The Los Angeles Times regularly reports on what it describes as "California’s $500 Billion Time Bomb of Unfunded Pensions".
Sacramento politicians say it's only $200 Billion.
What about young Californians who are going to get the bill in 2025?
Where did all the pension money go?
Pensions are protected under the Employee Retirement Income Security Act (ERISA) which was signed into law by Republican President Gerald Ford in 1974. This law originated out of a crisis that effected senior citizens in the 1960s and 1970s. Their pensions were so badly managed, when companies such as Studebaker went bankrupt pensioners only received 10 cents on the dollar.
The ERISA law set very strict guidelines on how pensions could be invested so this would never happen again.
ERISA worked well for many years until Wall Street crony capitalists changed the rules of the law, and allowed pensions to be used for high-risk ventures. Investment bankers collect hundreds of millions in fees betting on high risk, and often fake technology.
To stop the waste and fraud in Pensions funds you simply need to enforce laws such as ERISA as they were originally written.
If you send me to Sacramento I will work to safeguard your pensions.