Longevity hurting CalPERS

The California Public Employees Retirement System has a new problem: retirees are living longer. That means their pension payouts continue longer than was planned for. Reported AP:

SACRAMENTO, Calif. (AP) — Gov. Jerry Brown on Wednesday urged California’s largest public pension fund to act quickly to address rising costs caused by retirees’ longer life expectancies, saying failure to do so would widen the fund’s liabilities by billions of dollars.

In a letter sent to the board of the California Public Employees’ Retirement System, he urged members to acknowledge the demographic changes immediately and phase in the costs over three years rather than waiting two years, as CalPERS’ staff recommends….

The pension fund is $45 billion in the red and will grow by $9 billion because of retirees living longer, the letter said. New projections show the life expectancy of retirees growing as much as two years.

That means taxpayer also are on the hook for the extra money.

But the problem may take care of itself. Before they end up on Medicare at 65, some of these employees will sign up for Obamacare — which has a tendency to kill patients.

The public-employee unions that pushed for the pension spiking 15 years ago also were big supporters of Obama, Obamacare and socialized medicine in general. So they have no one to blame but themselves for this problem — and its solution by the grim reaper.

60 comments

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  1. Ted Steele, CEO
    Ted Steele, CEO 7 February, 2014, 14:46

    280 Billion and rising! We’re doooooomed!

    What, we have to adjust? Oh no we’re dooooooomed!

    Reply this comment
  2. Donkey
    Donkey 7 February, 2014, 15:40

    If the Brown had any sense he would seek the repeal of SB400, which is one of the major causes of underfunding. The truth is that anyone associated with government employ at the city, county, or state level deserve nothing more than the average household income across the state for 40 years of work. The clowns making claim to $100,000 a year plus pensions never created anything, 99% of all government employ is nothing but highly paid welfare with a title.

    I have no doubt the youngsters will fix this problem for themselves, too bad the RAGWUS feeders of today are so greedy, having no honor, integrity, or morals to reduce their stealing to an honest level that will benefit everyone. The RAGWUS feeders act as Gollum, very telling. 🙂

    Reply this comment
  3. billyBS
    billyBS 7 February, 2014, 16:37

    I like Ted’s approach. Ignore the alleged funding shortfalls. It will work itself out. It’s all good. “Bang on the drum all day.”

    Reply this comment
    • Ted Steele, CEO
      Ted Steele, CEO 7 February, 2014, 21:33

      Hey Billy Bub– The bank just called they say your mortgage is due now in full!

      Oh ….wait……..you have a contract that prevents the bank from forcing you to pay the unfunded liability!

      LMAO!!!!

      Reply this comment
      • Donkey
        Donkey 8 February, 2014, 08:17

        This is why you look so dimwitted when you post TCS, you fail to take into account the cost of the $100,000 plus pensions that are quickly coming due, and their COLA’s and medical to boot. It will not be more than 5 to ten years and that $270 billion you are so proud of will be 1/3rd of your dream. It wont be long before CALPERS has over a million RAGWUS feeders at its door TCS, and the taxpayers have had enough of your scam. 🙂

        Reply this comment
        • Ted Steele, CEO
          Ted Steele, CEO 8 February, 2014, 09:50

          Yes Duncey— We will all live forever and run out of money very soon!!!! There is no way to predict this and prepare for it!!!! We’re doomed!

          Please tell the other P.O.R.K.E.R.’s and L.G.M.O.S. that we need fresh air in the bunkers little buddy!!!

          Hurry—- post right away!!!!!!!!!!!

          Reply this comment
  4. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 February, 2014, 17:36

    I like Ted’s approach. Ignore the alleged funding shortfalls.
    =
    Teddy is the sharpest tool in the shed William.

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 7 February, 2014, 20:17

    Great….all we need this week is doomers agreeing with fair and balanced posters……keep up the good work.

    Reply this comment
  6. Ted Steele, CEO
    Ted Steele, CEO 7 February, 2014, 21:34

    Hey — John!

    We need more “trolling for trolls” stories like this one asap!

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 7 February, 2014, 22:22

    Teddy….if all else goes wrong……there are three truths inescapable for doomer Californians…..Death,taxes and government worker pensions.

    Reply this comment
  8. billyBS
    billyBS 8 February, 2014, 09:51

    If the money runs out, what is the problem? The result of that sounds fun with some challenge. Retirees wandering the streets. What is wrong with that? Suvival of the fittest. Ban on the drum all day till then.

    Reply this comment
  9. LetitCollapse
    LetitCollapse 8 February, 2014, 10:37

    Remember when CalPERS plopped a load into real estate just prior to the 2008 meltdown and lost their shorts? Insanity is doing the same thing over and over again and expecting different outcomes. lol. Now the CalPERS brain stems are doubling down on small to mid-sized start-up companies with poor credit ratings that need cash. No joke. lol. They are doing this at a time when the stock market is in bubble mode as a result of bailout and money printing economics, not based on corp earnings or GDP growth which has been dismal. How could the nation be in better shape economically when the # of food stamp recipients (47M) is practically as high now as it was at the peak of the meltdown?

    CalPERS is being forced to make these exotic investments because fixed investments aren’t returning squat due to ZIRP. So, just like during the real estate bubble, the fund is pushed into making exotic investments to grow at a rate to stay solvent. Japan is on life-support and has been for 20 years. China is slowing down, as is the rest of the developing world. And CalPERS is doing it again. Leaning into a left hook! lol. Stupid is as stupid does.

    The US has been boxed into a corner economically with a $17t federal debt with no end to huge deficit spending in sight. If economic stagnation continues and interest rates remain low, deficit spending continues only adding to the national debt. Once interest rates normalize (6-8%), voluntarily or involuntarily, the debt will be so outstanding that 1/3 to 1/2 of the Federal budget will go exclusively to service the interest debt. Unsustainable. That’s the breaking point. The only response is cutting massive amounts of spending that will throw us into a depression or to hyperinflate the currency that will destroy your buying power.

    I only hope it happens so that those responsible for the next meltdown take a direct hit. It just wouldn’t be morally right to force the kids to pay for their sins.

    Reply this comment
    • Rex the Wonder Dog!
      Rex the Wonder Dog! 8 February, 2014, 15:31

      Remember when CalPERS plopped a load into real estate just prior to the 20b08 meltdown and lost their shorts?

      CalTURDS lost $72 BILLION in 2008, and they lost $130 BILLION from 2008-2014 in lost interest. They are down $202 BILLION, in straight income since 2008, non-compounded.

      They would be at $482 BILLION if Teddy’s $280 billion is correct. Actually more like $600+ billion with compounding of interest and principle.

      Reply this comment
  10. billyBS
    billyBS 8 February, 2014, 11:49

    Let it collapse, I don t know when it is going to happen, but I agree with you. The good and bad of it is I am certain that the powers that be(does not make any difference which party) have seen the scenarios, the fallout, and the probable steps to avoid chaos)preserve the power elite), devaluations, new curency, whatever.
    If some want to think that is doomsday talk, more power to them. My Mom and Dad both lived through the great depression, did not believe that it could not happen again, and also were worried that Germany in the 30’s, and the resulting govt could repeat itself anywhere(yes the good old USA). They were staunch Roosevelt/Kennedy Democrat pedigree, suspicious of labor unions(they were really familiar with the private sector model), but well aware the they served their purpose well in their time..grandfather was coal miner who benefitted from John Lewis/United Mine Workers. Their work conditions were a bit worse than the public sector counterpart today, just a wee bit.

    Reply this comment
    • LetitCollapse
      LetitCollapse 8 February, 2014, 12:24

      billy, it would not surprise me at all to see an international currency replace the dollar, the pound, the ruble, the yuan, the euro, the yen and other common currencies when things began to fall apart. Any crack in the global armour today rapidly spreads internationally. Japan is certainly on life support and has been for 2 decades. You can imagine the economic domino effect worldwide if Japan got sucked into an economic black hole. And you are right. The oligarchs understand the seriousness and inevitability of the situation and are now in the can kicking phase to buy time to arrange for an orderly transfer of power. A planned breakdown is much preferred over one that takes the oligarchs by surprise. Essentially, we are talking a significant devaluation of buying power for the average consumer as the poor get poorer while the rich maintain their wealth and increase their control. Such a transition would not be without lots of social unrest. You’d have to be blind not to see the preparations in the US – primarily the strengthening of the police state. There’s a reason for everything.

      Reply this comment
      • Ted Steele, CEO
        Ted Steele, CEO 8 February, 2014, 13:23

        Collapso— Please clean up your own rant spittle!

