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Politics : Mainstream Politics and Economics
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To: research1234 who wrote (38331)2/3/2013 11:14:50 AM
From: Wharf Rat  Read Replies (1) of 85487
 
"But PV of Cal pensions ought to be offset by PV of tax revenues ID'd for pension purposes to see what the net picture looks like"

And thus the myth was born... we can't count that, eh?

:>)

Myth: PERA has an unfunded liability of $4.9 billion that taxpayers just can’t afford.

Fact: While PERA's General Plan does have a $4.9 billion unfunded liability, it is not due tomorrow. In fact, that liability is spread out over decades--the next 19 years in the case of the General Plan, 27 years for the Police & Fire Plan, and 19 years for the Correctional Plan.

It’s like the unpaid portion of a mortgage. Few homeowners have enough cash on hand to immediately pay it all off. That's why they make monthly payments. It's the same with PERA. Regular member and employer contributions, and most of all, investment growth over time, are expected to erase that liability as the plans approach their full-funding dates. (2012 PERA Comprehensive Financial Report)

And it's not like PERA is ignoring that liability.Our history shows that we address problems as they occur, with a positive effect on the state's bond rating. We have addressed funding shortfalls with periodic benefit and contribution adjustments rather than letting problems get out of hand.

mnpera.org
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