More agencies scrambling out of CalPERS

18 Sep

Here’s another interesting article I found regarding cities/agencies leaving CalPERS, from the Sacramento Bee:

http://www.sacbee.com/news/politics-government/the-state-worker/article172960601.html

“Trinity County Waterworks District No. 1 west of Redding and Niland Sanitary District from Imperial County are in line to become the third and fourth government agencies to break with CalPERS over the past 12 months in a manner that shortchanges their retirees.”

“shortchanges their retirees”?  No, I think, maybe the employees expected to get something for nothing, and that’s always a risky proposition.  These deals were cut behind the taxpayers’ backs – pensioneers can take it up with their labor negotiators, their city managers, their CalPERS board, but shouldn’t look at me.

“Trinity Waterworks is not in financial trouble, its district manager said. It voted to leave CalPERS in 2015 as it shifted its business model to one that relied on a contractor, meaning it did not have new public employees.

It has set aside money for CalPERS, but it does not have the full amount the pension fund wants.”

Trinity was wise to get out – CalPERS gambles funds on the market, in high risk investments. When an agency opts out, if they pay their liability, they are put in a “low-risk fund.”

“To fully fund their workers’ pensions, the two districts would have to muster up hefty termination fees. CalPERS asks for that money up front, and then moves the separating agency to a low-risk fund called the terminated agency pool.”

That’s the whole problem, CalPERS has continued to take gambles that have led their agency into near bankruptcy, they’ve had to be bailed out twice by the California legislature, that I know of. 

I don’t blame agencies for not paying their liabilities either – those employee contracts weren’t made on the level.  Let’s the employees come out and ask the rest of us for that kind of deal – they won’t, because they know it’s a rip. They do it behind closed doors, with “collective bargaining” and “binding arbitration.”  They pay their unions to pay off our legislature to uphold the laws keeping the public away from the bargaining table. 

Maybe we’re seeing the beginning of the end – 

“Three other small departments, including the Herald Fire District near Galt, have filed notices to separate from CalPERS.

The Herald Fire District voted unanimously in January to withdraw from the pension fund, citing a preference to expand its volunteer firefighter program. It’s not clear yet how much money it would have to pay CalPERS to find pensions for five former workers.”

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