Global Pensions

April 6, 2008

Please see the following link for the Globalist quiz on the SJ Mercury News online newspaper in regards to Global Pensions:

Here is our response:

Dear Editor:
In response to your findings in the San Jose Mercury News, I think California Pensions would be of more interest than Worldwide.  California has a larger economy than three of the countries mentioned.  Please find the attachment that talks about pensions here and the problems with Prop 13 and solutions to help increase Real Estate sales and Property taxes.
Jim Hall

Collision Course between Private sector and Government Employee Pensions

March 14, 2008

Collision Course between Private Sector and Government Employee Pensions

Thirty years after the passage of Prop 13, state, local government, and school employee pensions, (Calpers and Calstrs), cover some 3,476,650 people, the vast majority of public employees.  The cost of these plans appears to be on a collision course with the private sector’s ability to pay.  In the year 2003-2004, the average annual salary paid to Calpers members was $46,124.  The private sector was $35,219.  Benefits paid statewide to retirees from these plans were $20.1 Billion.  Total state tax revenue was $37.7 Billion. While the funding sources are different, the comparative magnitudes are alarming.  Pensions can amount to 100% of their highest salary at age 55 after 30 years of service for life.  The payouts are so high early, they become an incentive to terminate and move on leaving the city basically with one employee for the cost of two.  The private sector cannot afford defined benefit plans for life.  The Vallejo proposed bankruptcy is the first of many if the public employees don’t reduce their demands.  Read the rest of this entry »