CalPERS puts nail in coffin on cities choosing to leave the system

The Orange County Register reports this morning that CalPERS, the big state pension fund, has effectively slammed the door on cities thinking of getting out of the guaranteed pension business.

Last month, the fund’s board decided to recalculate the unfunded liability of any agencies that want to leave the system, using a discount rate of 3.8 percent instead of 7.75 percent.

That means that a city that believes it owes a bajillion dollars will be told it owes something closer to four bajillion if it tries to leave.

So the door is not officially closed – it just got real expensive to open.

We saw a preview of the costs that would have come to Costa Mesa if they checked out of the system and outsourcesd most of their city jobs. This makes the wholesale destruction of public services by cities trying to duck out of rising pension costs by outsourcing.

  10 comments for “CalPERS puts nail in coffin on cities choosing to leave the system

  1. cook
    September 9, 2011 at 9:47 am

    Sounds like the state needs to disband CaPers for the good of all

    • Kathy Findley
      September 9, 2011 at 12:23 pm

      If the Tea Baggers want to disband social security and medicare, and any union retirement benefits, what do they expect the non rich to do when we retire? Trust Wall Street and the private sector to offer retirement? HELL NO. Sounds like the Right Wing are the ones cooking up death panels, because if we go that way, we have nothing to live on.

      • junior
        September 9, 2011 at 12:38 pm

        You know what Tea Baggers refers to now Kathy.

        • Kathy Findley
          September 9, 2011 at 4:05 pm

          Junior! You old son of gun! How are ya!?

      • September 9, 2011 at 1:50 pm

        Greetings Kathy,

        You must have missed Obama’s jobs speech. Obama urged Congress to slash Social Security taxes for both employees and employers, (also on page 3 OC Register 9/9/2011). So therefore either:

        (1) Obama is a secret Tea Party member. Or
        (2) Obama is incompetent.

        http://www.larouchepac.com/obamawatch

        • Kathy Findley
          September 9, 2011 at 4:10 pm

          I didn’t miss it. and I LOVED every minute of it. It’s ok to cut some taxes if you are creating more jobs my friend. The Tea Baggers don’t allow smart people in there party, Libertarians do though….

  2. junior
    September 9, 2011 at 12:43 pm

    Sounds like a lawsuit is in the making. If CalPers can use the pie-in-the-sky 7.75 percent figure to convince the public that they are not bankrupt then those deciding to leave their corrupt system should be able to use the same 7.75 figure in order to calculate their withdrawal liability.

  3. September 10, 2011 at 6:42 pm

    I realize my comments hit the brick wall on this site, but will make them anyway.

    I suggest you look around you at just who the Tea Party Members really are that you accuse of being stupid. They are not the far left Socialists from the 1960′s, they are not the union thugs who rough people up at rallies and they are not those who want government to be all things to all people.

    Instead,they are the mothers, fathers, grandparents, aunts, uncles and people from all walks of life. I would go so far as to say, included are many union members who must belong to work, but do not buy the liberal B/S people like you shovel at them. There is no violence at the Tea Party rallies, even though their own government accuses them of being right wing terrorists. Yep, the Tea Party does have it’s extreme element, but they are miniscule compared to that of the Democratic Party. As the election campaign moves forward, the Tea Party Groups will have to do a better job at screening out those extreme elements. Can you say the same for the Democratic Party? Didn’t think so.

    In the end, people are sick and tired of inept government and it’s negative impact on society. They are becoming smarter each and every day, as the credibility of Obama and the Democrats declines. By election day, all those “dumb” Tea Party voters will have the political IQ of a genius. With that wisdom they will make wholesale changes in Congress and finish what was started in 2010.

    Keep following the Pied Piper of Chicago Kathy and we won’t miss you after election day.

    • threebeers
      September 10, 2011 at 9:36 pm

      Actually every tea partier I have ever seen is a cheap beer drinking racist or his stepford wife who likes to feel powerful clutching her gun.

      • September 10, 2011 at 11:20 pm

        Kathy, I suppose you need to get out more and discover the real world. Actually, the people you described sound more like conga line dancers following the Pied Piper of Chicago. Just for your information, those four clowns on the Costa Mesa City Council wouldn’t make a pimple on the rear end of a real Tea Party Member. They are all clones of the puppet master, Scott Baugh who continues pulling their strings.

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