Pensions in Los Angeles are Sinking The System

Los Angeles’ Pension Problem Is Sinking The City

Indeed Los Angeles, like so many major U.S. cities, is being crippled by its public employee pension debt. According to the most recent actuarial report, the city’s three retirement systems–for public safety workers, water and power workers, and general employees–have a combined $15 billion debt.


In total, LA’s system has 38,113 retirees and beneficiaries receiving average yearly benefits of $48,218, and many of them no longer live in California, reducing these plans’ supposed multiplier benefits.


Unfunded pension liabilities have already caused bankruptcy in Stockton, Vallejo and San Bernardino; and eat up similarly large chunks of the budget in San Jose and San Diego (despite those cities’ previous reform attempts).

So who will be the first to start saying no to these pensions?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: