Press Release: Public Employee Unions Misrepresent Pension Reform Analysis
A group representing several large public employee unions released a statement last week that mischaracterizes comments by California’s two largest public pension systems about a study of pension reform issues by California Foundation for Fiscal Responsibility. Continue reading
Local Governments Would Save $2 Billion Annually If Employees Shared Pension Costs
California taxpayers would save $2 billion almost immediately –and billions more in the future — if local government employees paid half the annual cost of their retirement benefits, according to a study released today. Continue reading
KXTV News 10 Video: Comparing public retirements to private
The debate over public pension reform is about to get even hotter. California’s state and local government workers make salaries similar to those at large private-sector employers, but get significantly higher retirement benefits. Continue reading
COMPARING PUBLIC AND PRIVATE EMPLOYEE COMPENSATION AND RETIREMENT BENEFITS IN CALIFORNIA
Read the latest study comparing public and private employee compensation. Continue reading
Stanford University: Local Unfunded Liability at $137 Billion (Feb 2012)
“The unfunded liability for all (local) independent systems is $175 billion. At a 4 percent risk-free discount rate the total increases to $195.2 billion. When including market performance over the past 2 years it is estimated these systems have roughly $200 billion in unfunded liabilities. “ Continue reading
Stanford University: Pension Costs Squeezing State Budget (Dec 2011)
“California’s pension plans are dangerously underfunded, the result of overly generous benefit promises, wishful thinking and an unwillingness to plan prudently. Unless aggressive reforms are implemented now, the problem will get far worse, forcing counties and cities to severely reduce services and lay off employees to meet pension obligations.” Continue reading
Legislative Analyst’s Office: Public Retirement Benefits: Options for the Future
PowerPoint presentation with data showing how retirement costs have grown as a percentage of the state General Fund. Recommends benefits changes to align public and private retirement benefits more closely. Continue reading
CATO Journal: “Public Sector Unions and the Rising Costs of Employee Compensation”
“The public sector pay advantage is most pronounced in benefits. Bureau of Economic Analysis data show that average compensation in the private sector was $59,909 in 2008, including $50,028 in wages and $9,881 in benefits. Average compensation in the public sector was $67,812, including $52,051 in wages and $15,761 in benefits.” Continue reading
Joe Nation, Stanford Institute for Economic Policy Research: The Funding Status of Independent Public Employee Pension Systems in California
“The unfunded liability for all (local) independent systems is $175 billion. At a 4 percent risk-free discount rate the total increases to $195.2 billion. When including market performance over the past 2 years it is estimated these systems have roughly $200 billion in unfunded liabilities. “ Continue reading
Alicia H. Munnell, Jean-Pierre Aubry, and Laura Quinby, The Center for Retirement Research at Boston College: The Impact of Public Pensions on State and Local Budgets
“Whereas public plans are substantially underfunded, in the aggregate they currently account only for 3.8 percent of state and local spending. Assuming 30-year amortization beginning in 2014, this share would rise to only 5 percent, and even assuming a 5 percent discount rate, to only 9.1 percent… Continue reading
