Pension Tsunami
By Benjamin Pacini • Tuesday, October 13, 2009 2:28 pm
Did you know that the California Pension system pays over 4,000 people more than $100,000 per year? The top earner is Bruce Malkenhorst, who was employed in Vernon California, and made $499,674.84 this last year.
Did you know that, according to the Washington Post, over $1 trillion was lost to state and local governments in public markets? This loss has encouraged states to take riskier investments, on the hopes that they recoup some losses.
Did you know that many Californians are employed and still get pension benefits? Many are getting six-figure incomes while the struggling state of California doles out $80 or $90k a year.
These interesting facts come from www.pensiontsunami.com, an interesting site dedicated to discovering the impending pension flood that will happen when the baby-boomers retire. It has news, a press center, and a blog, all dedicated to explaining the pension mess that is going to engulf California in the next few years. It’s worth a look.
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The California state employees pension fund, CalPERS, has been plagued by "pay-to-play" scandals and other reasons for incredibly imprudent investment practices. Throughout the country, the pension funds' shortfall in assets to pay benefits may well be caused by some of the same practices that have caused extremely high losses to CalPERS and the pension funds of other states and localities. We are presently investigating these practices in several California localities as well as by CalPERS and CalSTRS. While overly generous compensation packages with arguably generous pension benefits may well have contributed to the problems of pension funds, particularly in states such as California, where the state's current contribution is about $4 billion, it is important to note that not only are all taxpayers going to have to foot the bill, the employees themselves will have to reach into their own pockets to add to the governmental contributions in order to fund their pension benefits. In our clients' pending class action in New Mexico, we have sought a recovery from the Trustees who have mis-managed pensioners' money as well as those persons and entities who have been engaged in "pay-to-play" as a means of obtaining New Mexico's investment business. A copy of the Complaint may be obtained free of charge by e-mailing me at the address below. Richard D. Greenfield Attorney-at-Law 250 Hudson Street 8th Floor New York, NY 10013 (917) 495-4446 whitehatrdg@earthlink.net
>> Richard D. Greenfield July 25, 2010 8:04 pm
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