Pensions -- December 15, 2016

Updates

December 18, 2016: the long cold winter for California's pension fund is coming. Data points:

• only three sources for funds
• profits from the stock market
• worker contributions
• government contributions
• 2016: $7.2 billion in pension payments; more than 60% more than just nine years ago

Advice from CalPERS board member: "I think that we need to step back and breathe."

Perhaps better advice: "Hey. guys, let's work with President Trump, make America great again, and continue the Trump rally." Ha-ha -- like that will ever happen.

Original Post

Previously posted: Dallas, TX, faces bankruptcy due to city pensions. Two problems: guaranteed 8% annual return; no restrictions on lump sum withdrawals (this benefit has since been changed).

California: America's largest pension fund -- a 7.5% annual return is no longer realistic.  -- WSJ. Data points:

• the pensions are guaranteed
• any state shortfall must be picked up by cities

One can only assume CALPERS administrators are happy with the Trump rally; this rally would not have happened under a Hillary presidency.  The most disturbing "disclosure" in the recent Vanity Fair piece was how insular (autocratic? dictatorial? delusional?) Hillary had become.

California budget: