Ed Ring: Post-Coronavirus Pension Reform Checklist

4 Apr

Dave sent this article from California Globe

https://californiaglobe.com/section-2/post-coronapocalypse-pension-reform-checklist-for-california/

Ed Ring explains in his article, “Post-Coronapocalypse” that CalPERS was already faltering before the CVBS, and will most certainly be demanding more from their member agencies in the wake of recent market downturns. Even with the market on the up now, the recent crashes sent the already teetering CalPERS fund further into the  dumps.

Ring explains “catch up” payments. “The most important distinction one should make when reviewing the above data is the difference between the “normal” and the “catch-up” payments. The so-called “normal contribution” is the amount the employer has to contribute each year to maintain an already fully funded pension system. The “catch-up” or “unfunded contribution” is the additional amount necessary to pay down the unfunded liability of an underfunded pension system.”

This CalPERS tidal wave could take out smaller  towns like Chico. Staff wants the taxpayers to chain up and start working to pay their special entitlements by way of a sales tax increase. Or, we could get out of CalPERS and offer 401Ks.

City management doesn’t want to lose their CalPERS benefits, but they’ve already worked 457 Plans into their contracts, that’s a special 401K for public workers. It seems pretty clear to me that they are only looking out for themselves.

Ring offers suggestions for pension reform, starting by withholding more from employees’ paychecks. But, CalPERS supporters cite The California Rule, saying we have to pay their pensions no matter what. That’s the next conversation.

2 Responses to “Ed Ring: Post-Coronavirus Pension Reform Checklist”

  1. bob April 4, 2020 at 12:53 pm #

    Here’s another eye-opener

    https://californiaglobe.com/section-2/time-for-californias-unions-to-get-serious-about-pension-reform/

    “Time for California’s Unions to Get Serious About Pension Reform

    The idea that CalPERS and other pension funds were ever helping California’s economy is a blatant falsehood”

    And look how ridiculous the CalPERS pensions are compared to Social Security

    “An independent contractor in California has 12.4 percent withheld by the Social Security Trust Fund, and for that, they may expect a maximum of $45,480 if they retire at age 70, after nearly 50 years of work.”

    Meanwhile, scores of government employees retire in their 50’s with ever increasing six figure pensions plus healthcare.

    The article also goes into detail about the enormous burden the California government pensions will put on the people of this state.

    But of course, you’re not supposed to talk about this. Right Christi?

    You’re just supposed to shut your mouth and go right along with Orme’s tax increase, and he will give you plenty of BS about it at the next city council meeting.

    So while you lose your job and your 401k implodes just shut yer yap and suport Orme’s tax increase. After all, it would be a tragedy if he ever lost a penny of the multi-millions he will collect in retirement.

  2. Scott Rushing April 4, 2020 at 7:16 pm #

    👍

    On Sat, Apr 4, 2020 at 5:57 AM Chico Taxpayers Association wrote:

    > Juanita Sumner posted: “Dave sent this article from California Globe > https://californiaglobe.com/section-2/post-coronapocalypse-pension-reform-checklist-for-california/ > Ed Ring explains that CalPERS was already faltering before the CVBS, and > will most certainly be demandin” >

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