[ken5050]

Here's another,and different perspective. For private (non-government plans) the MAXIMUM annual benefit that can be funded is about $ 300k/per year. This rule was established so that highly compensated individuals who own businesses wouldn't be able to put away massive amount of money for themselves ON A TAX DEDUCTIBLE BASIS. Indeed, if a husband and wife are both employees of the same business, their COMBINED annual benefit from the DB plan can't exceed the $300k limit.

To avoid that limit, some 70% of businesses have established supplemental plans ( called SERPS) for their top employees. The key difference is that SERPS do not have the protections under ERISA, and the promised benefits aren't guaranteed, if the business fails. Also, the benefits to the employee can be attacked via litigation.

Government plans like CALPERS are different in that the employers ( various levels of government) aren't concerned about the tax deductability of their payments into the plan; however, it does show how benefits and protections accorded to government employees today far exceed that for the private sector.

CALPERS, and other government plans have no business providing benefits in excess of $300,000 for any employee..indeed the maximum should probably be $200k. That should be an immediate reform.

[vette6387]

“CALPERS, and other government plans have no business providing benefits in excess of $300,000 for any employee..indeed the maximum should probably be $200k. That should be an immediate reform. “

I wouldn’t worry about CALPERS, it is said to be more than a half a trillion dollars underfunded at this juncture. That gravy train has square wheels going forward, and their initial claims in the municipal bankruptcies here (Stockton and San Berdo) to the effect that they “have to be paid” look to be loosing in court.