Bonus Payments to City Retirees Are Drawing Ire

[The Northerner]

As San Francisco struggles under ballooning pension and health care costs, the city’s retirees will receive unexpected cost-of-living bonuses totaling $170 million. The city’s anticipated budget deficit for the coming year is $360 million.

A political battle has raged over the city’s growing retirement obligations. In November, Proposition B, which would have required city workers to contribute more toward their pensions and benefits, was soundly defeated. The measure’s opponents — every major elected official and energetic public-employee unions — said fears about the pension fund were overblown.

Meanwhile, the fund’s fundamentals deteriorated as it gradually accounted for its huge losses in the stock market crash. It took in $414 million in contributions in 2010 but paid out $819 million.

On Jan. 4, an actuarial firm reported that the $13.1 billion San Francisco Employees’ Retirement System now had an unfunded liability of $1.6 billion — triple its shortfall a year earlier. Gary A. Amelio, the system’s chief since January 2010, did not respond to questions.

Read more: http://www.nytimes.com/2011/01/21/us/21bccola.html?_r=2

[badtoworse]

1. There will no doubt be bewilderment when the fund runs out of money at some point in the future.

[taught_me_patience]

2. I think it's time to move to a 401k

like the private sector.

[ProgressiveProfessor]

4. Been saying that for some time

It is not always a real popular message around here...

[Hannah Bell]

3. cost of living "bonuses"? wtf? orwell-speak.