Source item

Your daily reminder that if you are hoping for a California state pension, because of the fraud and grift of your elected officials in California, your state pension is at risk. California politicians decided that the best way to cover up their addiction to overspending/under-delivering is to change the reporting rules at the pension system to be as aggressive as possible. Why? Because pensions are constitutionally protected and if it looked underfunded, more tax money would have to go to them (and away from politicians) to fill that hole. So the politicians changed the reporting rules to make the pensions look healthy…but they’re not. They use a bunch of aggressive decisions (discount rate, actuarial vs mark-to-market etc) to make it seem like “all is fine”. But if you make them more conservative and market realistic, it exposes the charade. Per Grok: The "Real" vs "Reported" Picture “If you looked at California's books using the standards used by private-sector corporate pensions (which are required by federal law to be more conservative): 1. The Debt would be roughly 3x higher. 2. The Annual Payments required from the state budget would likely double. The "reporting rules" allow the state to maintain a 79% funded status on paper, whereas a strict market-valuation would likely show the system is less than 50% funded.”