California public pension shortfall (tax, price, retiree)

[davidt1]

Originally Posted by V8 Vega

That old line about public sector employees making less money than private sector counterparts hasn't been true for a couple of decades now.

The Stanford University study of CA pension cost provides a sobering reality of the public employee mafia pension system.

The Case for Limited Government is Now Stronger Than Ever | California Policy Center

At the state level, the pension crisis is an excellent example which holds ramifications for the long-term health of state government that equal or exceed Obamacare, Social Security, and Medicare combined.

The result is a massive run up is debt for nearly all state and local public agencies in California. In 2013, the total debt for unfunded pension liabilities was estimated at $950 billion, according to Stanford University. But more recent calculations for 2016, peg the debt at $1.5 trillion 50% higher due to major investment losses and soaring benefit costs.

Public pension debt alone in California is currently estimated to equal $77,000 per household in 2013, according to Stanford University’s pension tracker.

Despite the magnitude of the current pension crisis, there are only a handful of California Legislators who will even publicly admit that the pension crisis is a major issue in California. This is due to the fact that the state’s public employee unions control the California Democratic Party, and the Democrats run the California State Legislature.

Democrat legislators, on the other hand, support the status quo because the public employee unions bankroll their campaigns and the Democratic Party, and most if not all have already signed pledges to the state’s public employee unions to only increase public employee compensation, regardless of the consequences for the state.

The Democrats make pledges to their public employee union masters to keep paying them more and more? How is this even possible or legal? Now you know where your new higher car taxes and gas taxes are really going.

It's getting harder and harder for the public employee mafia pension shills to defend the status quo and still keep a straight face.

[2sleepy]

Originally Posted by davidt1

The Stanford University study of CA pension cost provides a sobering reality of the public employee mafia pension system. The Case for Limited Government is Now Stronger Than Ever | California Policy Center It's getting harder and harder for the public employee mafia pension shills to defend the status quo and still keep a straight face.

It's hard to keep a straight face when you use a source like that one:

The California Public Policy Center (formerly the California Public Policy Center) is a right-wing pressure group based in California. Founded in June 2010, it is a state affiliate of the $83 million right-wing State Policy Network (SPN), a web of state pressure groups that denote themselves as "think tanks" and drive a right-wing agenda in statehouses nationwide.[1] See SPN Members for more.

Although SPN's member organizations claim to be nonpartisan and independent, the Center for Media and Democracy's in-depth investigation, "EXPOSED: The State Policy Network -- The Powerful Right-Wing Network Helping to Hijack State Politics and Government," reveals that SPN and its member think tanks are major drivers of the right-wing, American Legislative Exchange Council (ALEC)-backed corporate agenda in state houses nationwide, with deep ties to the Koch brothers and the national right-wing network of funders.[2]
California Policy Center - SourceWatch

[SportyandMisty]

Originally Posted by chaz40

Also, non-safety members in CalPERS that get a pension are not 3% at 50. They did away with that in 2012 anyways. For those who have it can keep it, but new safety members are 2.7% at 57. Non-safety members are 2% at 62.

Isn't that only for those hired after 2012? That won't affect the pension shortfall for another 35 to 40 years.

[SportyandMisty]

The problem of state pension shortfalls can easily be fixed.

100% of payments to current public sector retirees should come from deductions from currently working public sector employees.

[expatCA]

Originally Posted by SportyandMisty

The problem of state pension shortfalls can easily be fixed.

100% of payments to current public sector retirees should come from deductions from currently working public sector employees.

Yes if they want employer aided retirement they should be paying into Social Security.

[2sleepy]

Originally Posted by SportyandMisty

Isn't that only for those hired after 2012? That won't affect the pension shortfall for another 35 to 40 years.

Non public safety never got 3% and I think if you check you will find that the average length of employment at time of retirement for California public sector employees is 21 or 22 years, not 30 or 40.

