I am one of dozens and maybe hundreds of state retirees in your circulation area who feel it”s time to set the record straight about state retiree pensions and how much they impact the state budget.
Some misconceptions and outright untruths have recently appeared in newspapers in the letters to the editor section and in news stories.
It is only fair that you allow your readers to hear the facts, which are not based on one individual”s perception of public workers, but on the undisputable facts.
Claims that pension costs will bankrupt state government are flat wrong. California”s entire contribution to retirement for state employees is less than 5 percent of the state budget.
Assertions that public employee pensions are funded mainly through tax dollars are simply wrong.
Nearly every public employee, office worker, technician, analyst, teacher, firefighter, etc. pays 7 to 10 percent toward their pensions. Investment returns from the California Public Employees” Retirement System (CalPERS) pay for about 70 percent of the pensions. And the employer pays for the rest, except in good financial times when the employer has not always been required to pay its share.
Meanwhile, headlines blaring that pension plans are headed for Armageddon are unsubstantiated. CalPERS has earned back more than $70 billion since the financial crisis and the system”s funding status is estimated near 70 percent. The state of California pays less as a percentage of payroll for pensions today than it did in 1980.
Let”s also make it clear that less than 1 percent of public retirees, mostly high-ranking officials from counties, cities and other public agencies, have pensions of more than $100,000. State retirees, who are taxpayers like the rest of you, are just as critical of those top pension recipients as everyone else.
The average state retiree receives a pension of about $25,000 per year after 20 to 30 years of state service. Most agree that is a fair and livable pension for people who have contributed their entire careers to serving the citizens of California.
Half of CalPERS retirees receive $16,000 per year or less in pension benefits. Unlike the private sector, many public employees do not receive Social Security, making their pensions their sole source of retirement income other than savings. It is also important to note that state retirees and employees contribute billions of dollars to our local communities and are vital to the economy.
Just because some misinformed malcontents want to blame a single group of people for all of the state”s budget woes, doesn”t make their assertions true.
Responsible citizens who want to know the truth should research the facts for themselves. A good starting point is the CalPERS website at www.calpers.ca.gov CalPERS is the largest public pension system in the nation, representing 1.6 million members.
I also advise other state retirees like myself to speak out to their local newspapers, television stations, websites, family members and friends when they hear these misconceptions and untruths about state retirees and workers. Maybe then we can all have a better understanding of what the real truth is behind our state budget woes.
Jo Ann Harmon
Member of CSEA Retirees, Inc.
