Les Jones

CalPERS actuary says pension costs “unsustainable”

Tuesday, August 18th, 2009 | Economics |

Mish - CalPERS Admits California “Pension Costs Unsustainable” - So What To Do About It?

The CalPERS chief actuary says pension costs are “unsustainable,” and the giant public employee pension system plans to meet with stakeholders to discuss the issue.

“I don’t want to sugarcoat anything,” Ron Seeling, the CalPERS chief actuary said as he neared the end of his comments. “We are facing decades without significant turnarounds in assets, decades of — what I, my personal words, nobody else’s — unsustainable pension costs of between 25 percent of pay for a miscellaneous plan and 40 to 50 percent of pay for a safety plan (police and firefighters) … unsustainable pension costs. We’ve got to find some other solutions.”

Tags: california, pensions, unions

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