Posted on 03/18/2011 1:50:16 PM PDT by SeekAndFind
San Francisco's public pension crisis is way worse than many thought, according a new study from Stanford professor Joe Nation.
Here are some highlights from the report:
* The San Francisco Employees Retirement System (SFERS), which covers most of the city's municipal workers,faces an unfunded liability of $4.4 billion on a market value basis. That's nearly $35,000 per every San Francisco household.
* SFERS' reported liability is based on an optimistic 7.75% annual rate of return. If the 1990-1999 historical average rate of return - 6.2% - is used, the city's unfunded pension liability grows to $6.8 billion.
* The city also reports more than $4.364 billion in unfunded retiree health care costs. That figure will likely grow to $9.5 billion by 2028. Without major policy changes, "the probability of San Francisco meeting its unfunded health care obligation is zero."
* The city now spends $514 million on pension and healthcare. By 2016, that cost is likely to balloon to $1 billion - more than the police department, fire department, sheriff's department, DA's office and probation departments combined.
The report concludes that the only way San Francisco could even begin to dig itself out of its pension hole is through serious pension reform - namely, increased employee contributions. The city's labor unions, however, have made it clear that any changes will meet stiff resistance.
(Excerpt) Read more at businessinsider.com ...
I’m not terrified by it. I think its funny actually...
Leftest run wild and surprise surprise they bankrupted the city...
Its a hard lesson people need to learn and the only way they will learn is suffering the consequences.
OK everyone, just sign over the deeds to your property to the unions and move out
A doublewide in Alabama is starting to look better and better
Greedy socialist bastards!
How does one not understand if you have no money... you have no money. What do these unions want exactly. At the end of the day all workers will be fired and unions cant make squat.
This story is repeated all over the country. Politicians in cities all over the country gave gold plated retirement plans to employees but never funded them. So irresponsible it defies belief.
The beneficiaries would rather see their cities turn into western ghost towns then give up one dime. And the courts seem determined to try to extract this blood from these bankrupt stones $35,000 per person in San Fran) no matter what.
It’s not funny at all. It is a national tragedy. Some cities are literally going to fall apart at the seams. They already are.
Put a tax on activity at the Folsom Street Fair, and let the liberal libertines who go there, pay the additional taxes needed to fund their liberal paradise.
We will be lucky if only a few states or municipalities go bankrupt and provide the impetus for reform to the others.
I doubt that will happen though. Adjustments like these come in big tsunamis, like the mortgage crisis. Insolvency will wash over all of quickly and all at the same time.
Concur. As long as we don’t have to bail them ou, I find it amusing.
Seriously the SF public union is sick.
How can they with common sense not be willing to have the members make more contributions?
Greedy liberals.
How can there be a pension gap in such a progressive city?
The tax owed is the minimum.
They must start paying more!
And there are dozens of similar shortfalls around the country. Some, Chicago, even worse off. If the Pubs ever lose complete control of congress again a la 2006-2010 the country’s private retirement accouts will be snapped up in a minute. It’s the last big stash of vulnerable cash left and the Dems will feel obligatied to “spread it around”.
They, the US government is going to find out pretty damned quick how many of us traditional tax paying suckers are checking out. I punch out in July. I'm not gonna pay $50-60K in Federal Taxes any more. I've paid off my home, my bills, loans, cars, etc. I'll just do with what I have and get for as long as it's there.
I find your smug amusement disgusting. It isn’t just San Fransisco. Every state is filled with towns like this. States themselves are in this mess. Real people, real completely innocent people, are going to hurt badly.
And if you think you, your family, your friends are going to escape the pain you are kidding yourself.
1) The big union bosses hope that by the time they are out of money they are safety far away enjoying a luxurious retirement. What do they care about the rank and file, they are just useful idiots.
2) Liberals are brain damaged and stuck permanently in a child like condition. Trying to explain to a Liberal there's no money for what ever stupid idea they have is no different than trying to explain to a 3 year old why there's no money and they can't have a pony.
It is hilarious in San Francisco. Very sad most other places.
A relative of ours is a state employee and she’s convinced that “her” union has taken all of her dues and has invested it wisely for her retirement. When the state talks about problems paying for her pension she thinks its because someone wants to take away the money she has setting in that big investment bucket and not that the money just isn’t there. How do you talk sense to someone that won’t listen?
Good.
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