The Biggest Problems Facing California’s Pension System (w/ Senator John Moorlach)
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- Опубликовано: 5 янв 2025
- California State Senator John Moorlach explains the most consequential issues that his state's pension system currently faces. The promises that were made to participants in the pension system were made in a time of significant growth, but the time to deliver on these promises is coming at a point where pension fund managers are struggling to maintain high enough returns. California's pensions have increasingly become underfunded--and Senator Moorlach sees its story ending in bankruptcy.
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The Biggest Problems Facing California’s Pension System (w/ Senator John Moorlach)
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You give cops and firefighters and other city employees a pension as big as their salary after 20 years of service. So the individuals live another 40 or 50 years and continue to collect all this time. Pretty soon the number of retirees on such pensions is much greater than the number working at a particular job. Still the cities keep handing out these pensions while operating in the red. What could possibly go wrong with a scenario like this?
Its shear madness. We're all in for a massive wake up call, unfortunately.
I met a guy in Canada who retired at 55 years old, he was 75 at the time and in great health, 20 years retired! Now he is over 80 and still going. If he gets to 90 he could be getting a retirement salary for as many years that he worked. Impossible to keep that up! That was way too early to retire for Canada’s part. They will have a lot of problems too. This early should only be for active jobs (police, fire, EMS and nurses) that being in shape matters. Even still, a healthy 60 year old can keep up with a lot of youngsters. I worked with a 67 year old nurse, she was great...
Your statement is completely false! The other option is disband the police and firefighters. When the cities go bankrupt they can cut or eliminate my pension altogether. It has been to the California Supreme Court already. They have already made a judgment on it .
And these individuals tend to be the fittest so they tend to live longer as well while we from the private sector need to save for retirement since SS that we are forced to pay into won't be enough after we retire at 65 while we continue to fund the pensions and salaries of government workers and politicians.
Bernie Madoff went to jail for the same thing!!!
The whole system was doomed to fail at the moment pension plans boards and politicians allowed individuals to earn the same salary to sit at home as they make going to work.
and for those pensions to depend on the equity markets.
You are so afraid that someone is getting away with something you aren't. The system was doomed when government did not contribute their agreed to portion. The workers did but now ignorant fools like you want to blame the people that fulfilled their portion of the contract.
It is a joke. I retired at 44 years old. I get 3,000/mo for the rest of my life. I left for one year and now I am back collecting pension and full pay. I called it self promotion. The 3,000 goes up every year, it's tied to the CPI. This is in Ut. CA pensions are way higher than mine.
@@66samdog That is why I envy government workers because they can retire early and collect pension but we in the private sector need to work and save a lot of money to be able to survive after retirement at age 65.
@@whatevergoesforme5129 The private sector don't retire!!! We drop dead on the job!!! Public sector is the Kings and Queens.
Trey could fix the pension problem in 5 min.
If they wanted. They are simply not into fixing problems.
1. Cap at 75% pay.
2. Raise min age by 5yrs
3. Pay your own healthcare
4. Hiring freeze
5. No more $ for illegal aliens
6. No more $ for homeless
We must realize that illegals deserve all that the state is giving them. After all, they do jobs that most legal residents will not do. Therefore, we must help them.
J E you probably believe these masks are for our health and safety too huh😂 I can’t w people like you
@@JE-western-rider They don't have to do anything at all and they will be doing better than they could in Latin America...every one of them and us know that!
@@RainsWorldVegasSlots Unfortunately The people voting Trump are the very ones employing them. I happen to work with said employer.
I'll make it easier. No more pensions, 401k's only just like everyone else.
I do like Senator John Moorlach and what he is teaching us here
The problem is its not being talked bout enough. some people have no idea how the pension works
I live in Australia, I can see your system's crash coming...
Nothing that a few pitchforks and torches can't fix.
😂🤣😂
When the city goes bankrupt they can eliminate or reduce their retires pension . It Has already been adjudicated at the California Supreme Court!. The one drawback with that is , you will have thousands of angry retired cops and we all know they have guns and are not very kind !
@@gregspeth152 As long as their wrath is directed at the right people.
Surprised it has lasted this long..Many cities have already reduced
pension payments by 50% and more..With many retirees making 100,000 -
250,000 annually at age 55 its wont work mathematically. Retire and get
out of California and you have a chance..Go to low & no tax states like companies are doing..
Im in California right now....as soon as i retire, im leaving this cesspool .
