Public Pensions & California Insolvency Pt 1

OC Supervisor John Moorlach discusses the retroactive pension benefit increases for Sheriff's Deputies created an overnight massive debt for Orange County who had gone bankrupt in 1994 and now is in peril again. He cites that CALPERS the State Employee Pension agency is comprised of 2/3rds public employee union representatives. Instead of investing in bonds and equities, they opted for higher benefits by supporting the retroactive raise to 3 percent at age 50 retirement age. The County has filed a lawsuit that Superior Court Judge wanted rid of, so an Appeal was filed and it is expected that the State Supreme Court will eventually address.

Category:

News & Politics

Tags:

• Public Pension
• Benefits
• Orange County
• fiscal crisis
• bankruptcy
• public employee unions

[verysmartdude]

OCERS has to project into the future so the unfunded liablity would be if every County employee worked 30 years and collected a pension, there may be a problem. It's like buying a new house and you put 10 percent down, you can still make the payments easily but your bank account would have to funded to be able to pay the house off in full. Only 10 percent retire, OCERS still has to fund as all of them make a 30 year career, that were the unfunded liability comes from it's not really there.

[verysmartdude]

OCERS has to project into the future so the unfunded liablity would be if every State employee worked 30 years and collected a pension, there may be a problem. It's like buying a new house and you put 10 percent down, you can still make the payments easily but your bank account would have to funded to be able to pay the house off in full. Only 10 percent retire, OCERS still has to fund as all of them make a 30 year career, that were the unfunded liability comes from, it's not really there.