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28 July 2009

Comments

Russ Steele

Well done George. Will future lessons bring the issue closer to Nevada County? Where do our local governments and some our quasi government agencies like NID and the Fire Districts fit into the picture? Are they also players in the government ponzi scheme?

DaveC

One need only go to www.pbgc.gov to take a look at the many private industry, defined benefit pension plans that have gone bust since ERISA was created about 30 years ago.

Employees who were promised a pension based on their final year earnings found PBGC took over their unfunded pension plans and now pays them a greatly reduced stipend. Far less than what was promised. All this because the employer failed to pay their part of the bargain and because too much faith was put in return on investment.

Like Calpers, any defined benefit plan is a Ponzi scheme be it private, union or government run.

George Rebane

Yes, there's more to come on things closer to home.

You're right Dave, the Ponzi nature of pension plans goes beyond government and unions. I focus on the latter because their failures affect a broader cohort of taxpayers because of governments' involvement and/or response (especially in today's environment) to those pension plans going bust.

Dixon Cruickshank

Didn't 1 city or county file already, seems I read that someplace. Being self employed my entire career all this is interesting

George Rebane

Yes, Vallejo, CA. More here
http://calpensions.com/2009/01/15/bankrupt-vallejo-eyes-calpers/

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