The Pensions That Ate America

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Doka
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The Pensions That Ate America

Post by Doka » 09-27-2017 09:48 PM

This is a problem not soon to go away. I don't know of any State that does Not have this problem to some degree.

These unsecured Pension" promises in the dark" have the potential to bankrupt every State in the Union. How they where allowed to become such a financial National Monster? I'll leave to those who live to blame. We need a fix and we need it NOW!

One thing I can Guarantee , Nobody is going to be happy.




Six-Figure Pensions For University Of California Teachers Surge 60% Since 2012


Back in January 2017, the University of California system of schools approved their first in-state tuition hike in six years.  And while one might hope that the extra millions of dollars raised as a result of those hikes would go toward a better education for students, in reality, a large chuck will go to fund the exorbitant pensions of retired teachers. 

As the Los Angeles Times recently pointed out, there are over 5,400 retirees in the UC system drawing over $100,000 per year, a 60% surge since 2012.  Moreover, there are nearly 3 dozen former teachers drawing over $300,000 per year. 

The Rest of the Story

http://www.zerohedge.com/news/2017-09-2 ... ge-60-2012





Teachers Demand $3,200 From Each Kentucky Household To Fund Pension Ponzi For 2 Years


We have written frequently over the past couple of weeks about the disastrous public pension funds in Kentucky that are anywhere from $42 - $84 billion underfunded, depending on which discount rate you feel inclined to use. As we've argued before, these pensions, like the ones in Illinois and other states, are so hopelessly underfunded that they haven't a prayer of ever again being made whole.

That said, logic and math have never before stopped pissed off teachers and/or clueless legislators from throwing good money after bad in an effort to 'kick the can down the road' on their pension crises. As such, it should come as no surprise at all that the Lexington Herald Leader reported today that Kentucky's 365,000 teachers and other public employees are now demanding that taxpayers contribute a staggering $5.4 billion to their insolvent ponzi schemes over the next two years alone. To put that number in perspective, $5.4 billion is roughly $3,200 for each household in the state of Kentucky and 25% of the state's entire budget over a two-year period. 

The Rest of the Story

http://www.zerohedge.com/news/2017-09-2 ... zi-2-years
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Re: The Pensions That Ate America

Post by Riddick » 09-28-2017 12:57 AM

Doka wrote:
09-27-2017 09:48 PM
This is a problem not soon to go away. I don't know of any State that does Not have this problem to some degree.

These unsecured Pension" promises in the dark" have the potential to bankrupt every State in the Union. How they where allowed to become such a financial National Monster? I'll leave to those who live to blame. We need a fix and we need it NOW!

One thing I can Guarantee , Nobody is going to be happy.
If no one else all said and done, could be some particularly "artful" and "crafty" pension fund trustees will have something they can look back on and smile about? To wit:

Wolf Richter: Broke Public Pension Funds And Exotic Boondoggles

That state and local government pension funds are going broke isn’t a new problem. That it’s much worse than reported by those pension funds isn’t a new problem either. Last June, when Moody’s Investors Services proposed four fund accounting adjustments, it determined that the already dizzying unfunded pension liabilities were actually three times higher than reported. But now there is a new problem: how trustees across the country blow money that their squeezed pension funds don’t have on an exotic boondoggle.

Massive shortages means funds won’t be able to pay the benefits promised. Benefits will have to be cut, belts around retirees tightened. Taxpayers and employees will have to pay more. Taxpayers may have to bail out retirees outright. Municipalities have gone bankrupt in order to sort out this mess.

So, California Watch shocked us with its report that four independent municipal pension systems are paying for up to five trustees each to attend a conference. Not in Los Angeles or San Francisco or Berkley. But thousands of miles away, in ... Hawaii. For six days in May, at the Hilton Hawaiian Village Waikiki Beach Resort, with plenty of time off to play, surf, roll around the beach, or stare, sweating glass in hand, at the chicks by one of the five pools.

Well actually, this being California, it didn’t shock us. But it’s not just here. The National Conference on Public Employee Retirement System marketed the shindig across the country. It expects about 1,000 attendees, including 800 trustees. Registration fees can run over $1,000, plus airfare, 5 or 6 nights at the hotel, and other expenses. The money comes from taxpayers, employees, and retirees whose pensions are at risk because there isn’t enough money.

Contra Costa County is sending five trustees. The pension funds of the city of Los Angeles, Los Angeles County, and San Diego County will also send trustees. Combined, they reported $17.5 billion in unfunded pension liabilities. And based on Moody’s adjustment, reality could be three times higher, so perhaps over $50 billion.

Expecting resistance, the conference offers a “2013 Attendance Justification Tool Kit“ for trustees who have trouble finding the right words to explain exactly why that trip to Hawaii and six nights at the Hilton Hawaiian Village Waikiki Beach Resort are essential for the survival of the strung-out fund and its billions in unfunded liabilities. The Justification Tool Kit includes a well-written “sample justification letter,” a Word document that you can download and “edit to personalize your message.” Or you can just fill in the blanks.

There are also “7 Tips for Building Your Case for Attending the Annual Conference”—crucial things to do and say to bamboozle everyone into agreeing that that expense is the best investment the fund ever made. “Focus on the issue at hand,” is the first recommendation. Truly an excellent Justification Tool Kit.

Given that the funds are short billions, the expenses for this boondoggle don’t even amount to a rounding error. But when taxpayers and employees have to pay more, and when retirees have to accept smaller pensions, or watch their fund blow up or get restructured in bankruptcy, then it would be appropriate for trustees to display a crisis mentality. Because a crisis it is. And a shindig in Hawaii isn’t going to solve it.

FULL ARTICLE

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Re: The Pensions That Ate America

Post by Doka » 10-06-2017 12:35 AM

Oregon's Gov, pretends this does not exist, how's yours doing?



Which American Cities Will File Bankruptcy Next?

by Tyler Durden

Oct 5, 2017 5:50 PM

We harp on the massive, unsustainable, yet largely unnoticed, debt burdens of American cities, counties and states fairly regularly because, well, it's a frightening issue if you spend just a little time to understand the math and ultimate consequences.  Here is some of our recent posts on the topic:

America's Pension Bomb: Illinois Is Just the Start Stanford Says Soaring Public Pension Costs Devastating Budgets For Education And Social Services Pension Consultant Offers Dire Outlook For Kentucky: Freeze Pension And Slash Benefits Or Else

Luckily, for those looking to escape the trauma of being taxed into oblivion by their failing cities/counties/states, JP Morgan has provided a comprehensive guide on which municipalities haven't the slightest hope of surviving their multi-decade debt binge and lavish public pension awards. 

If you live in any of the 'red' cities below, it just might be time to start looking for another home...

To add a little context to the map above, JP Morgan ranked every major city in the United States based on what percentage of their annual budgets are required just to fund interest payments on debt, pension contributions and other post retirement benefits.

The results are staggering.  To our great 'shock', Chicago residents win the award of "most screwed" with over 60% of their tax dollars going to fund debt and pension payments.  Meanwhile, there are a dozen municipalities where over 50% of their annual budgets are used just to fund the maintenance cost of past expenditures.



Check out your state and cities

http://www.zerohedge.com/news/2017-10-0 ... uptcy-next
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