Posted on 09/14/2017 6:53:17 PM PDT by SeekAndFind
Ten workers and retirees from government agencies in two far corners of California likely will see their pensions slashed because their employers have not paid bills to the state’s largest retirement fund in more than a year.
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.
The CalPERS Board of Administration is scheduled next week to vote on ending contracts with the two small districts because they’re in default.
The districts are expected to join the town of Loyalton in Sierra County and an organization called the East San Gabriel Valley Health Consortium as small governments that are falling out of CalPERS because of different financial stresses.
In Trinity, five current and former employees will see promised pensions slashed by 70 percent. Niland’s five beneficiaries will see a 92 percent to 100 percent cut in pension benefits, according to CalPERS’ staff reports.
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.
CalPERS says Niland owes about $200,000 to cover the long-term costs of its employees’ pensions in the terminated agency pool, while Trinity owes some $1.6 million. Trinity has asked CalPERS for a 30-year, no-interest payment plan to cover the termination fee, but the district and the pension fund have not reached a deal, according to CalPERS.
More than 1,500 local government agencies are part of CalPERS, the $333 billion pension fund. As a whole, CalPERS has about 68 percent of the assets it would need
(Excerpt) Read more at sacbee.com ...
That is what happens when you pay people not to work.
What an interesting way to run a retirement fund.
Something smells really rotten about this.
It’s not going to be pretty.
It's good to be part of the government elite.
99.9% of these employees voted “Rat” and this is what they got “Rat Poop”! The hard working neighbor told me: “But the Union told us to vote this way.” OMG!!!
So have they notified the participants that the fund is endangered?( for multi employer plans)
Nothing to see here it’s a government operation.
Endangered, Critical, or Critical and Declining Status
Under federal pension law, a plan generally is in “endangered” status if its funded percentageis less than 80 percent. A plan is in “critical” status if the funded percentage is less than 65percent (other factors mayalso apply). A plan is in “critical and declining” status if it is incritical status and is projected to becomeinsolvent (run out of money to pay benefits) within 15years (or within 20 years if a special rule applies). If a pension plan enters endangered status,the trustees of the plan are required to adopt a funding improvem entplan. Similarly, if apension plan enters critical status or critical and declining status, the trustees of the plan arerequired to adopt a rehabilitation plan. Funding improvement and rehabilitation plansestablish s t epsand benchmarks for pension plans to improve their funding status over aspecified period of time. The plansponsor of a plan in critical and declining status may applyfor approval to amend the plan to reduce currentand future payment obligations toparticipants and beneficiaries
0.6% in 2016? The S&P 500 went up 11.96% that year. How much do you have to either skim or “invest” in politically favored companies to get down to 0.6%?
A person who works in the public school system in Grass Valley CA told me that althogh the pay wasn’t anything close to the Bay Area...that PERS put in .25 for every dollar in salary...vested after 5 years.
Well, I wasn’t ultimately interested in working in CA but I wonder if that money will ever been seen.
$333 billion
Keeping all the pension money in one basket
is STUPID!
It’s been rotten here in CA for decades, but the problem isn’t so much with CALPERS as it is with the agencies and local governments inability to fund the lavish pensions they’ve set up. And we’ve had several municipal bankruptcies recently where the bankruptcy court has told the cities that they could trim pensions, and they have chosen not to do so. How they have managed to go through the process successfully remains a mystery to me. My bet is that they will go bust again, soon.
Might be a good idea to advertise the sale of automatic weapons into the areas where they will kill the pensions.
“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.”
I have no sympathy for people who believe the promises made by politicians.
None.
L
Coming eventually to most government workers.
Tiny violins.
Yawn.
My local newspapers debated this on a fairly continuous basis throughout the sixties and seventies.
I have gone over the numbers with idiots all my life who believed having basic math and the details of government pension plans explained to them equated to wacko conspiracy theories.
Now the say of reckoning is close and most of those who initiated this crap are long dead.
Financial stresses? How about it's own members looting the system?
I could name some things causing these stresses. These unionized mobsters saw this coming long ago. So bad in the counties and cities, fire and the cops and public employees are about the only ones nowadays who readily qualify for $750,000 higher end homes in CA. It's where they can park their high end Lexus and corvettes etc. Just pick your home, it's no problem. One can imagine what the city attorneys, DA's, city council members, water and power, street workers, contractors and all their staff's are milking the system for.
And Btw, they should take a real hard look at those juggling the CalPERS books.☺
The CA private sector downsized significantly long ago. Public employees will eventually follow suit, no choice. Or CA can just continue looting and beating down what's left of middle class with their punitive taxes...Which I'm convinced is their ultimate goal anyway. Their bosses want Trump supporters and deplorable middle class white folk run out. Some within the state have come out and said as much. So there ya have it. The whole enchilada.
Lavish is not an overstatement. It's very odd, for public employees, also known as public servants, the economy has been really good...forever and gets better. Their unions make sure of it! ☺ Meanwhile, private sector middle class in CA got beat like a drum. All this while listening to regular radio spots from unions representing teachers demanding more cash, benefits and prizes. I think they go on year round. Seems like it.
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