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Thought a $25.4 billion deficit is the worst news?
"Annual rates paid by some of the 2,000 local government plans in the giant California Public Employees Retirement System could soar roughly 55 percent over the next three years, a CalPERS board member estimates."
Cities that are on the verge of bankruptcy will see a massive increase in a mandated cost. This will put many over the edge.With Prop. 26 in place, the union owned/controlled city councils will not be able to raise taxes or fees.
How did this happen, a needed 55% increase in payments? "The board chose an investment portfolio during the workshop likely to lower the current earnings forecast, 7.75 percent a year, to 7.5 or 7.25 percent.
“If you take the previous 35 percent increase we are going to have because of the loss,” Oliveira said, “dropping the discount rate from 7.75 to 7.5, Kings County would look at a 55 percent increase in employer contributions over the next three years.”
CalPERS will kill California, sooner rather than later.
More...
"Annual rates paid by some of the 2,000 local government plans in the giant California Public Employees Retirement System could soar roughly 55 percent over the next three years, a CalPERS board member estimates."
Cities that are on the verge of bankruptcy will see a massive increase in a mandated cost. This will put many over the edge.With Prop. 26 in place, the union owned/controlled city councils will not be able to raise taxes or fees.
How did this happen, a needed 55% increase in payments? "The board chose an investment portfolio during the workshop likely to lower the current earnings forecast, 7.75 percent a year, to 7.5 or 7.25 percent.
“If you take the previous 35 percent increase we are going to have because of the loss,” Oliveira said, “dropping the discount rate from 7.75 to 7.5, Kings County would look at a 55 percent increase in employer contributions over the next three years.”
CalPERS will kill California, sooner rather than later.
More...