Oakland's Pensions time bomb
Original post made by Anti-PUBLIC unions on Jul 29, 2012
Oakland can't meet it's obligations, so last month, the majority of Oakland City COuncil, at the urging of Mayor Quan, voted to borrow money once again to cover their pension bill----$210 million in new pension BONDS that will cost $105 million in INTEREST over the next 14 years.. That way, the loan will allow the city to avoid paying for the pensions from the 'general fund. The next generation has no chance. This latest crisis of IRRESPONSIBILITY looks like an inevitable bankruptcy in the not too distant future.
As an Alameda County neighbor, I can't help but think of Germany and irresponsible Greece.
As an Alameda County taxpayer, as well as the state of California, I say it is time all municipalities in this state put all public union contracts on ballots for a vote of taxpayers in each local juristiction. It is only logical and responsibile to have approval of the taxpaying employers. We should vote.
on Jul 30, 2012 at 2:17 pm
The problem is that government employers got a free ride when times were good.
When interest rates were very high, pension funds were invested so well that governments were allowed to reduce or stop paying toward employee's pensions, because of the interest or return on the investments.
But when interest rates came down, pension funds just burned away their funds, and did not promptly ask employers to pay, or to pay enough. Eventually that caught up to them, and employers not only have to pay, they need to make up for some of the prior free ride.
CalPERS, UCRS, and the teachers pensions are similar in this.
Yes, the employers now need to pay more. If they'd paid all along they would not have this shortfall.
It is interesting to see news articles that say last year CalPERS was getting a 17% rate of return on investments. This year they only got 1 %.
Employees did not cause the recession, and cutting the pensions that they are entitled to, based on years of service, will not solve today's problems.
on Jul 31, 2012 at 11:26 am
The University of California $100,000 Pension Club Has Grown to 2,100 Members
The CalSTRS $100,000 Pension Club Has Grown to 6,600 Members
The CalPERS $100,000 Pension Club Has Grown to 12,000 Members
on Jul 31, 2012 at 11:44 am
Yes! Pension tsunami!!!!!! This is what I've saying for years. ForGET about what 'Pensions were never the problem' has to say. Who wants to argue against THAT? Just listen to the crickets and woodpeckers!!!!! Read the rightwing blogs!!!!!! It's coming!!!!! Hold onto you horses!!!!!! C'mon folks, we need to start paying all public workers minimum wage. It's the only way to stop the big FLOOD that's coming our way. And what 'Pensions were never the problem' has to say????? Forget it. It's not worth it.