Friday, December 23, 2016

CalPERS Tanks, And It Could Cost Sierra Madre Millions

Mod: Sierra Madre is already in the hole to CalPERS to the tune of $9 million dollars, and now that number is about to grow once again. Despite the claims made during last April's election, Measure UUT was basically a fund raiser designed to cover Sierra Madre's serious debt problems, with its CalPERS nut leading the way. Now that CalPERS has once again failed to hit its projected return on investment, the taxpayers are going to have to dig even deeper. Will this city now need to raise its taxes again?

CalPERS Cuts Investment Targets, Increasing Strain on Municipalities (New York Times link): The board of California’s state public pension system, CalPERS, voted Wednesday to lower expectations for future investment returns, a step that will increase pressure on the budgets of towns and cities across the state.

CalPERS, a giant with roughly $300 billion in assets, has long been a bellwether among America’s thousands of public pension funds because of its sheer size and influence in the investment industry. It manages the investments for more than 1.7 million current and future retirees, making it the nation’s largest public fund outside the federal government. CalPERS’ move to lower its investment expectations is likely to prompt pension systems in other states to do the same.

“This is very monumental for the organization,” one trustee, Richard Costigan, said at a public meeting just before the vote.

With the move, CalPERS is changing its business plan, so that investment returns will cover less of the cost of retirees’ pensions than previously. That will force local governments to pay more, either through higher taxes or reduced public services. Public workers in California will have to chip in more, too.

At the same time, the move has little chance of satisfying critics of public pension systems who have argued for years that the sector’s methodology is dangerously flawed — not just because many investment projections are overly optimistic, but also because pension plans use those projections to calculate their liabilities, violating basic economic principles.

CalPERS moves to slash investment forecast. That means higher pension contributions are coming. (Sacramento Bee link): The cost of that government pension is about to go up again, for California taxpayers as well as some public employees.

CalPERS moved to slash its official investment forecast Tuesday, a dramatic step that will translate into billions of dollars in higher annual pension contributions from the state, local governments and school districts.

Employees hired after January 2013, when a statewide pension reform law took effect, will also have to kick in more money. Older employees could see higher contributions, too, although that would be subject to contract bargaining.

CalPERS’ Finance and Administration Committee voted 6-1 to lower the forecast from 7.5 percent to 7 percent in phases over three years, starting next July. Although the committee’s vote must be ratified by the entire board Wednesday, most other board members indicated they support the move as well.

It would be the first adjustment to the forecast in four years.

The move is a recognition that investment returns are falling and that the California Public Employees’ Retirement System, which is just 68 percent funded, needs higher contributions from government agencies to solve its long-term problems.

Mod: By "government agencies" they're talking about places like Sierra Madre's City Hall. Just in case you weren't aware.

sierramadretattler.blogspot.com

76 comments:

  1. Interesting that the CalPers board would project a lower return in investments. The stock market has been increasing volume since Donald Trumps winning the election.
    That board doesn't sound honest.
    Sierra Madre has re- worked the percentages of CalPers; or as it has been said, Social Security for Public Employees that are new hires. Council Member Delmar fought for, and finally received other Council Members support.
    It has long been wispered that the Council will push for somthing along the lines of a Property tax increase.
    This vote by the CalPers board will give the necessary excuse of additional increases in addition to the the UUT increase .

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    Replies
    1. The stock market has been increasing in volume since Obama was elected. Trump had nothing to do with it.

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    2. Actually the stock market has been increasing in volume since Obama won the election. Trump has nothing to do with it.

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    3. Trump takes credit for a lot of things he had nothing to do with. He is a vain and narcissistic blowhard.

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    4. The stock market reached all time highs the very minute Trump became Pres elect. Get real people. Obama is a fail and the Dems are a fail. People are done with the elite left.

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    5. The ONLY reason the stock market has rallied over the last 8 years is because the fed's rate has been kept at an unprecedented zero throughout with minor deviations. And now, of course, with Obama leaving office, the Fed has been trending upward to throw the economic risk on the next president.

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  2. The system was Never sustainable. If we had switched to the Sheriff the damage would have been must less.

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    1. Meanwhile the former head sheriff just was in court again this on his guilty plea for lying during the Federal investigations into civil rights violations of the county jail...

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    2. Thank God he's gone and Jim McDonnell is running the LASD.

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    3. I had lunch with Sheriff McDonald. It was great being able to talk with him outside the political arena. Lunch with the Sheriff and a Pasadena Police helicopter ride were an auction item at the Hillsides Home for Children benefit. I totally support him.

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  3. Let's keep things simple. We all know California is a 1-party state. The Democrats bought the loyalty of the powerful public employee unions by paying them unsustainable salaries, pensions and benefits with taxpayers' money. That's why the problem will never be solved and why taxes will keep going up. It's all about maintaining political power. I'd like any card carrying Democrat to explain where I'm wrong.

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    1. If you are a Democrat you give it to the unions. If you are a Republican you give it to Wall Street. Which is why the stock market is up so much. Pick your poison.

