Another Public Pension Fund Runs Out Of Money

   Do not think about, write about or deal with  human behavior without determining the effects of incentives.

   Another ultra-liberal news interview show has been canceled. Piers Morgan’s, “I take a  liberal position on everything” show was boring because he was relentless to everyone who disagreed with him and toadying to those who agreed and was boringly predictable. I only watched small portions because I could predict the questions.

   It is obvious that the only thing mankind needs to protect itself from is the expansion of the government. All animals are equal, but government workers are more equal.

   I’m thinking of starting a Boxer fan club. Boxer was the relentless worker in Orwell’s Animal Farm  who believed everything Napoleon (the leader) said. After working himself to near death and unable to escape because of his weakened condition, Boxer was sent to the knacker’s (dead animal processor) yard to be rendered into dog food.

   On days when I can look in the mirror, I’m liable to say to myself, “You don’t look like an old work horse.”, but the differences end. I’m Boxer, male, white, all-life worker, the very person degraded by the academics who live on my money. Boxer. If only they would keep taking my money and telling me how stupid and immoral I am, my life will continue to be full of joy.

California’s teacher pension broken

Feb 22, 2014 by Staff

The state teachers pension fund faces a $71-billion shortfall, but Gov. Brown is willing to wait until next year to craft a remedy.

WEST SACRAMENTO — When the glass-sheathed headquarters of the California teachers’ pension fund opened five years ago, it was supposed to help anchor developments along the blighted riverfront on the capital’s outskirts.

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    Ah yes, social and economic justice by placing government/union buildings.

But as Jack Ehnes, the fund’s chief executive, looked out from a top-floor conference room on a recent afternoon, he could see patches of empty land where nothing had been built.

Construction plans, he said, took a huge blow from the recession.

The same could be said of the California State Teachers’ Retirement System, or CalSTRS, which Ehnes has run for more than a decade. Today, the pension fund is one of the biggest financial problems in a state with more than its share of money woes.

Gov. Jerry Brown and legislative leaders are pledging to repair and replenish the $181.1-billion retirement system that is supposed to finance more than 800,000 retirements for public school teachers, administrators and community college instructors. Hearings on possible solutions began in the Capitol on Wednesday.

The second-largest public pension fund in the country, after California’s primary pension system for public employees, it faces a $71-billion shortfall that worsens by $22 million every day, according to pension officials.

Ehnes said stock market gains won’t fix things, that more money must come from the state, school districts, school employees, or all three.

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    When they say money from the state and school districts they mean the taxpayer.

Without corrective action, he said, “this plan will be insolvent in 30 years,” when a young teacher hired today would probably retire. At that point, the full cost of teachers’ pensions would fall squarely on taxpayers’ shoulders, raising the specter of tax hikes or cuts in government services to compensate.

The Legislature and governor must approve any increases in contribution rates, but negotiations will be fraught with political peril, especially in an election year.

Pension officials fault the recent recession for much of the shortfall, but lawmakers and governors — many of whom benefited from teachers’ union campaign contributions — took actions over the years that helped set the stage for today’s problems.

In particular, when the pension fund was bursting with money 15 years ago, they boosted teachers’ pension benefits while simultaneously reducing the state’s contributions.

David Crane, who was appointed to the fund’s board by Republican Gov. Arnold Schwarzenegger in 2006 but never confirmed by Democratic lawmakers, blamed the state’s leaders.

“These problems at CalSTRS are caused entirely by politicians making promises and not setting aside money to meet those promises,” Crane said.

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   Yep, that’ll do it. More money from the taxpayer because the Elite deserve the best because they keep failing to educate. That’s invaluable.

To order my novel, “Days of Songs and Mirrors: A Jacobite in the ‘45”, click here.

Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

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