Tipping Point: Contra Costa County faces unsustainable pension costs

According to a new document from the County, Contra Costa is now at a tipping point as it faces unsustainable pension costs. Between 2007 and the end of 2012, Contra Costa County portion of unfunded pension liability rose from $0.47B to $1.89B. Overall, the unfunded actuarial accrued liability (UAAL) of the County, as a percentage of covered payroll has grown from $84.11% in calendar year 2007 to 349.38% at the end of calendar year 2012.

The unsustainable pension costs just keep climbing with new union contracts. Meanwhile, the projected rate of growth of the County employer rate will increase an average (across classifications) 33% in 2014-15 over 2013-14. At the same time the rise in County employer cost for employee pensions in 2014-15 originally estimated at $22M, will jump to $56M, from $173M to $229M.

County unsustainable pension costs just keep rising

The increase likely means not filling vacant positions and other reductions in services. Depletion of Contra Costa Fire’s reserves, Obamacare costs, new union negotiations, and continued sequestration will compound budget issues even further. Unsustainable pension costs are ruinous to County services and those most in need of County services. The County employee unions have lost any right to calling themselves “progressive,” or to representing “working families”.

County Supervisors must stem the tide of unsustainable pension costs. They must make a stand to pass legislation to phase out Defined Contribution Pensions completely by 2018-19.

Contra Costa County Pension Costs 2014

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Comments

  1. Wendy Lack says

    The “silent majority” in Scranton, PA would prefer BK to maintaining the Detroit-style status quo tax-a-palooza to fund pensions, etc. It makes one pause to consider how many Contra Costa residents would prefer bankruptcy to continued taxing-and-spending, as seen among the county’s fire districts.

    See Scranton piece here: http://bit.ly/1j9nduL

  2. Bruce R. Peterson, Lafayette says

    I’m very disappointed. My post was cut in shreds. That is what the mainstream media does. I lost my faith in you Mister Bill.

  3. Bruce R. Peterson, Lafayette says

    This is a problem the lamestream A.K.A. Mainstream media keeps avoiding. They keep telling us to promote the politicians, who can’t seem to stop spending other peoples money. My city, county, state,
    3 + school districts and federal governments keep going farther and farther into debt.