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The City of Los Angeles has a deficit of over $400 million dollars--but it still owns dozens of parking lots.
Now we know how bad off the pension plan is, it has $6 billion in unfunded liabilities.
"In reviewing LACERS Revised Actuarial Valuations that revised the June 30, 2009 statistics to reflect the liability associated with the City’s current ERIP, Total Future Benefits increased by $355 million ($148,000 per participant) without any increase in assets. This increased the total Unfunded Liability, based on the market value of the assets, to $6 billion, representing an underfunding of 42.4%.
One of the consequences of the ERIP is that the annual LACERS payroll is decreased by about 10%. This, in turn, will require higher contributions by the City as a percentage of the payroll. The Unfunded Liability is now 3.3 times payroll compared to 2.8 times prior to the ERIP and the Unfunded Liability for each of the 30,000 Active Members will increase to almost $200,000."
By 2015, LA will be spending 30% of its revenues just on pensions--this will create chaos. We are about to see economic disaster throughout California and the pension costs are central to the problem.
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Now we know how bad off the pension plan is, it has $6 billion in unfunded liabilities.
"In reviewing LACERS Revised Actuarial Valuations that revised the June 30, 2009 statistics to reflect the liability associated with the City’s current ERIP, Total Future Benefits increased by $355 million ($148,000 per participant) without any increase in assets. This increased the total Unfunded Liability, based on the market value of the assets, to $6 billion, representing an underfunding of 42.4%.
One of the consequences of the ERIP is that the annual LACERS payroll is decreased by about 10%. This, in turn, will require higher contributions by the City as a percentage of the payroll. The Unfunded Liability is now 3.3 times payroll compared to 2.8 times prior to the ERIP and the Unfunded Liability for each of the 30,000 Active Members will increase to almost $200,000."
By 2015, LA will be spending 30% of its revenues just on pensions--this will create chaos. We are about to see economic disaster throughout California and the pension costs are central to the problem.
More...