Funding Pensions for Unionized Government Workers – It's Never Enough
Funding Pensions for Unionized Government Workers – It's Never Enough
Editor’s Note: Here’s another government pension horror story coming from Chicago. If you think it can’t happen here, think again. California’s political system, state and local, is just as dominated by government unions as Illinois. At least in Illinois, Governor Rauner is using every legal and political weapon he can possibly muster to fight these unions....
By Jon Coupal
California's Pensions Are An Economic Burden, Not Benefit
California's Pensions Are An Economic Burden, Not Benefit
Last month an article entitled “Pensions as Economic Stimulus” was posted to Fox & Hounds Daily. The author, Charles Beckwith, is a former CalPERS senior financial manager. Beckwith’s article, while thoughtful, invites a response. Because California’s pension systems may stimulate the economy in some ways, but equally significant ways, they are killing the economy. Beckwith’s primary...
By Edward Ring
Median Total Compensation for Redwood City Firefighters – At Least $226,365
Median Total Compensation for Redwood City Firefighters – At Least $226,365
Back in February 2014 the California Policy Center publicly announced the Transparent California website, developed in partnership with the Nevada Policy Research Institute. An article covering this announcement was posted on the Forbes Magazine website, entitled “Hundreds Of California Government Employees Are Paid Over $400,000 A Year,” which a review of 2013 Transparent California data...
By Edward Ring
Aggregate U.S. Pension Data Shows Grim Outlook
Aggregate U.S. Pension Data Shows Grim Outlook
Editor’s Note: This analysis by economics blogger Mike Shedlock clearly shows why government employee pensions are taking an awful risk by continuing to forecast annual investment returns of 7.0% or more per year. In his first chart Shedlock points out how between 2008 and 2014 the aggregate value of state and local government worker pension...
By Mike Shedlock
CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Retirement Income
CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Retirement Income
Author’s Note: The original title of this post was “CalSTRS CEO Jack Ehnes Recommends 50% Increase to CalSTRS Pension Benefits.” That was inaccurate. What Ehne’s specifically recommended per the quote immediately below this note was “income replacement of 80 percent to 90 percent to maintain a similar lifestyle in retirement,” in reference to his assertion that...
By Edward Ring
Government Union Assault on Taxpayers Continues in California
Government Union Assault on Taxpayers Continues in California
Editor’s Note: This article discusses multiple proposals to raise taxes that are making the rounds in California’s government union controlled state legislature. Two in particular are mentioned, Senate Constitutional Amendment 5 that takes Prop 13 protections away from business owners, and Assembly Constitutional Amendment 4 that lowers the two-thirds vote requirement for local tax increases. On top...
By Jon Coupal
What Happens When Public Unions Control Everything for Decades?
What Happens When Public Unions Control Everything for Decades?
Editor’s Note: California and Illinois have a lot in common. Both have diverse, resilient economies, both are large states with most of the population concentrated in urban areas, and both have been controlled for decades by public sector unions. The crucial difference, of course, is that at least in Illinois, there is a reform minded...
By Mike Shedlock
CalPERS Spends $50 Million on Investment Advisors, Underperforms Market by 67%
CalPERS Spends $50 Million on Investment Advisors, Underperforms Market by 67%
The California Public Employees’ Retirement System (CalPERS) spent nearly $50M on their investment advisors in 2014, despite producing a dismal 2.4% investment return – 67% lower than what the market returned over the same time, as measured by the S&P 500. CalPERS’ 275 investment officers and portfolio managers cost taxpayers $49.27 million, with chief investment...
By Robert Fellner
Why Pension Reform is Inevitable, and How Reforms Can Benefit the Economy
Why Pension Reform is Inevitable, and How Reforms Can Benefit the Economy
“The six-year bull market is admittedly long in the tooth.” CalSTRS Chief Investment Officer Chris Ailman, Sacramento Bee, July 17, 2015 If what Mr. Ailman really means is equity investments may not be turning in double digit returns any more, that makes the recent performance of CalSTRS and CalPERS all the more troubling. Because according...
By Edward Ring
San Ramon Fire Protection District Pay and Governance Exemplifies Union Power
San Ramon Fire Protection District Pay and Governance Exemplifies Union Power
In a democracy, the assumption is that civilians exercise the ultimate authority over their government. The citizens elect representatives who will act in the public interest. But what happens when government agencies are disbursed over thousands of jurisdictions, and the people who run these local agencies are virtually unknown? Even citizens who follow politics and vote diligently...
By Edward Ring
University of California Hikes Tuition to Fund Soaring Pensions of up to $350,000 a Year
University of California Hikes Tuition to Fund Soaring Pensions of up to $350,000 a Year
The University of California (UC) is implementing major changes to their retirement system to address its $12.1 billion unfunded liability, which has been cited as the driving factor behind recent tuition hikes. The proposed changes include a cap on pension benefits and the possibility of offering a 401(k) defined contribution plan to new hires. Looking...
By Robert Fellner
Strike by Santa Clara County Workers Averted
Strike by Santa Clara County Workers Averted
Everyone should breathe a sigh of relief. Or should they? Santa Clara County’s nurses, librarians, janitors, dispatchers, and assorted other workers belonging to SEIU Local 521 will not be going on strike after all. At least not yet. Late night negotiations have produced a deal that’s being sent back to the members. The exact terms of...
By Edward Ring
Over 8,000 LA County Retirees Made at Least $100K in Pension Pay as Taxpayer Cost Soars
Over 8,000 LA County Retirees Made at Least $100K in Pension Pay as Taxpayer Cost Soars
Last year, 8,088 retirees in the Los Angeles County Employees’ Retirement Association (LACERA) received yearly pension and medical benefits packages worth at least $100,000, a more than 11% increase from the previous year, according to Transparent California’s recently published 2014 pension data. At the same time, the employer’s annual required contribution – the cost borne by taxpayers...
By Robert Fellner
Public Sector Union Reform Requires Mutual Empathy
Public Sector Union Reform Requires Mutual Empathy
Sorry but you would all be crying like a little b**** if the cops and firefighters that earn every penny they get in retirement were not there when your perfect make believe world falls apart so shut the f*** up. Until you do the job you have no idea what you are talking about. –...
By Edward Ring