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Stock Market Swoon Hammers Cal PERS.

Original post made by Citizen Kane, Vintage Hills Elementary School, on Feb 3, 2009

If the stock market does not recover, the California Pension Retirement System will demand more money from cities and counties.
Please read the Wall Street Journal article below.

Web Link

Just google WSJ cal pers and you'll find the bad news.

Comments (5)

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Posted by Dan R
a resident of Del Prado
on Feb 4, 2009 at 1:05 am

There is a quote in the article from an official with the Burbank School District. Is this the fund that provides retirement pay to our Pleasanton teachers? This article is several months old but should we be expecting the other shoe to drop on the matter as well? Has anyone seen info from PUSD abut this?

This puts me back to my position that there are no guarantees in life (unless you are a union member.) There is no one for me to ask to shore up my 401k losses. My family and I will have to bear the burden and the consequences ourselves because that is our retirement.


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Posted by Citizen Kane
a resident of Vineyard Hills
on Feb 4, 2009 at 5:15 pm

The teachers have a different fund.

I don't know the name but i'm sure it's value has gone way down.

According to the latest budget, 9% of payroll at PUSD goes to their pension.

Will the teachers be asked to contribute more or will we be on the hook.

Frankly, I don't know.


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Posted by Neighbor
a resident of Another Pleasanton neighborhood
on Feb 4, 2009 at 5:50 pm

Traditionally all government employee pension funds have been fully guaranteed by the employer (the State of California in this case). If invested funds reduce in value, the agency (and the tax payer) is still on the hook for the full amount. Of course it works the other way too, but not this year!

It's often been said that the taxpayer pays for every government service at least twice through administration fees and actual service costs. Of course, if you pass a tax on yourself to fund something that is traditionally covered by another tax you pay for it at least twice again.


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Posted by Richard
a resident of Downtown
on Feb 5, 2009 at 8:35 am

Cost reductions have been a fact of life in the private sector for some time now. Government services are well behind the curve on this. No one likes to see it happen, but there will have to be some substantial cost reductions implemented. A new tax is simply the wrong approach.

I'm going to borrow a quote that I read elsewhere on this site, because I thought it made a lot of sense.

"It's often been said that the taxpayer pays for every government service at least twice through administration fees and actual service costs. Of course, if you pass a tax on yourself to fund something that is traditionally covered by another tax you pay for it at least twice again."


 +   Like this comment
Posted by The Jackal
a resident of Vintage Hills Elementary School
on Feb 5, 2009 at 11:44 pm

No more increase in taxes already! The state and CA cities have to cut headcount we are buried under this burden of their retirements and benefits already.

The teachers pension has asked them to contribute for the first time in decades, I heard somewhere.

Govt at all levels fails us by raising taxes instead of finding new ways to do things and/or eliminating/overhauling programs including teacher compensation plans.

Enough already, figure out what to do with less money. That is whay companies and households are doing to survive. Sheesh Dr. Casey, how much to we pay you and you hold these ridiculous meetings asking the public for answers? You tell us the plan to make it work with the new budget, you work for us right?????

Oh, in case I left anyone guessing my position on the school budget shortfall, allow me to clarify: NO PARCEL TAX!!

And I am a parent with kids in PUSD schools. There is much fat and waste at both the admin and in the teacher contracts in my opinion.









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