        Reply this comment
        • LetitCollapse
          LetitCollapse 8 February, 2014, 14:24

          I stick to the news unless I’m distracted by board bullies who draw us away from the subject matter and provoke us into fights. It’s puerile and reflects a real lack of maturity. Behavior I would expect from people who were picked on in their formative years and gain psychological satisfaction by doing it to others as they grow older physically but not emotionally. Very sad. No wonder people like that are drawn to occupations that assign them authority over others.

          Reply this comment
    • Ted Steele, CEO
      Ted Steele, CEO 8 February, 2014, 13:22

      Hey Billy! Your mortgage is due today in full!

      LOL

      Oh wait– you have a contract that prevents that!

      Reply this comment
  11. BillyBS
    BillyBS 8 February, 2014, 14:11

    Paying off all existing debt and avoiding any new debt is a prudent philosophy in any scenario.

    Reply this comment
    • LetitCollapse
      LetitCollapse 8 February, 2014, 14:57

      billy, the mortgage-pension analogy is totally flawed and those who use it apparently don’t understand how either work.

      With a typical mortgage the loan holder pays down the debt over a fixed period of time.

      That’s not how pensions work. If one is going to compare the pension system to a mortgage it would be like being delinquent on your P&I payments by 1x-2x your total annual income and then hoping that your gambling winnings will eventually pay back what you owe, plus make you current on your future payments. lol.

      So don’t buy the analogy. It’s flawed and inaccurate. Comparing apples and oranges to confuse you.

      Reply this comment
      • Rex the Wonder Dog!
        Rex the Wonder Dog! 8 February, 2014, 15:37

        Actually the mortgage-pension analogy would be like Teddy Steals having a job at McDonalds and buying a $40 million home, with P&I payments of $1 million a month and him on Day #1 saying he can “pay it off over time” when he won’t be able to make the very first payment in 30 days.

        Teddy can make that idiotic claim for 30 days, then he gets destroyed. That is what he is basically doing with CalTURDS, except the 30 days will take a few years to materialize. Teddy can make the claim CalTURDS is funded until it goes sideways, which is just a few years off.

        Reply this comment
        • Ted Steele, CEO
          Ted Steele, CEO 8 February, 2014, 16:02

          Oh come on now doomers— you can do better than those last two posts–just saying the analogy is bad does very little for your position little buddies!–try again—-

          Type now!

          Reply this comment
        • Donkey
          Donkey 8 February, 2014, 20:47

          TCS has no clue of the landslide that the Boomers are bringing in the next five years to Calpers. When you have one million RAGWUS feeders drawing anywhere from $75,000 to $150,000 a year you will eating out of a trashbin really quick.

          Stupidity isn’t your only quality TCS, greed is a big part of your character too. 🙂

          Reply this comment
          • Ted Steele, CEO
            Ted Steele, CEO 8 February, 2014, 22:19

            Duncey– Same ol drivel tonight?

            Thought so….Zzzzzzzzzzzzzzzzz

        • Donkey
          Donkey 12 February, 2014, 13:10

          Dance my little RAGWUS feeding parrot, Dance!! Al will cleanse your TCS, although it will be a cold cleansing!! 🙂

          Reply this comment
  12. Ulysses Uhaul
    Ulysses Uhaul 9 February, 2014, 00:25

    Pensions are negotiated between labor and management. General taxes are available for guaranteed funding of pensions. Fair and balanced truisms. Why dribble on…end of story…forever!

    Reply this comment
    • Ted Steele, CEO
      Ted Steele, CEO 9 February, 2014, 06:30

      Well said!

      Reply this comment
    • LetitCollapse
      LetitCollapse 9 February, 2014, 13:02

      No, pensions are negotiated between the equivalent of Frankenstein and Dracula, who negotiate their own very large slices of the pie first, giving whatever is left over of the pie to the public workers in exchange for their money and their votes, and then send the ordinary taxpayers with no one seated at the bargaining table the bill for the entire pie.

      That’s the way your system has been devised. Since you are a beneficiary, you approve of the flim-flam.

      Reply this comment
  13. Ulysses Uhaul
    Ulysses Uhaul 9 February, 2014, 08:52

    Teddy.

