Thread: California Pensions Exceed 550% of State Tax Revenue 2012

Friday, October 22, 2010

California Pension Promises Exceed 550% of State Tax Revenue by 2012; A Look at Solutions

To put a little perspective on the pension crisis, please consider the Bloomberg article California Pension Promises May Top Taxes Fivefold http://noir.bloomberg.com/apps/news?pid ... SBUvL5xvOo

To keep their promises to retirees, the California Public Employees Retirement System, the biggest plan, the California State Teachers Retirement System, the second-largest, and the University of California Retirement System may have combined liabilities of more than 5.5 times the state’s annual tax revenue by fiscal 2012, according to the study released today by the Milken Institute. Levies are forecast to reach about $89 billion in the year that began July 1.

Debts to government retirees including those in California, the biggest state by population, have grown into a national crisis as pension plans strive to meet obligations to more than 19 million active and retired firefighters, police officers, teachers and other state workers. Fewer than half the plans had assets to cover 80 percent of promised benefits in fiscal 2009, according to data compiled for last month’s Cities and Debt Briefing hosted by Bloomberg Link.

“California simply lacks the fiscal capacity to guarantee public-pension payments, particularly given the wave of state employees set to retireâ€

I wonder how much their unions gave out as political candy for the Democrats?