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    2. 8AM - Prepare to gush. Putin loves you!December 23, 2016 at 8:19 AM

      Putin says Democrats sore losers, praises Trump
      https://www.yahoo.com/news/putin-says-trumps-statement-nuclear-weapons-no-surprise-100313855.html

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    3. Actually almost every sentence you typed is wrong

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    4. It's called Tea Think. It is a form of brainwashing. Much of it imported.

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    5. Yo, 8AM! You're 2 for 2!December 23, 2016 at 8:51 AM

      Saddam Hussein's daughter heaps praise on Trump: 'This man has a high level of political sensibility"
      http://www.rawstory.com/2016/12/saddams-daughter-likes-the-cut-of-trumps-jib-this-man-has-a-high-level-of-political-sensibility/

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    6. "Let's keep things simple." Thanks, you patronizing jerk.

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    7. Trump is getting hit on so many fronts it is unbelievable . The inauguration is turning into a giant fiasco thanks to all our friends in the entertainment industry. So he tweets about starting an arms race and immediately gets called on it by about a million people. His kids are getting hit right and left for trying to sell the presidency. Putin comes out and says he is wonderful and the Democrats are sore losers.
      His lies about his landslide are just pathetic. This is like nothing anyone has ever seen before.

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    8. I've never seen any politician intentionally make enemies through their choice of words and actions as Trump does. He has brought it upon himself with lies and inflammatory hate mongering. Obama wasn't perfect but he was the best statesman America has had in over a generation.

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    9. So far no one has bee able to refute what 8:00 said. Name calling is not an argument I'm afraid. Try again.

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    10. Sorry. It wasn't that interesting. The best way to get attention is earn it.

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    11. Name calling, 1:43? Like Putin's Puppet Trump does?

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  4. I'll take wall street. I agree with poster 8 a.m.
    The Sierra Madre Council knew that the UUT would not be sustainable to keep the town as a full service city. That the monies would only assist for a year or two.
    Why is it tat so many City Employees "retired"; only to pick up work elsewhere? In order to continue CalPERS retirement investment. Sierra Madre can't afford to keep up.
    City services have been streamlined, very little else to cut.

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    Replies
    1. You'll take Wall Street… But isn't that the whole point of the pension money? That is invested with Wall Street? Not any unions' fault when wall st comes up short

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    2. Trump's handlers would love to hand over a trillion or so dollars in Social Security money to Wall Street. The same people who gave us the Bush Recession are now about to take another crack at destroying something that millions of people depend on. CalPERS might suck, but these people are even worse.

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  5. In your guts you know he's nutsDecember 23, 2016 at 8:58 AM

    Trump Tweets Apparent Call for More U.S. Nuclear Weapons
    http://www.nbcnews.com/news/us-news/trump-tweets-apparent-call-more-us-nuclear-weapons-n699221

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  6. The sore looser comments are degrading an otherwise useful Blog.
    I agree Trump is appalling. But the voters and the voting system deemed him better than any alternative. That tells you all you need to know about the alternative candidates.How sad is it to loose against Trump ! The closed-minded attitudes that produced such tarnished alternatives to Trump may have something to do with it. And the whining looser comments seem to confirm it.
    So get a grip. Promote a candidate with real merit and less baggage .Such a candidate may have had an easy win this time. Now back to the whining.It doesn't change the outcome, it sounds pathetic and it won't help us in 4 years time if you are all still name-calling and wailing.

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    1. Actually Trump lost by three million votes.

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    2. Trump Actually Committed Real Crimes And No Democrat Will Say It - They All Surrendered. Already.
      Self dealing.
      Tax fraud.
      Bribery (Bondi - 2 counts)
      Charity fraud.
      These are the crimes any 1st year law student could convict him of. I am sure he did other crimes I don't know about.
      The problem is not one single Democrat has the courage to say Trump should be prosecuted.
      We (Democrats) are so busy surrendering, we are dying in the retreat stampede. Dying by the thousands.
      WILL ONE DEMOCRAT IN THE HOUSE OR SENATE GO ON NATIONAL TV AND SAY DONALD TRUMP IS A CRIMINAL???
      Every single Republican has been saying this about Hillary for years, and it worked.

      WHERE IS THE COURAGE?

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    3. Remember, all of the Republicans lost to trump too. He would have gone independent if they didn't submit the nomination

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    4. Trump was a Manchurian candidate. He is an agent of a hostile foreign power. This will quickly become a source for one of the greatest crisis in American history.

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    5. Jesus! The sky is falling! He won, just because you don't like the outcome does not mean you are right. Stop it! Grow up!

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    6. Actually Trump lost by 3 million votes. He lacks the legitimacy of a president who received the support of the majority of the American people. If the reverse was true you'd be having a cow right about now. It is also amusing that those who spent the last 8 years slandering Obama are now such fervent upholders of the American presidency. I for one am appalled by this foul mouthed stooge of Vladimir Putin, and will continue to speak out whenever I can.

