Here is the score: CalPERS has a $1.4 trillion unfunded liability according to the Stanford Pension Institute run by former Democrat Assemblyman Joe Nation. In the Guvs budget is an extra $500 million, just to keep the checks flowing. Then the Guv is “borrowing” $6 billion from a previously unknown State slush fund—we have no idea how much is in that or other secret accounts. Remember, the UC system finally admitted to hiding $175 million. Lastly, CalPRS is also forced to double the mandatory contributions over the next five years! There is not enough money to save CalPRS.
“Today, Assemblyman Bill Brough (R–Dana Point) discussed a reform proposal to ensure the sustainability of California’s public employee pension system. The California Pension Protection Act (ACA 15) would give voters a voice in their government’s pension decisions and protect vital services that could be threatened by unfunded pension debt. Because workers depend on the pensions they have been promised, this proposal reforms the pension system without impacting current government employees or their benefits.
“Out-of-control pension debt is threatening the services our citizens rely on,” said Brough. “This proposal will protect existing pensions and give people a say in how much debt their government takes on.”
The bad news is that the Democrats will never allow the saving of the pension system. When the people of San Diego and San Jose overwhelmingly voted for reforms, the unions, surrogate owners of the Democrat Party, went to court, to force the system to go belly up. Where is the leadership of Guv Brown? He is silent. No surprise. Democrats really do not care, except to bring down the whole State. Ready for the California depression?
Money
Assemblyman Brough Calls for Pension Reform to Give Californians a Voice in Public Employee Pensions
Assemblyman Bill Brough, 5/24/17
SACRAMENTO – Today, Assemblyman Bill Brough (R–Dana Point) discussed a reform proposal to ensure the sustainability of California’s public employee pension system. The California Pension Protection Act (ACA 15) would give voters a voice in their government’s pension decisions and protect vital services that could be threatened by unfunded pension debt. Because workers depend on the pensions they have been promised, this proposal reforms the pension system without impacting current government employees or their benefits.
“Out-of-control pension debt is threatening the services our citizens rely on,” said Brough. “This proposal will protect existing pensions and give people a say in how much debt their government takes on.”
Californian’s unfunded pension debt is approaching half a trillion dollars. Without reform, governments will be unable to meet their pension obligations, forcing them to cut retiree benefits, raise taxes, or slash services.
“During the next 7 years, unsustainable pension costs for many cities will increase by 50 percent and they will double for all school districts,” said Dan Pellissier, President of California Pension Reform. “ACA 15 allows voters, instead of politicians, to decide if new government employees receive expensive lifetime retirement promises.”
“The necessary increase in state and local tax burdens to fully fund the State’s pension system will cause California’s economy to be 21 percent smaller over the next 30 years. This will result in drastic cuts to jobs and will significantly impact every Californian” stated Mission Viejo Mayor Wendy Bucknum, “I thank Assemblyman Bill Brough for his commitment to reforming this broken pension system.”
The California Pension Protection Act would require voter approval to establish new pension plans, enhance pension benefits, or for governmental employers to pay more than one-half of the cost of pension benefits. It would also stop pension boards from punishing governments that make the fiscally prudent choice to transition away from pension plans.
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