"The metrics are in and others are beginning to recognize how deep the pension liability hole is for not only California, but the entire nation. It's time for the public employees and Legislature to work together to develop a long-term solution for these public pensions that are currently unsustainable."
- Senator John Moorlach (R-Costa Mesa)
State, Local Governments Have Funded Only 35 Cents of Every Dollar Committed to Pensions
The Daily Signal
Friday, October 14, 2016
By Rachel Greszler
"$5.6 trillion... that’s how much a recent report from the American Legislative Exchange Council, or ALEC, estimates state and local governments across the U.S. have promised to their employees, but can’t afford to pay."
"Normally, if an employer promises its workers more than it can pay, its workers lose out, but that’s unlikely to be the case here."
"Since most state and local pension promises represent legal obligations, it will be state and local taxpayers who bear the burden of their governments’ unfunded promises."
"Despite the fact that pensions are part of employees’ compensation, and legal obligations, many state and local governments have effectively treated them as slush funds, available for tapping whenever other spending takes political precedence."