[quote=moneymaker]Ok so maybe not a favorite topic right now.[/quote]
FWIW IMHO we are in a lull before the “perfect” storm given an article/study geared toward bond investors which mentioned there are some big ticket items kept off balance sheet
[quote] “…Rising pension costs mean the percentage of general fund dollars cities pay to the California Public Employees’ Retirement System will have doubled by fiscal year 2024-25, according to the Retirement System Sustainability Study the league released Thursday.
…The study,… doesn’t include data on retiree healthcare benefits, often called other post-employment benefits, or OPEB…”
My own take on the article/study is there is nothing to prevent more self inflected damage,… or said another way, major problem(s) are caused by politicians and the people that run the bureaucratic system because they are unable to think critically about real world problems (like basic finance)
For example in San Diego for three decades plus, the public pension portfolio custodians (i.e. politicians) have allowed giving away (off balance sheet) a 13th pension payment
Compounding this basic middle school math “error” is public employ leadership (i.e. public pension recipients) who see no problem w/ not requiring fully funding the portfolio (basically this seems akin to only paying a “minimum credit card payment” but happens on a SUPER SIZED scale!!!)
So is it no wonder the “pension debt grows” AND given the “California rule” which implies the tax payers are the designated financial backstop for this whole mess (w/ serious knock on effects)
