Note to California Public Employees "Entitled" to Pensions: Retire Now to Get as Much From the System as Possible!

According to common knowledge as well as some Ph.D. from some place called the Stanford Institue for Economic Policy Research, there will be a funding shortfall for three public employee pension systems: the California Public Employees’ Retirement System (CalPERS), California State Teachers’ Retirement System (CalSTRS), and the University of California Retirement Plan (UCRP).

- The combined unfunded liability for CalPERS, CalSTRS, and UCRP assuming a 6.2% rate of return on their investments (note: in 2011 the S&P 500 was up 0.1%) is $290 billion, equal to more than three state General Fund budgets.

- Using a low-risk, or risk-free, discount rate, the combined unfunded liability for these three systems reaches $497 billion.

- The probability of CalPERS assets falling short of obligations is 82 percent; i.e., there is only an 18 percent chance of assets exceeding liabilities over a 16-year forecast period.

Side Bar: I ordered a pizza on Monday. I got the pizza and paid $15 to the delivery guy named CalSTRS. It was a decent pizza, it wasn't hot, but wasn't cold either. On Tuesday, CalSTRS came back and demanded another $15. I asked "why? I didn't order a pizza today." He said that one, I wasn't getting a pizza today and two, it was for the pizza he gave me yesterday. I'm never ordering from CalSTRS or his company again. But I still have to pay him $15 a day until he dies...

Source: http://siepr.stanford.edu/system/files/shared/Nation%20Statewide%20Report%20v081.pdf