Ed Mendel at CalPensions presents a clear view of the current pension situation, but it remains to be seen exactly how CalPERS plans to deal with the crisis. It's one thing to acknowledge that the problem exists; quite another to embrace reforms that would correct it.
Click HERE to read the report buy Ed Mendel
CSPP core member, David Brown, points out that even Ed Mendel has accepted that 80% funding is 'adequate'. Dave's reaction to this report is:
"Two things of note. 1. All this trouble is after one of the longest and biggest bull markets in history. 2. The author has bought into the propaganda that 80% is an acceptable level of funding. It isn't."
There is brief mention of the Appeals' Court cases still to be ruled on by the state Supreme Court, but with the 'warning' that even if they do modify or end the so-called California Rule, local governments might not make any much needed changes. We can only hope that if this possibility of reform measures becomes available, public pressure on local elected officials will force them to act.
If they won't, we need to replace them with new officials who will. In the upcoming supervisor elections, we should all ask the candidates to provide a definite plan of action if the state court does finally acknowledge that the California Rule is totally unsustainable and must end. Please attend future supervisor debates and ask that question.