Grand jury dings San Mateo County for failing to rein in sooaring pension costs
Original post made by Susan Smith on Apr 16, 2013
The county's unfunded pension liability is the "elephant in the room," San Mateo Civil Grand Jury Foreman Timothy Johnson Jr. told The Daily News on Monday.
"This problem is so huge. A billion or two billion," Johnson said. "All the numbers are appalling."
The San Mateo County Employees' Retirement Association (SamCERA), which handles the county's retirement program, told the grand jury that as of June 30, 2012, the unfunded liability figure was about $1.08 billion. But that assumes the association's assets will perform at a level which hasn't been reached in recent years, according to the civil grand jury.
However, when taking into account actual investment performance and current economic conditions, the grand jury projected a shortfall closer to $2 billion.
Editor's note: Here is a link to the report (PDF): Web Link
on Apr 16, 2013 at 8:08 am
I recommended the Supervisors use most of Measure A tax income to pay down the unfounded debt, and that was when I thought it was just $1B.
SMC Grand Jury link
on Apr 16, 2013 at 8:10 am
on Apr 16, 2013 at 12:20 pm
To say 'appauling' is really an opinion. The pensions are the price to compensate talented people, as their incentive to keep their jobs, do them well and be reliable. Wait until pensions are squeezed out...it will be difficult to attract and retain talent.