Sunday, November 22, 2015

North Carolina, Greensboro and Guilford County, only different = Why NC Treasurer Janet Cowell isn't seeking reelection

"[Retirement System] may lower its return target; taxpayers may have to contribute more

Experts have warned for years that the state's largest public pension plan has overestimated how much its investments will earn, leaving taxpayers to pay billions of dollars more than expected.

Now the board of the California Public Employees' Retirement System is reconsidering.  As soon as Wednesday, the fund's board could approve a plan that would slowly reduce to 6.5% the current 7.5% it says it expects to earn on its investments.

North Carolina Teachers, 
State Employees and Local Government; 7.25% Unrealistic 'Expectation'

For taxpayers, that seemingly small change is significant.

Consider the average California Highway Patrol officer who now earns $105,000. Taxpayers currently contribute $47,000 a year for that officer's pension.

If calculated using an expected investment return of 6.5% instead, according to CalPERS documents, the taxpayer contribution would be $68,000 — an increase of more than 40%.

North Carolina Teachers, 
State Employees and Local Government; 7.25% Unrealistic 'Expectation'

"It has understated pension debt dramatically," said Joe Nation, a professor at Stanford's Institute for Economic Policy Research...

"They've been able to convince a lot of people things are OK when they aren't."

Many experts believe that even the 6.5% estimate is too optimistic.

The average corporate pension plan now uses a rate of 4% to determine how much money needs to be contributed overestimating expected investment returns, CalPERS and other pension funds have hidden the true cost of public worker retirements.

Most of what local government, school and state employees
have been told by the News and Record about the state's pension plan
has been a lie, and they won't say they are sorry,
because their excuse is they didn't know
as they are mostly financially illiterate 
and stenographers for socialist/fascist fallacies 
regurgitated by 'friendly' political allies
who profit from the contributions of 'supporters'
who profit from overcharging North Carolina's pension system
just like the 'folks' who run Warren Buffett's financial businesses do.

...Currently CalPERS says it is short about $117 billion for pensions already owed to government employees. That debt was calculated by assuming it would earn an average of 7.5% on its investments for decades into the future.

That hole would deepen more than 50% to $178 billion if the rate of 6.5% was used instead...

What would the shortfall be for North Carolina?

Most would think our press would ask, 
but they don't, and most likely won't untill it's too late
or the New York Times reports it
and the top execs working for Warren Buffett wax poetic
as his banks make money from overcharged North Carolina employees
via the Stable Value Fund in Janet Cowell's pension fund

...California cities have been forced to cut services ranging from police patrols to library hours to cover fast-rising payments to CalPERS. Skyrocketing retirement costs were at least partly to blame for the bankruptcy filings of three California cities in recent years, including Stockton and San Bernardino.

..."This is going to be pretty tough for a lot of cities," said Rudy Fischer, a council member in Pacific Grove, where pension costs are expected to soon consume as much as 30% of the general fund — up from 20% today. "We aren't able to do the sidewalk repairs and fix the street lights as much as we want to."

If anyone reading this thinks Tony Wilkins will rise to the occasion, 
they would likely be incorrect
as Tony played for the wrong team against City of Greensboro employees
along with Nancy Vaughan, Marikay Abuzuaiter, Mike Barber, 
Jamal Fox, Nancy Hoffmann, Sharon Hightower and Yvonne Johnson 
relative to the City's 457 retirement plan fees
for Jim Westmoreland and Mary Vigue

the exaggerated expected investment returns have allowed governments to promise workers pensions at levels that aren't sustainable.

"The public pension system model is all about pushing costs to the future," Nation said. "No one has been paying attention. Now it's caught up with them."
Same "Pay to Play" Campaign Contributions to NC Treasurer Janet Cowell as Chicago's Rahm Emanuel

The News and Record didn't report any of this 
and will most likely not do so, 
as either they don't understand the issue enough,
or they just plain old sold out
to being no more than a propaganda outlet
not unlike Triad Business Journal

"$30 Billion Unaccounted for in North Carolina State Pension Plan"

Crow Holdings Capital Partners LLC and Pay to Play with NC Treasurer Janet Cowell

NC Treasurer Janet Cowell "Investors as contributors"