Out of the Mouths of CalSTRS
Steven Greenhut: California’s pension systems are running enormous unfunded liabilities — i.e., the estimated debt to pay for current pension promises. But the pension funds want us to believe that there’s no problem and that there’s no need for additional contributions. Higher contributions from governments would spotlight the underfunding and excessive pension problem. Unions and pension funds like to point to the small percentage of the state budget that goes directly to funding pension shortfalls as evidence that there’s no real pension problem. But don’t take the word of pension reforms, here are the words of top CalSTRS (California State Teachers’ Retirement System) officials:
In other words, yes, California taxpayers owe teachers and retired teachers another $114 billion to make good on their pension promises. But don’t worry about it, CalSTRS will figure out a way to “manage” it.*
*They will pray to their lucky stars for a resurgent economy that will cover up the pension debt for another couple of generations and if that fails, they will insist that the rest of us — stuck with a crummy and upside-down Social Security system — will pay higher taxes and not complain about it.
DEC. 27, 2011
May 26, 2013