Wednesday, March 08, 2017

Two hundred? Two Million Eventually

CalPERS set to slash pensions for nearly 200 workers

CalPERS wrote a letter to the cities in February asking them to make good on the debts LA Works owes to the fund.
“Our view is they have a moral and ethical obligation,” CalPERS General Counsel Matthew Jacobs told the CalPERS board in February. “They’re the folks who put this thing together, and it’s their employees essentially.”
The cities – Azusa, Covina, Glendora and West Covina – say they are not responsible for the debt because the LA Works joint powers authority was created in 1979 as a distinct organization outside of their control.
“While it is regrettable that the consortium has reached this point, its obligations to PERS are not the obligations of the city of West Covina,” wrote Kimberly Hall Barlow, an attorney for the city of West Covina in a Feb. 14 letter responding to CalPERS final request for payment.
The organization that used to be LA Works faces huge bills if it wants to fund completely the pensions of its former workers.
It could pay the $406,000 it owes CalPERS to catch up on its delinquent bills and then revive regular contributions to the pension fund. Or, it could pay a $19.3 million termination fee that CalPERS would invest in a low-risk pool to provide retirement security to the former workers.

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Seems the  projected returns assumed were too high.  If only someone could have seen that coming.

Eight years ago?  Wow:

http://exurbannation.blogspot.com/2009/11/calpers-crush-part-1.html



Read more here: http://www.sacbee.com/news/politics-government/capitol-alert/article137060213.html#storylink=cpy
 
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30 comments:

Lawyerliz said...

406k doesn't sound like so much. But Dawg, I can't recall a single tax or fee you were wiling to pay.

Lawyerliz said...

My comment got eaten!!!

Lawyerliz said...

Am listening to CLE. 8 out of 10 big firms get hacked to the extent of data breach. M & A details are interesting for example. Glad I'm out of the biz. When I was admitied to the bar, it wasn't anticipated that a prospective member was going to be a computer invective and that was going to be relevant.

Lawyerliz said...

1 million pieces of malware are loosed upon us per year.

Lawyerliz said...

Imbecile. Damned spell check. I admit there is invective involved.

Rob Dawg said...

$406k is to catch up. $19.3m to settle the underfunding.

Even if CalPERS returns to sustainability CA is still screwed. Too many retirees are taking their pensions elsewhere crushing any economic multipliers.

Rob Dawg said...

Later today; ADP +298,000 Feb jobs and the small Q4 productivity gains. Both are great news.

Now Liz knows what it takes to please me. 🍦🍰🍭🍪

LBD said...

Good Morning!

Creative accounting will fix it, if it fails the taxpayer take care of it.

Cinco-X said...

I'd never be able to run that far

Lawyerliz said...

Yay dawg.

Lawyerliz said...

Are these the cities with the over million dollars median house prices?

Lawyerliz said...

Like your new cat!

Lawyerliz said...

Ok are we now in upward wage pressure territory?

LBD said...

No, hours worked still down over last year. Indicates to me plenty of workers to fill less hours. Smoke and Mirrors.

Rob Dawg said...

The four cities are all around $500k median price.

Not just a new kitteh but new tag line for the kitteh in the sidebar.

Yes, wage pressure.

Mike said...

wage pressure you say?? Well then meet "Pepper"..the SoftBank robot..

mornin' everyone..


http://www.softbank.jp/en/robot/

Rob Dawg said...

No, hours worked still down over last year. Indicates to me plenty of workers to fill less hours. Smoke and Mirrors.

Mildly disagree. Fewer hours might be workers working on their own terms.

And now some bald conjecture:
Workers get a zero hours schedule from their on-demand employer. They go get another job. When things were tough the next time they might juggle two jobs to keep options open. Now they might be comfortable enough to tell the less reliable employer goodbye. Fewer more regular hours result.

Mike said...

Lower hours could have been the impact of "Day without an immigrant" also..

//snark

LBD said...

As employees have become less reliable and minimum wages increase many lower end jobs that hire trainees are being dropped for more productive trained employees. From an article last week about Wendys ordering kiosk. Turn over just moves faster. IMO

Lawyerliz said...

I have only one more Cle credit to do.This latest was super boring and a whole lot of nothing.
I am convinced that everything is so complicated that it is impossible not to commit malpractice.

Lawyerliz said...

Why are you guys trying to make a bad thing out of nearly a 300k increase?

Mike said...

I used to do some volunteer stuff with LA Works back in the day (if I'm thinking about the same organization). They would coordinate neighborhood clean-up days and such for individuals and companies to participate in.

Used to be pretty fun way to spend a Saturday morning..

Mike said...

nearly a 300k increase?

Greatest president for jobs that god ever created..hahahaha

Lawyerliz said...

T didn't do it, but I am not so bitter as to wish for fewer jobs, just so he is discomfited. Let this number of job increases continue indefinitely!!

LBD said...

LL, your comment was about wage inflation. More jobs less hours is a poor guide if they are PT. Employment by worker could show a very different picture. More realistic in my in opinion.

Technology is Trumps biggest set back but better then just waving good bye to whats left as past Presidents have.

Lawyerliz said...

Well are there fewer hours on the old jobs that weren't created this past month?

LBD said...

I don't think any data of direct reality is keep leaving it all to interpretation. Simply put Biz XYC needs 500 labor hours a week to operate. Poor equipped workers need training and supervision, Big expense. Experienced workers needs way less supervision little or no training much more productive paid a few pennies more. Today we are seeing technology improve productivity even more with less man hours. More jobs less hours worked say there is plenty of workers.

I read yesterday where Nebraska UE is rising losing 2722 job more then new ones so far this first quarter. It really shows here locally in the rental market soon the RRE sales will stall, Mall has another chain store closing Penny's on the list again and Payless shoes has 2 stores I a betting the Mall store gets cut. This is pretty big for this small town. At bowling some are starting to see it and a Friend said I called it 3 years ago. Wonder where I got those ideas from? Thanks everybody for the education.

Cinco-X said...

http://dilbert.com/strip/2017-03-08

Cinco-X said...

Doing some work on an IoT product development program. A new requirement came down this morning: a hack proof mic mute... Hmmm

Cinco-X said...

https://fivethirtyeight.com/features/the-eight-power-centers-of-the-trump-administration/