It’s no secret that insolvent pension funds have been a major issue in San Diego, and more broadly, California. California Republicans have fought to minimize the chaos surrounding pensions costs, but Democrats continue to be unproductive and idly sit by as the issue worsens.
The issue of insolvent pension funds transcends the area of San Diego. Traveling to Northern California, to the district of Stanislaus, insolvent pension funds are plaguing the area. Due to a steep increase in pensions and additional employee benefits, public services are being forced to close because the benefits make up the majority of the payroll.
Where exactly is the increase in pension cost coming from? The California Public Employees Retirement System, more commonly known as CalPERS. Attempting to recuperate lost investment funds from the recession and to minimize “unfunded actuarial liability” (UAL), CalPERS has been increasing costs at an absurd rate.
Since the 2015-16 year, costs have been successively increasing by about $200,000-$300,000, with the most current UAL payment being $842,404. Yet, the $842,404 is expected to reach a million dollars in the following two years.
What are the results of the ridiculous increases? Critical public services will be shut down. In light of the recent wildfires, Stanislaus County, a rural and dry area, will have a reduced number of firefighters and fire trucks to offer their services should a wildfire affect the area.
The safety of citizens is now being compromised as a result of the financial mismanagement from CalPERS. Moreover, CalPERS apparently has no desire to help citizens. Their solution to the issue was to raise taxes, once again, abusing their power and placing the burden on working families.
California Democrats are ignoring their constituents’ plea for help with regard to uncontrolled pension funds. They have taken no action and continue to do what is politically advantageous instead of serving the interests of their constituents.
The gap between assets and pension promises continues to extend for CalPERS, equating to a continuance of rising pension costs for California residents. California is plummeting and Democrats are content in allowing it to happen.