    They retort with untruths in voluminous tirades and criticize the good word from the fair and balanced well intentioned posters….
    a typical trick of Saul Alinsky….the ultimate community organizer of fanatics.

    I know the hate rants will start, but pensions are guaranteed for government workers; the naysayers would take baby rattles away from innocent infants, if they could sell them back for a buck!

    Reply this comment
    • Donkey
      Donkey 9 February, 2014, 10:14

      It seems that LSD was your choice of recreational activity UU. The Soviet Union were also guaranteed pensions, didn’t work out so well for them, and it will be the same for you. No matter how much the RAGWUS tries to boiler plate your pensions in the end the money will not be there, and cuts will be very deep. 🙂

      Reply this comment
      • Ted Steele, CEO
        Ted Steele, CEO 9 February, 2014, 11:01

        Why the personal attacks little Duncey?

        Come on now you know better! Or has the S.Q.U.I.D.W.I.D. overtaken your senses?????

        Reply this comment
        • Rex the Wonder Dog!
          Rex the Wonder Dog! 9 February, 2014, 13:51

          Donk.

          They retort with untruths in voluminous tirades and criticize the good word from the fair and balanced well intentioned posters…. a typical trick of Saul Alinsky….the ultimate community organizer of fanatics.

          🙂

          Reply this comment
        • Donkey
          Donkey 9 February, 2014, 15:24

          Rex I know!! These RAGWUS feeders are the laziest most greedy freaks that a nation has to put up with, but they are in every generation, using their conniving, sneaky ways to bolster their crooked ways. The typical RAGWUS feeder produces nothing but BS paperwork that in most cases is used to chase down a few more dollars from some hard working private sector taxpayer, and the higher up the more they make but the less they do, with no accountability at all. 🙂

          Reply this comment
          • Ted Steele, CEO
            Ted Steele, CEO 9 February, 2014, 16:44

            Duncey–and Poodle Girl!

            The Raqwus isn’t the problem, it’s the S.Q.U.I.D.W.I.D. and the P.O.R.K.E.R.S. that will tea bag us in the end! You girls need to hunker down in the Bunker ™ and gird up your rant spittle —-it’s gonna be a hard rain a fallen little buddies!

            And please try to post something new– ANYthing new!

          • Donkey
            Donkey 9 February, 2014, 18:27

            My dancing misogynist sidekick again seeks to demean women. Based on his cut and paste patterns he has made an attempt to go it alone but alas a failed pursuit indeed.

            What a sad little man TCS paints himself. When the RAGWUS falls he will be lost, having no skills to survive on his own, please Mr. Oblamy save my sidekick, his dancing shoes have worn thin!! LOL 🙂

          • Ted Steele, CEO
            Ted Steele, CEO 9 February, 2014, 18:44

            Duncey– the S.Q.U.I.D.W.I.D. and the P.O.R.K.E.R.S. know that you do indeed need to hunker down in the bunker with your tin foil pals!

            You go girl!

          • Donkey
            Donkey 9 February, 2014, 21:30

            Dance my little parrot sidekick, Al needs your flamboyant feathers in his face, thaw the Great Lakes TCS, shake those feathers TCS, only you have the power to thaw the planet!! 🙂

          • Ted Steele, CEO
            Ted Steele, CEO 10 February, 2014, 08:52

            Duncey!

            YOU have the power to thaw the planet! Thats the point little buddy!

          • Rex the Wonder Dog!
            Rex the Wonder Dog! 10 February, 2014, 08:56

            What are S.Q.U.I.D.W.I.D. and the P.O.R.K.E.R.S?

          • Ted Steele, CEO
            Ted Steele, CEO 10 February, 2014, 08:59

            SQWIDWID !!!!

          • Donkey
            Donkey 11 February, 2014, 10:24

            NO TCS, Al gave your the power my tutu wearing little dancing parrot!! 🙂

          • Donkey
            Donkey 11 February, 2014, 10:25

            Just keep on Dancing little Chaz Steals, Dance!!! 🙂

  14. Ulysses Uhaul
    Ulysses Uhaul 9 February, 2014, 19:10

    Poodle and Donkey are old school Alinsky types bashing others who are inspirational and dead on correct on issues. They play in the sand box with that misinformed newbie on the block who believes debating content is the purpose of CWD….Pity…..rehabilitation of wayward doomers is the most important….. sorta like missionary work.

    Reply this comment

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