[quote=The-Shoveler]I am wondering if this takes into account making CalPers Whole?
The City of L.A. is claiming a balanced budget as well At least they made the future hires retire a SS retirement age (67) instead of 55 and eliminated Pension spiking.
I wonder if the pension no-spiking rule can be retroactive.
Anyway it’s a start, I just have my doubts, sounds too good to be true.[/quote]
What shows up in the headlines and what does not,
I Imagine it is much the same for the state finances, well at least we are not going further in the hole right !
Stanford’s study also estimated that each of the city’s three independent pension funds is unfunded by billions of dollars: the city of Los Angeles Fire and Police Pension System is $9.25 billion unfunded; the Los Angeles City Employees’ Retirement System is $11.32 billion unfunded; and the city of Los Angeles Water and Power Employees’ Retirement System is $6.59 billion unfunded.
“In 1999, Los Angeles City’s aggregate annual required contributions for its three systems totaled $291 million, rising to $923 million in 2011, an annual average growth rate of 11.1 percent,” according to the Stanford report.
But here is the kicker: The growth in pension spending by the city “outpaced that of spending on public protection, which grew at 5.2 percent, on health and sanitation (3.6 percent), and on recreation and cultural services (5.8 percent), and it occurred while spending on public assistance programs fell by an average of 3.0 percent per year.”
If the trend continues, the city will be little more than a professional retirement payment and processing service.
