How Fraudulently Low “Normal Contributions” Wreak Havoc on Civic Finances

By Edward Ring
Back in 2013 the City of Irvine had an unfunded pension liability of $91 million and cash reserves of $61 million. The unfunded pension liability was being paid off over 30 years with interest charged on the unpaid balance at a rate of 7.5% per year. Irvine’s cash reserves were conservatively invested and earned interest...

TAGS: CalPERS, normal contribution, normal pension contribution, pension reform

California's Pension Contribution Shortfall At Least $15 Billion per Year

By Edward Ring
“Pension-change advocates failed to find funding for a measure during the depths of the 2008 recession and the havoc it wreaked on government budgets, so they won’t pass (a measure) when the economy is doing well.” –  Steve Maviglio, political consultant and union coalition spokesperson, Sacramento Bee, January 18, 2016 It’s hard to argue with...

TAGS: CalPERS, CalSTRS, normal contribution, pension fund contributions, pension fund solvency, unfunded contribution

The Amazing, Obscure, Complicated and Gigantic Pension Loophole

By Edward Ring
“The bottom line is that claiming the unfunded liability cost as part of an officer’s compensation is grossly and deliberately misleading.” – LAPPL Board of Directors on 08/07/2014, in their post “Misuse of statistics behind erroneous LA police officer salary claims.” This assertion, one that is widely held among representatives of public employees, lies at the...

TAGS: normal contribution, pension funds, pension reform, PEPRA, Public Employee Pension Reform Act, unfunded contribution