Archives for: May 2010, 18
This is from former newspaper man Ron Kaye about the LA city pensions:
The bill to taxpayers for city pensions is close to $1 billion this year and is expected to go far higher in coming years which is the No.1 reason services are being slashed, assets sold and bankruptcy looms as the only way out.
Among the many sweetheart deals over the years that have led unions to finance the campaigns of our elected officials is a little clause that LACERS uses to make sure retirees get 3 percent cost-of-living increases in their pensions even when there is no inflation.
This year, LACERS reports the increase in the consumer price index for 2010 "for the Los Angeles area is negative 0.8%. This is the first time in LACERS' history of COLA processing that a decrease in the CPI has occurred."
Not to worry, pensions are not being decreased.
"In spite of the negative change in CPI, none of LACERS Members and beneficiaries will experience a reduction of their retirement allowances," LACERS explains on its website.
Read more here.