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CalPERS rate hike: 50 percent over six years

Original post made by Arnold on Mar 25, 2013

"The CalPERS board last week tentatively approved an employer rate hike of roughly 50 percent over the next half dozen years, replacing a policy that kept rates low during the recession with a plan to reach full funding in 30 years...

"Any addition to the schools (rate) is likely to result in layoffs to employees," said the board president, Rob Feckner, who represents the largest group of CalPERS members, non-teaching employees in 1,488 school districts."

This is a separate issue from what's been discussed in "Re: Pleasanton school district to end fiscal year with hefty balances" (not true): Web Link

"the Teacher's Pension (CalSTRS) is in dire straights and in need of a significant cash infusion. The PUSD also knows this. The increased cost will amount to an additional 15% of payroll (not just a 15% increase but an almost tripling of the current pension cost of 8.25% of payroll, to 8.25% + 15% = 23.25% of payroll for the tax payer portion/district portion of the pension obligation)."

Now we have CalPERS claiming a need for fifty percent increases in th pension cost of non-teaching school administrators while CalSTRS (the teachers pension fund) is set to triple the cost of the teachers retirement fund, while the Pleasanton school district is claiming "hefty balances". All of these conclusions can't possibly be true when the increased dollars all come from the school districts "hefty balances".

How can this school district/Board claim hefty balances?

Comments (2)

Posted by Drowning, Drowning I Tell You, a resident of Another Pleasanton neighborhood
on Mar 25, 2013 at 10:30 pm

They can't! We're all sinking! This is a tsunami of gargantuan magnitude! Is it just? I don't know and I don't care. Is it reasonable? I don't know and I don't care. Is this a more critical problem than kids not getting enough to eat? I don't know and I don't care. Clearly we need more links! And more links! But even those won't save us from the crushing waves of unsustainability that are swallowing us whole. Glub. Glub.


Posted by Mr, drowning, a resident of Another Pleasanton neighborhood
on Mar 25, 2013 at 10:51 pm

What you should take from this is that our CA educational system dollars are being diverted from their primary purpose - education, to fund retirement benefits. It isn't JUST about the diversion of those dollars away from the classroom but also about the teachers pensions plan (CalSTRS), and the classified employees (CalPERS), skimming money from their own funds and now asking taxpayers to cover both the skim and market losses.

Maybe you're OK with that but I'm not.


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