CalSTRS shows how to cut debt
It turns out public pension debt can be reduced. And the California State Teachers’ Retirement System is showing how. CalPensions reports:
CalSTRS was bracing to report the nation’s biggest pension debt under new government accounting rules that take effect this fiscal year — $167 billion, an amount so huge some thought it might increase the cost of issuing local school bonds.
But a long-sought rate increase approved by the Legislature and signed by Gov. Brown in the nick of time, a week before the current fiscal year began July 1, will allow CalSTRS to report a debt that is shrinking not ballooning.
Last week the CalSTRS board received a preliminary estimate from Milliman actuaries that drops the new debt report by nearly two-thirds to $59.9 billion. That’s less than the current unfunded liability under the old accounting rules, $73.7 billion.
That $59.9 billion still is huge, and must be reduced. But the method is clear: increase the rates for paying into the system. Whether that amount is paid for by the public employees themselves through reduced pay, or by local taxpayers through tax increases, is something to be negotiated among unions, administrators and taxpayers-voters.
But the conclusion is clear: If you give public-employees large pensions, then those pensions have to be paid for one way or another.
Alternatively, the generous pensions can be cut.
It sure also helps to have accurate accounting numbers instead of the guesstimates that have been out there for years.
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Do you know where the money to keep the public pension system afloat is going to come from? Hint: From the ones who never see a pension check arrive in their mailbox or financial accounts during their lifetimes.
This will continue until it can’t anymore. The politicians and judges will protect them for as long as it’s feasibly possible.
Real math never lies. Nor does it sleep. Nor can it be fooled.
At the end of the day real math always wins.
11 Ways You Know You Live In A Country Run By Idiots
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1. If you can get arrested for hunting or fishing without a license, but not for being in the country illegally, you live in a country run by idiots.
2. If you have to get your parents’ permission to go on a field trip or take an aspirin in school, but not to get an abortion, you live in a country run by idiots.
3. If you have to show identification to board an airplane, cash a check, buy liquor or check out a library book, but not to vote on who runs the government, you live in a country run by idiots.
4. If the government wants to ban stable, law-abiding citizens from owning gun magazines with more than ten rounds, but gives 20 F-16 fighter jets to the crazy leaders in Egypt, you live in a country run by idiots.
5. If, in the largest city, you can buy two 16-ounce sodas, but not a 24-ounce soda because 24-ounces of a sugary drink might make you fat, you live in a country run by idiots.
6. If an 80-year-old woman can be stripped searched by the TSA but a woman in a hijab is only subject to having her neck and head searched, you live in a country run by idiots.
7. If your government believes that the best way to eradicate trillions of dollars of debt is to spend trillions more, you live in a country run by idiots.
8. If a seven year old boy can be thrown out of grade school for saying his teacher’s “cute,” but hosting a sexual exploration or diversity class in grade school is perfectly acceptable, you live in a country run by idiots.
9. If hard work and success are met with higher taxes and more government intrusion, while not working is rewarded with EBT cards, WIC checks, Medicaid, subsidized housing and free cell phones, you live in a country run by idiots.
10. If the government’s plan for getting people back to work is to incentivize NOT working, with 99 weeks of unemployment checks and no requirement to prove they applied but can’t find work, you live in a country run by idiots.
11. If being stripped of the ability to defend yourself makes you more “safe” according to the government, you live in a country run by idiots.
http://www.zerohedge.com/news/2014-09-09/11-ways-you-know-you-live-country-run-idiots
Let me add one of my own:
If a government employee can collect more public pension payouts during his retirement years than he accumulated throughout his entire working career, you live in a country run by idiots.
This didn’t reduce the debt at all. Unless tax increases are at hand, all it did was transfer the debt from CalSTRS to the general funds of the paying agencies, who must now incur debt to make the increased payments. Either way the taxpayers are on the hook for all of it.
Heard a soon to retire Ca govt employee,explaining his retirement at 90 percent of his final pay is ok, but he doesn’t t have all the benefits the cops and the firemen have. Man oh man, there are going to be some really missed of people when the shinola hits the fan. I heard of the greatest generation, mister 90 percent is a member of the most hated generation. Payback will be sweet.
Desmond, when a RAGWUS feeder like the 90 percenter you are writing about opens their mouth they do so with no direct knowledge of how the private sector worker that pays for everything feels, they only care that they got away with the loot. I know several $100,000 plus RAGWUS retirees, not one of them cared about watching their spending, and most ended up going BK, even with their huge pensions.
The RAGWUS has twisted how society works, and only in their favor. 🙂
Oh Desmond, you sound like a bitter fool!!! Hey buddy, not only will I get 90 percent but also the other benefits. And I could careless what you think, and bring it on with your payback!!!!!! Your nothing Desmond and you will never amount to anything.
Desmond, when a RAGWUS feeder like the 90 percenter you are writing about opens their mouth they do so with no direct knowledge of how the private sector worker that pays for everything feels,
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Yes Dummy, because not one public employee ever worked in the private sector, and not one has a wife,husband or other family that works in the private sector? You idiot!!
My generation says to the most hated generation, “give me a F……
I don’t know what your generation is Desmond, but get the word out often, because these RAGWUS feeders are not only destroying your future, everyone in the private sector is being raped. Only the RAGWUS feeders are doing well. 🙂
Only the RAGWUS feeders are doing well.
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Well yes I am doing well!!! And I just pulled out 100k in equity from my home refi. I love Cali!
90% after 40 years for me. As promised.
RAGWUS feeders like you is where the problem lies Charles. The premise you jump on about being “promised” is nothing more than a grand scheme to steal from the tax payers their hard earned labor as they retire on less than 20% of their highest income. There is no private sector retirement plan that pays out 90% or more in pension, furthermore, no private pension pays COLA’s, or free medical for life.
You RAGWUS feeders need to look very closely at what Desmond has written for your ability to hide behind that government curtain is coming to an end, and the younger citizens will not be slaves to your greedy nature. 🙂
Duncey– Don’t your kids have gov perks and pensions?
or are you “special”?
There is no private sector retirement plan that pays out 90% or more in pension, furthermore, no private pension pays COLA’s, or free medical .
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Sounds like we need to get private sector unions for all!!!!! Time to stop the corporate pigs from raking in record profits and enjoying the high life while raping the workers!!!
I can’t tell if you’re serious. The private sector can’t afford pensions like that no matter how much people whine about alleged raping of workers.
I’m dead serious bob, the gap between the top earners and the working people has gotten way to wide!! Time to bring EVERYONE down to an even playing field, or somewhat a fair one. The people of this state and Nation agree with me more than any of you DOOMERS!!
Charles of the most hated genertion,
Who hasn t been promised something that did not happen? Don t give me that crap about legal promises. My generation will fix what needs to be fixed.
On line shopping, Uber, who would have thought?
You haven t seen anthing yet.
Who would have thought 20 years ago gay marriage prohibition would be overturned?
A promise to pay… Give me a break. Checks/wires reduced to 45 cents on the dollar. Poof.
Be thankful, the grim reaper isn t the solution.
or by local taxpayers through tax increases..
Ding, ding, ding….you found your answer. The paraticians will bleed the taxpayers white in taxes and debt, guaranteed.
Where I live the average cop makes over 150,000 in pay and bennies and this is unsustainable so guess what is being proposed?
A sales tax increase for “public safety.” This is just one example. The paraticians always go to tax increases after meaningless efforts at reform.
Where I live the average cop makes over 150,000 in pay and bennies –
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They are always hiring, go grab an app you DOOMER!!!!!!!!!!
…Doomers don’t surf….
or do much else constructive…
Reviewing our city teacher contract:
It calls for longevity bonuses totalling $27200 after year 25 through 35.
These are included in the pension base calculation. Does anyone think that is unfunded at the contribution rates?
Does anyone think those kind of pay bumps are pervasive in state and local government?
Real math does not lie. That’s is how you get to be the most hated generation.
Give me a “F”.
Of course, that is what they are saying to my generation.
We will see who gets to say U last.
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Gov. Jerry Brown signed a bill Wednesday in Los Angeles mandating the paid leave that supporters say will guarantee that workers don’t lose their jobs — or their paychecks — if they or a family member gets sick.
Brown told reporters at a downtown news conference that the law is “the least we can do” with a growing income gap dividing America. Supporters say as many as 6.5 million workers — including temporary and part-time employees — will benefit from the law that becomes effective in July.
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Now that’s progress!!!!!!!!