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A few facts regarding changes to Calif. state worker pensions

In this June 27, 2012, file photo, pedestrians cross a street near the Bank of Stockton in Stockton, Calif. In 2014, Stockton asked a U.S. Bankruptcy Judge to approve a plan for reorganizing more than $900 million in long-term debt over objections from a lone creditor who says it was treated unfairly.
In this June 27, 2012, file photo, pedestrians cross a street near the Bank of Stockton in Stockton, Calif. In 2014, Stockton asked a U.S. Bankruptcy Judge to approve a plan for reorganizing more than $900 million in long-term debt over objections from a lone creditor who says it was treated unfairly. Gosia Wozniacka Associated Press

Jack Dolan’s wholesale indictment of changes to state worker pensions brought about by the passage of Senate Bill 400 in 1999 (“The political deal that’s costing California billions, Sept. 19) needs to be tempered by a few facts.

For the fiscal year 2016-17, state contributions to worker pensions will be 3.2 percent of state spending. The average CalPERS pension is $31,500 per year. CalPERS safety members eligible for the 3 percednt at 50 formula who retire with 30 or more years represent about 3 percent of CalPERS total retiree population and only 3 percent of CalPERS retirees receive the much-publicized $100,000 yearly pension.

CalPERS pension benefits paid in 2013-24 in the amount of $15.3 billion produced another $15.6 billion in economic activity for a total of $30.9 billion of economic impact while generating 104,974 jobs and $716 million in sales and property tax. Only 22 cents of the CalPERS pension buck is paid by the taxpayer, the rest is paid for by investment earnings and CalPERS members.

Dolan indicates that these benefits are of the type normally reserved for the wealthy, in contrast to the stark financial insecurity facing most Americans in retirement. It doesn’t sound that way to me. Maybe he is exhibiting some of that pension envy he mentions because he didn’t have a union willing to fight for benefits for its members.

Charles Peterson, Los Osos

This story was originally published November 19, 2016 at 11:51 PM with the headline "A few facts regarding changes to Calif. state worker pensions."

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