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  7. Your "guy; was a worse crook. That is the whole point. The electorate aren't as stupid as you think.They chose the lesser of 2 evils. Your candidate was your choice.Bad choice s it happens. Learn and move on .org?

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  8. 8:29am. Awfully early to drink; put the bottle down. Your having hallucinations.

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    1. "You're." A lack of a formal education and Trump support go hand in trotter.

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  9. 9:44am. Where's the truth? The Democratic Party has chosen to remain in the past and is being represented by those in their Golden years. I expect D. Trump will serve four years. Eight years if he decides the the Country is still bleeding from being over regulated. The Democratic Party should do some soul searching, time to realize tantrums don't work.

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    1. Trump throws tantrums everyday. Did you hear the latest? Nobody wants to play at his inauguration. Not one single star. Even Kiss said no. Kiss! Trump is tweeting like a stood up prom date.

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    2. 10:21 - a serious question for you. Can you give an example of 'bleeding' overregulation? Not picking a fight just asking a simple question that you might cite and answer too for perspective.

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  10. The Sheriffs CalPERS will not be sustainable, look what happening with the HighWay Patrol negoations. Glad Chief Bacca had 11 jurors vote not guilty, the 12 wouldn't budge. The Feds need to clean up their own act.

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    1. Baca ride to get taxes raised to pay for it all

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    2. I thought that was one of the pluses for hiring the Sheriff's Dept. That is we didn't have to pay the CalPERS. I'm confused, what does Bacca's trial have to do with CalPERS sustainability? Please inform me as to what is happening with the Highway Patrol negotiations, I'm interested in learning the facts.

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  11. How many years will Sierra Madre continue to be sustainable?

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    Replies
    1. Cost of ice cream at mother moo's is not sustainable

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    2. It is for Mother Moo.

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  12. What works is tapping into the smoldering hatred the uneducated have for the educated, blame the educated for keeping the uneducated down, and making promises to the uneducated with no intention whatsoever of fulfilling those promises. That's what works.

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    1. Frighteningly true.
      Might be a good idea to keep higher degrees secret, and start talking about "book larning" as being inadequate.

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    2. Fascist movements usually draw their greatest support from the lower Middle Classes.

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  13. 11:06am. Since the subject line in todays post: CalPERS and increase with the UUT, why not begin with PURPA enacted in Nov. 1978.

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  14. GO ROCKETTES !!! Kick em high. Should be a nice inauguration.

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    Replies
    1. Fine example for little girls.

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    2. Some of them have now complained to their union. A number of them might not show up.

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    3. Well one way to break up that union is by grabbing it in the pu$$y

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    4. No kidding 12:52.
      So we're telling them, "You'll never be president little lady, but you can put on a bathing suit and dance."

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  15. HAPPY FESTIVES DAY

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  16. Life is an education. The uneducated dont harbor ill will towards the educated but neither do they have "doors" opened to them. You get what you pay for.
    Common sense must be DNA related.

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    1. I just thought that everyone who comes through the American educational system, up to 8th grade anyway, learned the difference between fact and opinion, and valued honesty - or at least knew they were supposed to value honesty.

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  17. Just as Putin said Democrats are losing on every front and looking for people to blame everywhere," he said. "They need to learn to lose with dignity.

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    1. Ain't no wrestling match, peoples' lives are at stake.

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    2. 12:30 Screw Putin and you. If you hate America so much go to Russia with Snowden and the rest of the traitors.

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    3. 12:30, are you really quoting Putin as some kind of moral example?

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    4. I'm glad Snowden did what he did. He exposed operators within the government who are traitors.

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    5. Unless trump shows his birth certificate he not a legitimate American.

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    6. I think he came from the swamp.

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  18. Go World.....we need to march against the tweeting twit who can create a nuclear war in the middle of the night to please puttie.

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  19. Abstention vote from the Obama Administration today in the United Nations basically tells Israel to go pound sand.

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    1. Well they got plenty of that.

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    2. Disagree. What it says is, "We don't want to take sides on this one."

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  20. How lovely the view from the TT penthouse of the atomic cloud(s). Just sink down under the water in the gold plated everything bathtub and watch the world fry.

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  21. 12:47pm. That would be the North Korean bad hair comb over guy. You know , the guy Hillary sold the 20% Uranium needed to complete "his" nukes. Iranian Deal was another good one. Oh; I am repeating again.again.again.

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    1. The saddest part of it is none of what you say is true.

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    2. 12:47

      You're at least rambling again. He coherent to supportable argument and perhaps once is enough.

      By the way, Iran has the legal right to develop nuclear power. If people like you stop trying to control everyone else at their expense there would be a lot less terrorism.

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    3. Truth is not an important consideration to the Trump supporters.
      It's peculiar just how much they have in common with extremist Muslims.

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    4. It's tough times we live in- being stuck between rich and religious extremists on all sides

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  22. been a great day if Calpers collapses

    of course it's gonna be propped up, those that vote on salvaging it are those that benefit from it and the taxpayer gets the shaft

    it's nothing but a ponzi scheme defrauding the public - gives a guaranteed salary to retired public employees

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