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
Illegal employees are legal ambiguity
Katy Grimes: As a former employer, I hired illegal immigrants – not deliberately, or knowingly, but because fraudulent identification was
Gut and amend time
“Laws are like sausages. You should never see them made,” is a variant on a saying by Otto von Bismarck.
Note on deleted posts
Feb. 6, 2013 By John Seiler, Managing Editor An imposter poster going by “Hermit of Livery” long has been banned