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.







Loading...

18 Comments

  1. isoslo says:

    Everyone needs to understand that the vast majority of government employees really don’t give a hoot about the country, state, county or city finances. They just want as much as they can get for themselves. Once you understand this hopefully you will stop electing all of these feel good people and start electing realists who try to do what is in the citizens best interest.

    (13) 15 Total Votes - 14 up - 1 down
  2. DocT says:

    Like the city of SLO, I also have some unfunded liabilities of my own.

    1. Cannot afford the 8 million dollar home I desire and deserve.
    2. Cannot afford health insurance which is my “right.”
    3. I must save my own money for my retirement. I don’t have enough.
    4. I have zero paid vacation days, zero sick days and zero mental health days. I’m self employed.

    Since I can’t enjoy these “benefits” I’m asking all of you to send me money. If you could each send me a couple thousand dollars……I could afford my house, buy healthcare insurance, retire and take paid time off in the mean time.

    If you send your money to me, I won’t squander it.

    I wish I could force you all to give me money….like our glorious leaders….but since I can’t and since I DESERVE the same things they all get, I’m making all of you responsible for me.

    Nice eh?

    (16) 18 Total Votes - 17 up - 1 down
    • jimmy_me says:

      Great post. I always felt the system was well-conceived, but was ruined by corrupt administrations. It seems the deal was that if you came to work for the government, they would reward your decision to take the lower pay by providing a modest pension. Over the years, the management bloated their ranks and salaries, which broke the system. It’s not the secretary or ditch-digger that caused this problem; it’s the many over-compensated staff and their history of demanding competitive (higher) salaries. Additionally, the pension should not be applied equally to all employees; the higher your salary, the more you must pay into the system. The retirement system was not designed to have admin staff maintain their high standards of living upon retiring.

      (14) 16 Total Votes - 15 up - 1 down
      • DocT says:

        A well conceived system would not be founded upon theft. (taxation).

        In addition, a well conceived system would not be dependent upon massive borrowing and debt.

        Because the foundation of government, pensions, salaries and the like is theft and debt—-the proceeds from theft are used to partially pay interest on the massive debt—-there is no “correct” or just way to do it. Sooner or later, the mill grinds away and we learn:

        1. The best people in government are those who are most adept at theft. Duh. This causes corruption. Again….duh.
        2. at some point there’s not enough money to steal to pay for the interest on the debt.

        At this point, the corrupt thieves start doing very corrupt and immoral things in order to keep the gravy flowing…..but as well all know, the whole thing will collapse.

        We’re experiencing the corruption I speak of at all levels of government. The collapse is coming…..I have no timetable, but it will come.

        (6) 8 Total Votes - 7 up - 1 down
  3. Jorge Estrada says:

    Yes it is fun to be a liberal Democrat and fund all of our supposed needs,
    but like the free love of the 60’s we now have mouths to feed.

    (11) 15 Total Votes - 13 up - 2 down
  4. shelworth says:

    Someone check my math, that’s only about 3200 bucks per person. Just start writing checks…

    (11) 15 Total Votes - 13 up - 2 down
  5. womanwhohasbeenthere says:

    The current staff and council are doing nothing but kicking the can down the road just as their predecessors have done for over a decade. It’s not a $9 million deficit, it’s a $153 million deficit owed to CalPERS (2017 figures) along with other debt.

    As long as the management staff and unions are recommending all the “solutions,” you can be sure nothing will change except the cost of living and doing business in San Luis Obispo.

    It’s too bad the public doesn’t have a seat at the table to determine what to do. All they get to do is pay for it.

    (31) 39 Total Votes - 35 up - 4 down
  6. George Bailey says:

    Heidi Harmon’s ‘Progressive’ dream may be wonderful for her, but it is nightmare for those of us who will be paying the bills.

    I imagine Heidi thinks we probably deserve it.

    George

    Stop Progressive loser’s like Heidi Harmon.

    (28) 34 Total Votes - 31 up - 3 down
    • kayaknut says:

      Hey leave poor Heidi Harmon alone, she is doing important work, like getting of the plague of plastic straws in the city.

      (16) 20 Total Votes - 18 up - 2 down
  7. 1965buick says:

    So the real figure is probably more like 300M.
    Nothing a raise and trip to Disneyland can’t fix.

    (27) 31 Total Votes - 29 up - 2 down
  8. copperhead says:

    $150M in the red when the stock market is at all time highs.

    What happens when the market corrects?

    Defined benefit plans for government employees are the biggest government scam and account for more theft of our money than the taxpayer realizes.

    Do away with this ridiculous pot of gold for life for these government pukes.

    (26) 44 Total Votes - 35 up - 9 down
  9. fat chance says:

    The new gas tax should help the problem…We all know it’s not going to be used to fix the roads.

    (50) 56 Total Votes - 53 up - 3 down

Leave a Comment