[kttam186290]

Originally Posted by phantompilot

Other ways that the unions and politicians conspired and engaged in bribery and the sale of public office was to pass a law exempting public servants from being taxed by CA when they move out of state, whilst imposing this lifetime of taxation on private sector workers. So if you're a public sector employee your deferred income is not taxed by CA if you leave. But if you're a private sector worker it is. That needs to be remedied by being invalidated by a higher court..its blatantly unconstitutional of course.

I am a public employee and CalPERS contributor and I agree with this wholeheartedly.

Nothing aggravates me more than public employees (state, school district, etc.) who blast the tax system in California while also indulging in its largess.

Worse, many of these people end up moving out of state at retirement to avoid paying the same taxes they benefited from their whole lives.

Then, when they move to places like Idaho or Arizona, they vote down minimum wage laws and cost-of living increases for public employees in those states.

That has always struck me as being selfish and unethical, but nevertheless, it goes on frequently.

I think it's high time to start collecting taxes on out-of-state beneficiaries of California public pensions!

[2sleepy]

Originally Posted by kttam186290

I am a public employee and CalPERS contributor and I agree with this wholeheartedly.
Nothing aggravates me more than public employees (state, school district, etc.) who blast the tax system in California while also indulging in its largess.
Worse, many of these people end up moving out of state at retirement to avoid paying the same taxes they benefited from their whole lives.
Then, when they move to places like Idaho or Arizona, they vote down minimum wage laws and cost-of living increases for public employees in those states.
That has always struck me as being selfish and unethical, but nevertheless, it goes on frequently.
I think it's high time to start collecting taxes on out-of-state beneficiaries of California public pensions!

The same law that applies to public employees pensions also affects private pensions:

On Jan. 10, 1996, P.L. 104-95 took effect. This federal law prohibits any state from taxing pension income of non-residents, even if the pension was earned within the state. Before the passage of this law, California, New York and several other states maintained a source tax on pension earned within the state. For example, a California teacher who retired to Nevada would have to continue paying the source tax on her California pension. Thanks to this law, people who earn a pension in California then move out of the state no longer have to pay taxes on these funds to California.
Non-Residents
If you receive a California pension but you are not a resident of California, you may still have to pay taxes on this income to your state of residence or the federal government. Alabama, Alaska, Florida, Mississippi, New Hampshire, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming either do not have a state income tax or do not tax pension income, so your California pension won't be taxed if you live in one of these states. Many other states offer special exclusions for pension income to help retirees save money. Check with your state department of revenue or taxation for more information.
http://finance.zacks.com/california-...rnia-8191.html

Would you also suggest collecting tax on private pensions on out of state recipients that were earned while in California? What if the pensioner moves to a state with a state income tax, should they pay state income tax to that state and California too?

[Finper]

Originally Posted by 2sleepy

It's hard to keep a straight face when you use a source like that one:

The California Public Policy Center (formerly the California Public Policy Center) is a right-wing pressure group based in California. Founded in June 2010, it is a state affiliate of the $83 million right-wing State Policy Network (SPN), a web of state pressure groups that denote themselves as "think tanks" and drive a right-wing agenda in statehouses nationwide.[1] See SPN Members for more.

Although SPN's member organizations claim to be nonpartisan and independent, the Center for Media and Democracy's in-depth investigation, "EXPOSED: The State Policy Network -- The Powerful Right-Wing Network Helping to Hijack State Politics and Government," reveals that SPN and its member think tanks are major drivers of the right-wing, American Legislative Exchange Council (ALEC)-backed corporate agenda in state houses nationwide, with deep ties to the Koch brothers and the national right-wing network of funders.[2]
California Policy Center - SourceWatch

and when you have no answer or defense attack the source...

[StanleysOwl]

Originally Posted by Finper

and when you have no answer or defense attack the source...

The answer is that the source is extremely biased and therefore unreliable. Find corroboration of a balanced nature to make your point.