The CalPERS chief actuary says pension costs are “unsustainable,” and the giant public employee pension system plans to meet with stakeholders to discuss the issue.
Translation: CalPERS, which has suffered near-catastrophic losses due to the market decline and their own ineptitude, plans to “smooth” rate increases to 1,500 local government agencies. Ya, that should go over well. In California, public pension benefits must be fully funded, so if CalPERS screws up, as they most certainly have, other public entities must make up the difference. Thus, CalsPERS has no incentive to act responsibly. Their past announcements about the shortfall have been a remarkable mix of arrogance and lethargy, but now there’s a hint of panic in the air.
Dwight Stenbakken of the League of California Cities told the seminar that pension benefits are “just unsustainable” in their current form and difficult to defend politically.
“I think it’s incumbent upon labor and management to get together and solve this problem before it gets on the ballot,” he said.
Goodness, we can’t have the public getting involved, can we? Oh the horror. Sorry, am I being snarky? Well, the California public pension system has been a snoozy, clubby little greedfest for too long, with no one doing anything about their obvious and massive problems. It needs be on the ballot.
Pension Tsumani has continuing coverage of the ongoing pension debt meltdown.