“I think expanding Social Security benefits is incredibly important… the current Social Security benefits are not covering the cost of living for seniors.” – Shenna Bellows, Democrat, candidate for U.S. Senate, Maine, as quoted in Fiscal Times article “Liberal Dems’ New Goal: Boost Social Security Benefits,” The debate over what role, if any, government should...
On May 6, 2008, the Vallejo City Council voted 7-0 to file for Chapter 9 bankruptcy. At the time it was the largest city in California to do so. In March of 2009 I noted Judge Rules Vallejo Can Void Union Contracts. Vallejo foolishly refused to do so, and I predicted it would soon be back...
Two people walked into a bank, somewhere in California. Both individuals needed to prepare financially for their retirement. Both of them earned about $80,000 per year. The first individual, Mr. Jones, was presented by the banker with a contract called “Social Security.” The contract read as follows: For as long as you work, you will...
I just read a recent commentary that described the following as the best definition of the California Rule that the writer had ever seen: “By entering public service an employee obtains a vested contractual right to earn a pension on terms substantially equivalent to those then offered to the employee.” In other words, one has...
“Pew’s relationship with the Arnold Foundation does not pass the smell test,” said Meredith Williams, Denver-based executive director of the National Council on Teacher Retirement. – “Pension Funds Press Pew to Cut Arnold Foundation,” Philanthropy Today, March 4, 2014 If you’re looking for an example of how, increasingly, political debate in America is framed as...
“401Ks carry no guarantee, and that’s the distinction between a defined contribution system and a defined benefit system.” – Rick Shimmel, executive director of the Ventura County Deputy Sheriffs’ Association, February 20, 2014, Fox News Soundbite Truer words were never spoken, Mr. Shimmel. But when the “guarantee” can’t be lowered to levels that are merely...
Is it possible that the California Legislature is finally coming to grips with the public employee pension crisis? We certainly hope so. For years, our political leadership has behaved more like ostriches with their heads buried in the sand regarding the many billions of dollars of “unfunded liabilities” in California’s pension funds. Unlike most retirement...
The economy is picking up steam. State, city and county employees have willingly accepted millions upon millions of dollars in cuts to their pensions. California’s largest pension fund has recouped every single investment penny it lost from the Great Recession. So I thought perhaps California police officers, teachers, firefighters, and other public employees could finally exhale....
Editor’s Note: As the author points out in the report to follow, this may just be the tip of the iceberg. For more on what public employee retirement disability fraud could be costing Californians, please refer to our 2011 California Public Policy Center study “The Impact of Tax Exempt Disability Pensions.” In what I believe...
Detroit’s emergency manager Kevyn Orr says a pension fund takeover is a “right, if not an obligation” after Orr learned of extra, unwarranted pension payments. Please consider Emergency Manager Weighs Pension-Fund Takeover. Kevyn Orr said in a recent interview that at the current pace, the city’s General Services System pension fund could lose its ability to...
Now that a federal judge in Michigan has properly ruled pension obligations are not sacrosanct (see Lesson for Union Dinosaurs) the spotlight is once again on union dinosaurs in California. Bankrupt San Bernardino foolishly did not attempt to shed pension obligations in bankruptcy, but perhaps it can now reconsider. What about Stockton and Vallejo? On April...
Numerous cities have filed for bankruptcy in recent years, and many more cities are on the brink. The reason is untenable union wages, and more importantly untenable pension promises. Sampling of Bankruptcy News Vallejo, California March 2009: Judge Rules Vallejo Can Void Union Contracts Los Angeles, California January 2010: Mayor of Los Angeles Says “Bankruptcy is Not...
Shame on You! I am appalled to see your “quick facts” focus almost exclusively on public pensions. This is not the stuff of an independent, non-profit think tank. It is clear to me that you are pursuing an “agenda includes opposing … health-care and climate-change regulations, reducing union protections and minimum wages, cutting taxes and...
Add Desert Hot Springs, CA to the list of California cities in dire straits due to poor management, union wages, and ridiculously unaffordable pension promises. Please consider Another U.S. city mulls bankruptcy due to soaring wages and pensions A resort town in California warned on Tuesday that it will run out of money by March due...