3 ms·
Yes, and it's the same with public employee pensions. It's great to be able to spend (or at least commit) tomorrow's dollars today and then be long gone by the
by caseysoftware 10y ago
Yes, and it's the same with public employee pensions.
It's great to be able to spend (or at least commit) tomorrow's dollars today and then be long gone by the time the bill comes due.
- pjc50 10y agoNo, public employee pensions are supposed to be paid with today's dollars into a separate entity which manages the money in the same way private pensions do. This is why CalPERS has $300bn assets. Those are yesterday's dollars saved for today.
- caseysoftware 10y agoThat's a great sentiment but that is not what happened. Or (at minimum), it was massively underfunded. With regards to CalPERS specifically, it was covered here two weeks ago: https://news.ycombinator.com/item?id=13287078 https://news.ycombinator.com/item?id=13287078 and from that article: "For every $100 the city paid a police officer in 2016, it had to pay an additional $71 to CalPERS to fund payments to current and future retirees."