By Teri Sforza, OC Watchdog
Before we get into the nitty gritty of this particular analysis – which concludes that Orange County is dangerously underfunding its public pension system – let’s remember that the communists only planned their economies five years out.
The nature of America’s public pension systems is to peer 20 to 30 years into the future – and the crystal ball can get a bit murky.
So the California Public Policy Center (a nonprofit featuring hard-core pension-reformers on its board) ran numbers from the Orange County Public Employees Retirement System, and it wasn’t pretty.
The undisputed facts, assuming a 7.25 percent return on investments:
OCERS owes $15.1 billion to its current and future retirees in county and other local government work.
It has $9.5 billion socked away to pay them.
Which means it has a hole of $5.7 billion, which it must somehow fill.
Now, to fill said hole, the county and its workers kicked in $218 million last year. But they would need to kick in more than twice that much every year – $546 million – to fill that hole in 20 years’ time, the analysis said.
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