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With the stroke of a pen, California Gov. Gray Davis signed legislation that gave prison guards, park rangers, Cal State professors and other state employees the kind of retirement security normally reserved for the wealthy.
More than 200,000 civil servants became eligible to retire at 55 — and in many cases collect more than half their highest salary for life. California Highway Patrol officers could retire at 50 and receive as much as 90% of their peak pay for as long as they lived.
Proponents sold the measure in 1999 with the promise that it would impose no new costs on California taxpayers. The state employees’ pension fund, they said, would grow fast enough to pay the bill in full.
They were off — by billions of dollars — and taxpayers will bear the consequences for decades to come.
This year, state employee pensions will cost taxpayers $5.4 billion, according to the Department of Finance. That’s more than the state will spend on environmental protection, fighting wildfires and the emergency response to the drought combined.
And it’s more than 30 times what the state paid for retirement benefits in 2000, before the effects of the new pension law, SB 400, had kicked in, according to data from the California Public Employees’ Retirement System.
Cities, counties and school districts across California are in the same financial vise. After state workers won richer retirement benefits, unions representing teachers, police, firefighters and other local employees demanded similar benefits, and got them in many cases.
Today, the difference between what all California government agencies have set aside for pensions and what they will eventually owe amounts to $241 billion, according to the state controller.
Public employees also have the right to expect what was promised as part of their employment compensation! Don't provide pensions and see the labor pool dry up.
At some point we'll be paying people to do nothing as there will be no money for anything to actually work with. Things like materials. Cops will be on foot.
According to the liberals, the state is doing fantastic. It might be doing well decently in short-term but over the long-term it is all doom and gloom for California.
I have to envy the culture of rainbows and unicorns though in California. The whole state seems to be drinking Kool-Aid. I go there every couple of months and the impression I get is Californians are deluded into thinking the temporary economic boom will be permanent and this time is different and they will never have an economic down-cycle again.
They don't even know how big of a pension shortfall they have as they use wildly optimistic numbers on annual returns.
According, this article assuming unrealistic returns the state has a 450 billion in unfunded liabilities.
This is a fantastic article on how they predict 7.5 to 8 percent returns for ever, which is extremely unrealistic.
It is interesting how California has a 9.3% income tax rate plus 0.9 percen SDI tax for a total California income tax of 10.2% starting at $52,000.
South Dakota on the other hand has no unfunded pension liabilities and no state income tax.
Odd how California confiscates 10.2% of income above $52,000 and yet has all hundreds of billions in unfunded pension liabilities and how South Dakota which has zero income tax has zero unfunded pension liability.
I also did some research and the jobs report shows that out of 63,000 new California jobs, that 33,600 were either government workers or education and health sector which is heavily subsidized by the government
Public employees also have the right to expect what was promised as part of their employment compensation! Don't provide pensions and see the labor pool dry up.
Sure they have the right to expect things but that doesn't mean that they will get them. Here's an idea:Fire them and give those jobs to "immigrants". Problem solved.
There are attacks on public safety pensions every year in California...
At age 50 a policeman could have done 29 years...is that long enough getting beat up physically and emotionally?
You want a fifty plus year old patrol officer responding to a shooting in progress 27 floors up
While Im in great shape it isnt possible.. and the little departments in podunk wherever that have old officers suffer the consequences.. sure.. investigations.. intelligence.. Ok.. but no front line position
According to the liberals, the state is doing fantastic. It might be doing well decently in short-term but over the long-term it is all doom and gloom for California.
I have to envy the culture of rainbows and unicorns though in California. The whole state seems to be drinking Kool-Aid. I go there every couple of months and the impression I get is Californians are deluded into thinking the temporary economic boom will be permanent and this time is different and they will never have an economic down-cycle again.
They don't even know how big of a pension shortfall they have as they use wildly optimistic numbers on annual returns.
According, this article assuming unrealistic returns the state has a 450 billion in unfunded liabilities.
This is a fantastic article on how they predict 7.5 to 8 percent returns for ever, which is extremely unrealistic.
It is interesting how California has a 9.3% income tax rate plus 0.9 percen SDI tax for a total California income tax of 10.2% starting at $52,000.
South Dakota on the other hand has no unfunded pension liabilities and no state income tax.
Odd how California confiscates 10.2% of income above $52,000 and yet has all hundreds of billions in unfunded pension liabilities and how South Dakota which has zero income tax has zero unfunded pension liability.
I also did some research and the jobs report shows that out of 63,000 new California jobs, that 33,600 were either government workers or education and health sector which is heavily subsidized by the government
Underfunded pensions have nothing to do with liberal or conservative, it's about poor budgeting. Kentucky and Alaska also have large pension liabilities, conservative issue? Nice cherry pick with South Dakota, Texas unfunded pension liability is the same as CA by the way.
Last edited by Goodnight; 09-18-2016 at 04:37 PM..
Public employees also have the right to expect what was promised as part of their employment compensation! Don't provide pensions and see the labor pool dry up.
Public labor pool dry up, that is one for the books.
Public employees also have the right to expect what was promised as part of their employment compensation! Don't provide pensions and see the labor pool dry up.
Then these people should have to work until 62 or 70, like the government wants the rest of us to do. Retiring at 50-55 is a waste of time and money.
Quote:
Originally Posted by Goinback2011
Just move out of CA. Let the remaining Leftists pay for all of this BS.
Most likely they would cry to the government and viola, $$$ start pouring in!
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