California Pension Payouts Increase 73% in 2 Years

How does one define a “racket?”

Well, in a takeoff of a similar question regarding pornography, I am not sure exactly how I might define a “racket” but I believe I would know when one when I see it.

So, where should we look to see a “racket” at work?

California and specifically the public pension system in the Golden State. A few weeks back I highlighted what I believe will be “civil wars” over public pension reforms in our country.

A primary battleground on this front will be the hard left-leaning people’s republic on our left coast. Is there any real surprise that California finds itself in such a fiscal mess? Not really.

How bad is the situation in California?

Well, for taxpayers in California that public pension hand in your pocket is reaching ever deeper. KCRA in Sacramento reports that over the last two years those receiving pensions of $100k or more increased by more than 31% and the total dollars distributed increased by 73%.

Tennis anyone?

As reported by KCRA, California Six-Figure Pension Club Grows Exponentially,

KCRA 3 has obtained new numbers showing California’s list of retired government workers collecting six-figure pensions is growing exponentially.

Marcia Fritz, a pension reform advocate and a Democrat, has compiled data from CalPERS, CalSTRS and UC Retirement System, showing the $100,000 pension club has grown from 16,000 names two years ago to more than 21,000 names today.

“Two years ago, the payouts were $1.5 billion,” Fritz told KCRA. The president of California Foundation for Fiscal Responsibility, headquartered in Orangevale, added, “Today there are over $2.6 billion.”

That’s an increase of 73 percent in just two years.

Where did a large number of these recipients work? Higher education. I’ll say it is higher, all right, as in higher payouts. Think all that easy money from government student loans was not traveling right through the system and right out the back door in the form of these ridiculous pension payouts? Come on.

Former Sacramento State University President Donald Gerth is now the fourth highest name on the list, collecting a pension of $295,086, according to records released by the California Public Employees Retirement System.

Sacramento State University has a total of 34 names in the $100,000 club. UC Davis has 223 names on the list, including those working for the UCD Medical Center.

What else stands out? How about the city of Stockton. Yes, that fiscally destitute entity that is now preparing to declare bankruptcy.

The city of Stockton may be facing bankruptcy, but has 98 retired government workers with six-figure pensions.

What do people think of this? Stealing from future generations is not exactly an admirable quality. I would go further than that, though. The public pension system in California and many other cities, states, and towns across America has been little more than legalized theft, also known as, “a racket.”

How should these egregious payouts be addressed?

Many legitimate contracts have been overrun during our current crisis. Shouldn’t the highly questionable public pension systems in our nation prepare for a dose of similar medicine? No doubt. What is this medicine called?

Renegotiation.

Game. Set. Match.

Time to put the “rackets” away.

About Larry Doyle 522 Articles

Larry Doyle embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation. He was involved in the growth and development of the secondary mortgage market from its near infancy.

After close to 7 years at First Boston, Larry joined Bear Stearns in early 1990 as a mortgage trader. In 1993, Larry was named a Senior Managing Director at the firm. He left Bear to join Union Bank of Switzerland in late 1996 as Head of Mortgage Trading.

In 1998, after 15 years of trading and precipitated by Swiss Bank’s takeover of UBS, Larry moved from trading to sales as a senior salesperson at Bank of America. His move into sales led him to the role as National Sales Manager for Securitized Products at JP Morgan Chase in 2000. He was integrally involved in developing the department, hiring 40 salespeople, and generating $300 million in sales revenue. He left JP Morgan in 2006.

Throughout his career, Larry eagerly engaged clients and colleagues. He has mentored dozens of junior colleagues, recruited at a number of colleges and universities, and interviewed hundreds. He has also had extensive public speaking experience. Additionally, Larry served as Chair of the Mortgage Trading Committee for the Public Securities Association (PSA) in the mid-90s.

Larry graduated Cum Laude, Phi Beta Kappa in 1983 from the College of the Holy Cross.

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