CalPERS retirees soon to surpass workers
Outgoing San Jose Mayor Chuck Reed, the Democratic pension reformer, has a great joke. He says that, soon, his city will have a single employee; whose only job will be to mail pension checks to retirees.
CalPERS is gettin’ there.
Reports Calpensions.com:
In a few years CalPERS retirees are expected to outnumber active workers, a national trend among public pension funds that makes them more vulnerable to big employer rate increases.
A mature pension fund for a growing number of retirees becomes much larger than the payroll. So if the pension fund has investment losses, an employer rate increase to help fill the hole takes a bigger bite from the payroll.
The growing number of retirees, partly due to aging babyboomers, is one reason a staff report last week argues that CalPERS has too much “risk” and should consider a number of options during a board workshop early next year.
The “employer” stuck with the “rate increase,” of course, is the California taxpayer.
Those who haven’t left.
Related Articles
Pressure building on Napolitano over dubious UC testimony
Pressure is building on University of California President Janet Napolitano after the San Francisco Chronicle obtained two batches of official
Kamala Harris let Filner escape without 'sex offender' designation
Anger over a criminal-justice system in which the affluent and well- connected seem much more able to avoid severe consequences
Judicial Watch “Ten Most Wanted Corrupt Politicians” for 2012
Jan. 3, 2013 By Katy Grimes It’s always interesting to see which politicians make the Judicial Watch Ten Most Wanted