In New York State the state employees can retire with 50 percent of their "HIGH THREE" pay after 20 years of service or 75 percent after 30 years. That's ridiculous on its face but the even bigger problem is that their "HIGH THREE" includes all of their overtime for their highest earning years, not just their base salary. In NY what happens is that the employees work all the overtime they can get during the last three years before they retire. So, an employee who usually earns $50,000 a year works a lot of overtime and earns $120,000 per year for the last three years and retires making more money in retirement than they ever earned when they were working full time. As a result the pension funds will go bankrupt.
Yup you are exactly right
Wow, an honest politician. Thank you Senator.
A government employee still “contributes” to a defined-contribution plan with tax revenues collected from someone that’s not a government employee.
That referenced “budget surplus” is long gone.
thanks to the plandemic
@@alhi6240 This was known to be inevitable,for decades!
CALPERS IS A SCAM. Glad I took my money out!
I just did as well :)
Thank you for making Mississippi look competent! It’s the grits and corn bread that inserts mental ability in the minds of Mississippians to make
The property tax laws like prop 13 in Calif and Az destroyed the tax base. In Texas we have property revalue to the higher property value even if it passes to an heir, and property tax just recently maxed to 10% increase per year. So plenty of money for schools and teachers here. California needs to repeal the property tax laws that favor the rich heirs who just rent out property at current rates but still pay property tax at 1970s amounts.
We got lucky Trump raised the stock market 50%.
Even though ALL DEMOCRATS said it couldn’t be done
Him Bike ....
artificially .... by Companies snd the government doing by back - buying junk stock
Do you think California politicians care? They're going to get their pensions before the real workers get theirs.
We Californians have to vote more wisely.
I asked my HR department if my pension would be guaranteed as long as I live (13 years ago) and they replied NO, so I took the cash buyout before it wasn't available anymore. I retired from ATT.
People on the pension better wake up it will implode along with the 29tril debt the country is in. We can thank politicians from top to the bottum for the last 30yrs and our ignorance for voting for them and not demanding term limits on all govt fed state and local.
Ironic that the party that think they like big govt is having to limit govt positions and pay to be able to meet budget realities and avoid bankruptcy. I wonder how long it will take their thought process and actions to catch up with facts.
Where does it stop? Much higher taxes. The returns won't be there. Benefits can't be cut. Public sector employees won't contribute more. Therefore more funding is the only answer. When politicians squawk about needing money for schools, fire and police, they're fibbing. They really need it for pensions.
Tons of really bright and talented folks out there and they can't find a solution to this and many other problems (homeless). Can't imagine less police and/or fire personnel. California can't be saved folks....get out if you can.
This is insane to favor the rich property owners.....
Under Prop 13, all real property has established base year values, a restricted rate of increase on assessments of no greater than 2% each year, and a limit on property taxes to 1% of the assessed value.
In Texas we pay 2% and have 10% increases per year. It keeps property bubbles from forming.
You should half the pensions to retirees moving out of state, its not right to pay people who spend there money out of state.
arty Berkhoff They go to Idaho and Arizona.....sell off California real estate and leave.
I'm glad I have no debt and fully stocked up on physical silver, we the tax payer is going to be taxed into ruin when the everything bubble implodes most middle class will lose their homes and cars and their 401-k will take a substantial dive, there will be homeless camps in every county
You know what? It’s called cut expenses. All the corrupt-chickens have come home to roost. There is no way you are going to steal more money from property owners as the property market is headed for financial-armageddon. Live by the corrupt-greedy-sword, die by the corrupt-greedy-sword.
Every left policy boils down to one thing: how to have 5 kg of meat in your fridge and yet find a way to consume 6 kg. This trick has never worked, but the experimentation continues.
You wanna solve the problem... get rid of the unions & vote fairly for honest politicians!
What happens when everybody thinks they're rich. From other people's money
Eventually you run out of other people's 💰!!!
No bailouts.
My union just addressed this. It's not pretty. I'm getting less and adding more.
If they are putting the defined benefit plan that puts the risk on the tax payers, how is government representing us? It seems like they are representing themselves at our expense in California.
I agree that the pensions for some (not a lot) of the government agencies were over done but some were right on considering a 20% lower wage compared to "civilian" wages. And there are a lot of other topics to discuss of gross miss management by both the unions and the elected officials BUT not all agencies get the "great" pensions mentioned. A deeper dive into the subject reveals that the government pension system was at par with the private pension system until two things happened: private pensions eroded (destroyed by hostel corporate takeovers)and some unions misused their position, civil need, etc. and disproportionately em-bettered their pensions. Not all government pensions are the same and few are as good as the general public believes. AND I wonder why the topic of cities and counties not paying or underpaying into the retirement fund (when stock market returns are good) never comes up.
