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According to a Stanford study, the State pension plans have approximately $525 billion in unfunded liabilities. This is money we taxpayers will have to pay.
"Unfunded public pension liabilities, which a Pew Center on the States report calculates is now as high as $1 trillion nationwide, threaten to bankrupt states that fail to address this ticking fiscal time bomb. But in California, which has an unimaginable $500 billion public pension problem and became the object of national ridicule for outrageous pension abuses in Bell, state lawmakers still couldn’t bring themselves to pass legislation preventing highly paid government employees from using unused vacation and sick days accumulated during their last year on the job to pad their life-long pensions."
Even marginal changes that could save a few billion are held up by the Democrat controlled Sacramento legislature.
Utah, under Republican control was able to change their problem pension plan.
"Utah doesn’t have that problem anymore. In March, the state legislature became the first in the nation to pass a major overhaul of the states defined benefit pension system after it lost 30 percent of its assets ($4 billion) in the stock market. All current employees will continue in the present system. But all new workers hired after July 1, 2011 can choose to enroll in either a 401(k) or a hybrid pension system that caps state contributions at 10 percent of employees salaries no matter what the stock market does."
This explains why so many California companies are moving to Utah. That State has a responsible legislature; we have one owned by the unions and a Governor who on September 9 will go on a six day tour of Asia, even if we do not have a budget. California is in a Great Depression and those running the State like it like that.
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"Unfunded public pension liabilities, which a Pew Center on the States report calculates is now as high as $1 trillion nationwide, threaten to bankrupt states that fail to address this ticking fiscal time bomb. But in California, which has an unimaginable $500 billion public pension problem and became the object of national ridicule for outrageous pension abuses in Bell, state lawmakers still couldn’t bring themselves to pass legislation preventing highly paid government employees from using unused vacation and sick days accumulated during their last year on the job to pad their life-long pensions."
Even marginal changes that could save a few billion are held up by the Democrat controlled Sacramento legislature.
Utah, under Republican control was able to change their problem pension plan.
"Utah doesn’t have that problem anymore. In March, the state legislature became the first in the nation to pass a major overhaul of the states defined benefit pension system after it lost 30 percent of its assets ($4 billion) in the stock market. All current employees will continue in the present system. But all new workers hired after July 1, 2011 can choose to enroll in either a 401(k) or a hybrid pension system that caps state contributions at 10 percent of employees salaries no matter what the stock market does."
This explains why so many California companies are moving to Utah. That State has a responsible legislature; we have one owned by the unions and a Governor who on September 9 will go on a six day tour of Asia, even if we do not have a budget. California is in a Great Depression and those running the State like it like that.
More...