New article offers perspective on public pensions
The Truth Behind L.A. Times' Claim That Public Pensions Cost CA Billions
Recent news articles have set their sights on public pensions, claiming that they are unsustainable and cost the state billions while public employees enjoy excessive retirement benefits. Recently, a Capital & Main author responded to a September article in the Los Angeles Times that claimed public pensions offer retirement security that is normally only available to the wealthy.
The article puts the cost for state salaries and pensions into perspective, stating, "...since 1999, state spending other than salaries and pensions has soared from $19 billion to $136.1 billion, a 715 percent increase. If salaries and pensions had grown at that same rate, those costs today would be $42.8 billion rather than the actual $34.6 billion. So rather than “costing the state billions,” as the Dolan piece proclaimed, public servant salaries and pensions — including those created by SB 400 — could just as easily be said to have been a bargain over the long-term for California, saving taxpayers $7.2 billion."
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Content above reposted from CalPERS Ambassador Program Newsflash.
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