[Apollo]

(05-23-2014 01:20 AM)iknowexactly Wrote:  

(05-22-2014 12:26 AM)lurker Wrote:  

Make the generations responsible for the shortfall take the haircut in pension payment. You have a vested pension, but you consistently voted for a local or state tax level sufficient to fund 67% of it? You get 67% of your pension. Problem solved. While we're on the subject, pensions are capped at a fraction of ending base salary, no overtime pumping allowed. This is retroactive to current pensions. Otherwise, let the localities dump them in Chapter 9.

Hey, you're welcome to try it. Lots of ex-cops collecting pensions, plus tons of teachers.

It's a democracy, sort of. Just get your 27 year-old self up on a soapbox or run for office on cutting all our pensions, despite the fact they were guaranteed in legal contracts. Also, we're not ASKING for the money, we already have it in our pension fund. You have to come get it.

I'm sure you'll go far.

Just to help you target our money, here's the current total of what you want to get your hands on.

While we're at it, how about refunding part of the salary YOU'VE earned. I've decided you weren't entitled to it, because of how you voted-- and I want it back retroactively. Problem solved.

What do you mean that you already have it?

The money you cite (MV of CALPERS) is tied to a variety of endogenous variables (interest rates, expected rates of return, etc.) that fluctuate with the tides of the market. It's no more of a guarantee than any other poorly managed pension plan. Disbursements can and will be effected if California is unable to sufficiently finance new debt to cover their massive spending shortfalls. That the state legislature and city governments of California fail to have a firm grasp on creating wealth (rather than plundering it) may serve as an accurate precursor as to what the future of the state entails.

However, I would not bet against that occurring in the short term. California still has a couple of tricks up its sleeves since it carries considerable economic power that it can use to leverage some kind of bailout deal when it needs too. If other states were smart, they might even want to include themselves in on that deal too. (Michigan, NY, NJ, Texas, Ohio)

Long-term outlook though...something's gotta give. Hard to tell if government pensions would be targeted specifically, or something else, but someone is going to take the haircut. Luckily in a democracy, all you need is 50.1% of the vote to control who gets fucked and that will most likely be the private sector in those respective states. All the more reason for them to pack up and move.