CalPERS retirees soon to surpass workers
by John Seiler | December 5, 2014 6:31 am
Outgoing San Jose Mayor Chuck Reed[1], 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[2]:
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[3] 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.
- Chuck Reed: http://www.institutionalinvestor.com/article/3394205/investors-pensions/pensions-play-a-key-role-in-san-jose-mayoral-election.html
- Calpensions.com: http://calpensions.com/2014/11/24/calpers-retirees-outnumber-active-workers-soon/
- report last week: http://www.calpers.ca.gov/eip-docs/about/committee-meetings/agendas/financeadmin/201411/item7a-01.pdf
Source URL: https://calwatchdog.com/2014/12/05/calpers-retirees-soon-to-surpass-workers/