Always invest in people that are criminals and watch what happens to your state... HA!
Why is it that I don't receive a wine basket every Christmas for paying huge amounts of taxes? And I never get a say in how those taxas are spent? Why should they?
And I don't have any tax write offs or loop holes to save me money on my taxes every year!
Easy fix: Enact a federal law prohibiting public employees unions from providing monetary and non monetary supports to any and all political parties and political candidates.
i guess illegals are up
California needs to start a GoFundMe page.
I hope so,with the kind of service I have gotten since1987.
Realize this--government workers take the jobs for the BENEFITS, not the pay. The salaries in government jobs are pathetic, much lower than in the private sector. So, the only way to keep workers is by offering decent benefits.
Absolutely untrue. In almost every sector, public salaries and benefits are higher, and public employee enjoy unbelievable security (regardless the need for their positions).
Government workers should never be allowed to unionize only the private sector should be allowed to unionize but private pensions are garbage now and mostly self funded government pensions should be the same
I suggest that you work as a correction officer, and then complain ... yes caps should be made ... FUND the retirement system every 2 weeks and stop sending the bill forward ... and make said retirement funds to be only used for retirement and never be diverted ...
It isn't just CALPERS, most people choose to overlook Social Security, which has been a Ponzi scheme from its beginning. The SSI "lock-box" jas been empty for a long time. CALPERS back dating benefits is a huge problem, but it has tried to be funded through investment- but yes, the benefits start too early and are too generous. Will have to adjust one, the other, or both to fix this.
@Joanne Woodward don't know anyone personally that gets that kind of pension- that's more a 1st responder and upper admin kind of thing. I have 15 years in CALPERS, over a dozen years ago. Formula was 2% at 60 years based on my average of almost 50k . Also fully vested in SSI. CALPERS penalizes you for SSI, SSI does the same if you have CALPERS. Still have 15 years minimum before retirement. I work with several guys in similar positions. There are alot more like me than guys pulling in those big numbers. But yes, police and fire can retire early, depleting the ranks of people who would advance as detectives or engineers. Need more years paying in, less time to get payments, much like SSI reform back in the '80s.
There's been chat about the State and a 10% reduction in payroll. Cal Pers is independent of Classified Employee Unions..You lied. A 25 year monthly contribution of $400.00 is relevant. Combined with S.S. it's over 4K a month in January for s0me. Hands off!!
Higher taxes are coming.
On and on down into the Jamaica 🇯🇲 song 🎵 by bishop
The question should be WHEN....... not IF.
I see that Senator Moorlach lost his re-election bid in Orange County. Message.... don't try to fix the problem.
Well that was infuriating as usual
This make me feel how secure is investing in negative treasures returns in notes and bonds are at the yields at two percent when true inflation is at 17 to 20 percent. Is this the answer the FED HAS for addressing a controlled financial crash for a restart. Let's go Brandon
Pension funds should have been investing in gold. From 2000 to 2020 gold is up 500%.
Whatever you're smoking, I want some too...
new hires get no pension - save your $$
retired pensioners lose one half, possibly more, we'll keep you posted
You've had a free ride for long enough
If a Democrat state cannot raise Taxes to cover Pensions, a Democrat dominated government will bail them out or change the rules.
A day after bailout, a CA legislature will vote to increase all public sector workers pensions - because they are morally compelled too!
This conflict of interest must be solved constitutionally. Can public worker benefits ever track returns from the economy - perhaps they would be a little less socialist - can't have that - must be able to point fingers and blame everyone else.
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Need to tie the pension payout to where retiree lives. You aren't getting a California col pension when you bail to Arizona or idaho.
That would be a good thing keep those public union members in California
This interviewer talks way too much and throws too much supposition in his questions
This is a grandstanding form of journalism where you have to prove that you’re intelligent before you ask a question
Effectively gridlock of understanding
A question that takes an hour to ask needs to be shortened
This guy needs to learn how to ask a question and then immediately shut up
Will California’s pensions go bankrupt? I hope so!!!
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I worked for 19 years under calpers almost every year the ca. tryed to take money from calpers to put in the gen fund some of the years they got it. the state is the ones that oked all of the changes to the retirement. i worked for schools and bus services my retirement nevered changed from the start . the way math work is 2%Xyears worked =%of wage at retirement. i payed in 7.5% for 19 yr did not take the money tell age 60 . every time i see someone talk about this thay point the finger at the workers as if the workers are the makeing the calls on how this gets done. i for one keeped fath and did what i said i would do came to work every day worked hard keep up my end what about the state doind the same?
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