Union Controlled Illinois Politicians Consider Tax Increases to Fund Pensions
Union Controlled Illinois Politicians Consider Tax Increases to Fund Pensions
Editor’s Note: This post by regular UnionWatch contributor Mike Shedlock documents the latest bad news for the Illinois Teachers Retirement System. And of course, union-controlled Illinois politicians have a solution: More taxes in one of the most overtaxed states in America. Like many if not most pension reformers, Shedlock advocates a scrapping of defined benefit...
By Mike Shedlock
New Accounting Rules Will Double CalSTRS Reported Unfunded Liability
New Accounting Rules Will Double CalSTRS Reported Unfunded Liability
It’s been said that after Al Capone was sentenced to prison for tax evasion in 1931, his chief financial and legal advisor, Jake “Greasy Thumb” Guzik, told other mobsters how to avoid Big Al’s fate. They must keep two sets of books. One set, that could be made public, would show “honest income” from a...
By Jon Coupal
Ten Fallacies Used To Justify Opulent Government Pensions
Ten Fallacies Used To Justify Opulent Government Pensions
There are many implicit rationalizations justifying paying generous government pensions. Here are my nominations for the top ten bogus excuses: 1. “Public employees deserve high pensions because of their low pay.” FALSE. Perhaps true at one time, but not anymore. In many instances, today’s government employees are earning 10%-30% more than their true private sector...
By Richard Rider
Vallejo Faces 2nd Bankruptcy Because They Didn’t Restructure Pensions
Vallejo Faces 2nd Bankruptcy Because They Didn’t Restructure Pensions
Editor’s Note: An article published today in the Stockton Record’s reports “Deis: City won’t tackle pension reform.” Bob Deis is Stockton’s city manager. Apparently he doesn’t want Stockton to be the first to fall. As soon as one city restructures their pensions, every city and county in California will follow, because the alternative is a...
By Mike Shedlock
Orange County Pensions At Risk – Unions Just Call Critics “Extremists”
Orange County Pensions At Risk – Unions Just Call Critics “Extremists”
“Just as the overseer of Detroit lied to the public about Detroit’s unfunded pension liability, these extremists are likewise lying to the taxpayers of Orange County, and they’re following his playbook.” – Jennifer Muir, Communications Director, Orange County Employees Association We’re not lying, Jennifer. We’re not even stretching the truth. What government union spokesperson Muir...
By Edward Ring
Saving Pensions Will Require Unions To Face Reality
Saving Pensions Will Require Unions To Face Reality
“Not surprisingly, within moments of news of Detroit’s bankruptcy, pension scare mongers took to their pedestals to place all the blame on pensions. California, Los Angeles, and other governments would surely follow Detroit’s footsteps in short order, they cried. It’s simply not true, like most of the claims made by the anti-pension soldiers who have...
By Edward Ring
California’s Public Sector Union Pension Secrecy Lobby
California’s Public Sector Union Pension Secrecy Lobby
Last month, the California Public Employees’ Retirement System (CalPERS) announced that it would post the names and pension amounts of its retirees. But after the Retired Public Employees Association of California (RPEA) objected, CalPERS quickly pulled back from this pledge. RPEA leaders made what amounted to a novel and troubling argument about why vital public...
By Steven Greenhut
Public pension data belongs to the public
Public pension data belongs to the public
What goes up must come down. That’s precisely what happened – in record-setting time – when the California Public Employees Retirement System, the state employees’ pension agency, attempted to provide to the public information about its retirees’ pensions and making it accessible to the public on the CalPERS’ website. The need for pension reform has...
By Private: Gloria Romero
California Unions Target Prop. 13 Rather Than Reform Pensions
California Unions Target Prop. 13 Rather Than Reform Pensions
DATELINE CHICAGO: Mayor warns property taxes could be going up 150%. Suppose the mayor of your city announced a property tax hike of 150% or, stated another way, two-and-a-half times your current tax. A homeowner accustomed to paying $2,000, would see their next bill increase to $5,000, while a bill of $4,000 would jump to...
By Jon Coupal
California Pension Reformers Plan New State Ballot Initiative
California Pension Reformers Plan New State Ballot Initiative
A statewide constitutional initiative planned for 2014 would tackle the biggest obstacle to meaningful pension reform: vested benefits. Right now, with certain exceptions, California municipalities may not reduce pension benefits for current employees—unlike in the private sector, where employers can change the terms of employees’ current pension plans, making them less generous. The courts have...
By Steven Greenhut
New Actuarial Rules Will Force States to Admit Pension Problems
New Actuarial Rules Will Force States to Admit Pension Problems
Editor’s Note: This post by UnionWatch contributor Mike Shedlock covers familiar territory. Our parent organization, the California Public Policy Center, has published detailed analyses of the new GASB and Moody’s rules, including: “Moody’s Final Adopted Adjustments of Government Pension Data,” “How New Rules from Moody’s and GASB Affect the Financial Reporting of Pensions in Seven...
By Mike Shedlock
Adjustable Pension Plans
Adjustable Pension Plans
Professor Barnhardt: “So it was only when your world was threatened with destruction that you became what you are now?” Klaatu: “Yes.” Professor Barnhardt: “Well that’s where we are. You say we’re on the brink of destruction and you’re right. But it’s only on the brink that people find the will to change. Only at the precipice...
By Edward Ring
CalPERS Pension System in the Crosshairs of Stockton Bankruptcy Dispute
CalPERS Pension System in the Crosshairs of Stockton Bankruptcy Dispute
A few days ago a federal judge sided with the city of Stockton, validating its bankruptcy. See Judge Rules Stockton CA Bankruptcy is Valid, City Acted in Good Faith. Bondholders screamed, but the ruling made sense. What did not make sense (except from the point of view of politicians protecting their own undeserved pensions), was...
By Mike Shedlock
California’s Public Employment Relations Board Thwarts Pension Reform
California’s Public Employment Relations Board Thwarts Pension Reform
When it comes to state government, most people think of the governor and the members of the Legislature, those who are elected by the voters and do their business under the Capitol dome. However, there is an entire class of faceless, unelected appointees to the state’s hundreds of boards and commission who determine whether or...
By Jon Coupal