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

Governor Brown – The Bailout King

By Edward Ring
“What a salesman,” he said, mockingly. “I guess that’s what you learned … selling that stock that went south.” – California Governor Brown, to challenger Kashkari, during televised debate Sept. 4th, 2014 (ref. SF Gate) If anyone wants to know what the theme of Governor Brown’s attacks on GOP candidate Neel Kashkari is going to...

TAGS: Governor Jerry Brown, normal pension contribution, pension reform, unfunded pension liabilities

Examining the CalSTRS Shareholder Bailout

By Edward Ring
“CalSTRS has a $70-plus-billion unfunded liability – even with assumed investment earnings that Brown deems ‘highly unlikely’ – and says it needs about $5 billion more a year to regain solvency.” –  Dan Walters column, “Brown budget reflects state’s massive debt,” May 25, 2014, Sacramento Bee Those “investment earnings” that Walters quotes Brown as finding...

TAGS: CalSTRS, CalSTRS unfunded liability, normal pension contribution