Across the United States, a large number of public employee pension funds face the serious risk of running into insolvency because politicians have promised millions of state and local bureaucrats far more generous retirement benefits than they are capable of paying. Many of these politicians are more than willing to negotiate incredibly favorable contracts […]
Without fiscal reform, cuts to basic education programs are imminent.
As part of a year-long national campaign promoting my book California Dreaming: Lessons on How to Resolve America’s Public Pension Crisis, I’ve been saying that it’s impossible to have both public governance of defined-benefit public pension plans and responsible management of these plans. Politicians face strong perverse incentives to mismanage the plans for their […]
The actuarial firm Cheiron recently projected the future yearly pension costs for San Jose’s police and firefighter pension plan. Cheiron wrote: In the worst scenarios, the City’s aggregate contribution rate can exceed 110 percent of payroll. In the best scenarios, the City’s Tier 1 rate can drop to 0 percent, leaving a relatively small […]