by John Howard 11/25/09 12:00 AM PST
California's Public Employees' Retirement System may need government employers to foot a larger share of its bill in 2011, a move that would stress state and local budgets at a time when they already face deep cuts. The 1.6 million-member public pension fund, the largest in the country, is expected to require additional money to help it recover from recession-fueled investment losses. But just how much and when have yet to be determined.
Submitted by: Jim Wagner
1 comment:
"Under the plan, the pension fund’s investment losses would be amortized and paid off over a fixed 30-year period, reported CalPensions, a blog that specializes in government pensions. If the economy and financial markets recover over the next few years, as many experts expect, the impact on future local government and school employer rates would be moderated."
This pension system needs to be updated to conform with the rest of the working world: 1)major shared employee contribution, and 2) a stock market "no guarantee" clause.
State and Municipal salaries actually look competitive with private employers, even better in many instances. Why then pile-on these huge lifetime pensions for the public to pay. How much does your employer or union contribute to your pension for your lifetime? What ever that "average" is seem like a more reasonable policy for the people of this State.
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