Stanford Professor Joe Nation Talks Pension Crisis –The TRILLION $$ Disaster

Did you know that California has at least a one trillion unfunded pension liability?  Did you know that nationally, it is over $3 trillion?  Are you aware that the city of Oroville, in order to pay CalPERS forced their cops to take a ten percent pay cut (not a typo)?  Over the next five years CalPERS is demanding a doubling of its mandatory contributions—San Diego schools had to fire about 200 teachers—no money for them AND CalPERS.

“The nation’s largest public pension system, CalPERS, is short by as much as $1 trillion by some estimates, though unrealistic investment projections conceal the true extent of the problem. But the lower the projected rate of return, the more cities and counties — and their taxpayers — are forced to foot the bill. That puts everyone in a seemingly untenable position.”

We are in a disaster and Sacramento is silent.  Guv Brown has done nothing and it is when he leaves office that CalPERS could collapse—then he will blame the new Governor and Republicans for his failures.

Money

Stanford Professor Joe Nation Talks Pension Crisis

California County News, 10/4/2017

The noose is tightening around California’s cities and counties. At least one-third of local and state budgets now go toward public employee pensions. And that number is expected to climb much higher, putting a number of municipalities at risk of bankruptcy.

Public pensions are “the albatross around the necks of cities and counties,” Stanford Professor of Public Policy Joe Nation told attendees at a university workshop on public retirement last month. “Unless we do something the system may not survive.”

The nation’s largest public pension system, CalPERS, is short by as much as $1 trillion by some estimates, though unrealistic investment projections conceal the true extent of the problem. But the lower the projected rate of return, the more cities and counties — and their taxpayers — are forced to foot the bill. That puts everyone in a seemingly untenable position.

CBS San Francisco reporter Melissa Griffin recently sat down with Joe Nation to discuss the issue further.

“This is absolutely the most challenging issue facing state and local government, not just in California but across the country,” Nation told her. No one is safe. No municipality should feel comfortable with the retirement system the way things are.

Nation talked about the need for leadership from both the state legislature and the public employees unions. He also discussed some of the legal aspects, including the fate of the so-called ‘California rule.’

Watch the interview here.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.