Friday, October 31, 2014

Some unpleasant municipal arithmetic

The Sacramento Bee's designated blogger for government employees, has it;
...more retirees are drawing money from their retirement systems while fewer active employees are paying in. Some of the troubling numbers:
▪ Cities and counties statewide paid $17.52 billion last year into pension funds, up from $6.38 billion in 2003. Employees’ contributions rose from $5.21 billion to $9.07 billion in 2013.
▪ Despite receiving more money, pension systems’ unfunded liabilities soared from $6.33 billion to $198.16 billion over the 11-year span.
Meanwhile, the city of Stockton emerges from bankruptcy...sorta;
Government pensions in California remain untouchable, at least for now, after a bankruptcy judge approved Stockton’s plan to repay its creditors Thursday without reducing the city’s pension obligations.
In a major victory for CalPERS and public employees, U.S. Bankruptcy Judge Christopher Klein approved Stockton’s reorganization plan over the objections of a disgruntled investment firm, Franklin Templeton, which wanted more money at the expense of the city’s pension benefits. “This plan, I’m persuaded, is about the best that can be done,” Klein told a packed courtroom in U.S. Bankruptcy Court in Sacramento.

Read more here: http://www.sacbee.com/news/business/article3474893.html#storylink=cpy

Read more here: http://www.sacbee.com/news/politics-government/the-state-worker/article3441531.html#storylink=cpy

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