Stock Market Swoon Hammers Cal PERS.
Original post made by Citizen Kane on Feb 3, 2009
Please read the Wall Street Journal article below.
Just google WSJ cal pers and you'll find the bad news.
on Feb 4, 2009 at 1:05 am
There is a quote in the article from an official with the Burbank School District. Is this the fund that provides retirement pay to our Pleasanton teachers? This article is several months old but should we be expecting the other shoe to drop on the matter as well? Has anyone seen info from PUSD abut this?
This puts me back to my position that there are no guarantees in life (unless you are a union member.) There is no one for me to ask to shore up my 401k losses. My family and I will have to bear the burden and the consequences ourselves because that is our retirement.
on Feb 4, 2009 at 5:15 pm
The teachers have a different fund.
I don't know the name but i'm sure it's value has gone way down.
According to the latest budget, 9% of payroll at PUSD goes to their pension.
Will the teachers be asked to contribute more or will we be on the hook.
Frankly, I don't know.
on Feb 4, 2009 at 5:50 pm
Traditionally all government employee pension funds have been fully guaranteed by the employer (the State of California in this case). If invested funds reduce in value, the agency (and the tax payer) is still on the hook for the full amount. Of course it works the other way too, but not this year!
It's often been said that the taxpayer pays for every government service at least twice through administration fees and actual service costs. Of course, if you pass a tax on yourself to fund something that is traditionally covered by another tax you pay for it at least twice again.