[quote=no_such_reality]We’re probably three or more years away from the final song of the Stockton bankruptcy.
As for inflation being a savior, that’s only true if the inflation occurs AFTER the incoming tsunami or retirees have already retired.
If it starts before, the necessary payments to CalPERS will skyrocket far faster than any revenue increases. And we all know that if inflation is 8%, the rest thing that will be removed in the next contract will be the cap on COLA.[/quote]
I doubt pensions will be cut. If no cut then mini yields will jump for all and COLA will be cut.
For current workers expect more furloughs, pay freezes.
BTW, police and fire unions have implicitly promoted idea that pension should start at 50 because life expectancy is low for safety workers with no proof. I heard that police retirees that number is closer to 80, longer than avg worker. Can anyone find
acturial data to confirm? On other side, urban legend states that half of safety workers retire on disability, making part of retirement tax free.
