debts would take up to one third of all State revenues--killing tens of thousands of State jobs, dozens of programs and force the State to act fiscally responsible.
Actually, this may be a good thing--what do you think? Any wonder businesses are leaving as quickly as possible--so they are not forced to pay to make up the shortfall of these out of control pension systems?
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"One way might be a favorable ruling in a lawsuit demanding that the state live up to its obligation as the legal plan sponsor of the California State Teachers Retirement System, the nation’s second largest public pension fund.
Suing the state was not mentioned last week as the CalSTRS board received a briefing on the legal issues of the funding shortfall from Brian Bartow, the CalSTRS general counsel, and Harvey Leiderman, a pension law expert and veteran litigator.
But a repeated emphasis on the states legal requirement to ensure proper CalSTRS funding, and the boards own fiduciary obligation to protect pensioners, seemed to suggest that suing the state is an option."
If CalSTRS sues and win, it will bring the State into insolvency before the ink is dry on the court decision. Why?
Because the next lawsuit filed will be by CalPERS, which has $525 billion in under funded liabilities. Then you have the UC system pension plan which is currently at $21 billion in unfunded liabilities.
The cost of paying off these debts would take up to one third of all State revenues--killing tens of thousands of State jobs, dozens of programs and force the State to act fiscally responsible.
Actually, this may be a good thing--what do you think? Any wonder businesses are leaving as quickly as possible--so they are not forced to pay to make up the shortfall of these out of control pension systems?
More...