SLO’s more than $148 million in unfunded liabilities

October 6, 2017

Over the past 15 years, the city of San Luis Obispo’s unfunded pension liabilities have gone from $0 to nearly $150 million and rising. And with SLO’s annual payment to the California Public Employee Retirement System (CalPERS) set to more than double over the span of a decade, city officials are now scrambling to fill a projected $8.9 million budget gap over the next three years. [Cal Coast Times]

Late last month, outgoing city manager Katie Lichtig handed the baton to Derek Johnson, whom she selected to be her successor. The change in management comes at a turbulent time for the city with SLO’s unfunded pension liabilities spiking approximately $22 million over the past year and CalPERS ordering local agencies to make larger contributions to their retirement plans.

As of June 2015, San Luis Obispo had $126 million of unfunded liabilities in its retirement plans. The most recent figures released by CalPERS show, as of June 2016, the city has more than $148 million in unfunded liabilities.

Read entire article at Cal Coast Times.

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City of SLO should start buying Lottery tickets because that’s the only way they’re ever going to pay this off.

Ummmm…..yeah, the people who live here, work and pay taxes are going to pay this off. The city doesn’t need the lottery, they have people with money they can take.

I can’t help thinking about the many decisions which have resulted from the wordy chatter from some of our leadership. They may have yapped their way into the job but what they can actually can do is self evident. All successful corporations us actuaries, the Incorporated City of SLO might think about using this already invented business model?

CalPERS has an actuary named Barbara Ware, who oversees our city and many others in this part of California. She spoke here a few years ago to the SLO Property Owners Association. At that time the city was 62% funded, with 80% considered the minimum needed. But as long as the city makes its minimum payment she can do nothing but watch and warn. The city has been aware of all these problems for at least twelve years but has deliberately done nothing. Now the staff is tasked with a solution? Don’t think they will recommend any significant cutbacks or sacrifices, unlike the residents who pay their salaries. Hang on to your wallets!

No wonder Katie left.

Government workers have it WAY too good. The blue collar worker benefits are ridiculously high compared to us who struggle at private sector jobs, and the waste and misuse of resources is also absurd. I worked for the state of CA for a few years and saw it myself.

no more kushy gov’t jobs! Its killing us!