Stanford University’s pension tracker database pegs the market value of California’s total pension debt at $1 trillion or $93,000 per California household in 2015. (see SIEPR video below for a quick summary of the database and how to use it)
In 2014, California’s total pension debt was calculated at $77,700 per household, but has increased dramatically in response to abysmal investment returns at California’s public pension funds that hover at or below zero percent annual returns.
The Pension Tracker database (www.pensiontracker.org) is maintained by the Stanford Institute for Economic Policy Research (SIEPR) and is intended to help localize pension data by providing the ability to look up the market value of pension debt in any locality in California.
The database also provides a comparison of all 50 states, which finds that California has the second highest pension debt in the nation at $92,748 in pension debt per household in 2015. Alaska came in at #1 with $110,538 in pension debt.
Pension Tracker was recently created by Stanford Professor Joe Nation and a team of graduate students and researchers at SIEPR. According to the New York Times, through the work of SEIPR and the creation of Pension Tracker, California is the only state in the nation that provides access to the market value of pension liability on a local basis.
Pension Tracker recently added the 2015 data, and plans to also add data for 2016 and 2017 when it becomes available. The market value of California pension debt is expected to likely exceed $100,000 per household in 2016, based on recent market calculations.
Nation says Pension Tracker is also slated to include data on unfunded liabilities for “other post employment benefit” obligations, which is mostly retiree health care costs.
OPEB obligations are “yet another albatross around California’s neck,” Nation states, noting that in some cases unfunded OPEB obligations exceed unfunded pension liabilities.
The Pension Tracker database is located at www.pensiontracker.org. For the 50-state comparison figures visit: http://us.pensiontracker.org/ or click on the USA tag on the first page.
The pension crisis in Dallas Texas is starting to create panic among beneficiaries and thus the situation is snowballing out of control. The Dallas Police and Fire Pension has been well regarded in the pension world for its diversity among asset classes. The funded ratio was estimated at 64% in 2014. In 2015 a new executive director stepped in, revaluing assets. In the process the real estate portfolio was cut by 31.7% while the private equity portfolio was cut by 20.2% leaving the pension 45% funded.
When the crisis was first announced, the required taxpayer contribution to balance liabilities was estimated at $650 million, this has now increased to $1.1 billion as fund withdraws have heightened the situation. In a six week period in August and September, officers withdrew $220 million from the fund over fear of benefit cuts. The fund may be insolvent as soon as 2027 without major changes. A $1.1 billion would require property taxes to increase by 130%.
The alarming issue is that the average funded ratio for local plans is only 66%. This is the massive crisis ready to explode in our face throughout the nation. Politicians have lied and promised the moon without any realistic management of the economy at any point in time.
The Ultimate Ending Of Every Pension System In History
Political parties have both combined to decieve and create unrealistic dreams in employee benefit plans. The pension crisis started to be exposed in the financial meltdown of 2008. It has been deliberately hidden, but has been picking up steam ever since.
Political games have been played at the federal, state, and local level to delay the inevitable, which is collapse, or at a minimum, a substantially reduce benefits to where they should have actually been set.
Just remember this . . .
Millions of Socialists, have murdered and killed those who disagree with them. The opponents of Marxism have been burnt, tortured, fined, and imprisoned; yet we have not advanced one inch towards this mythical land of perfect harmony and utopia.
The net result has only been war and conflict and to prove that one half the world is composed of fools and hypocrites who just want to be taken care-of, yet willing to surrender their independence while pretending to be independent.
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.