Andrew Ross Sorkin has an article in today's NYTimes that gives a glimpse into the future for retirees expecting pensions under CALPERS -- the largest public pension defined benefit plan in America.
To cut to the chase: Patsy Jardin, who is now 71 years old, worked for the city of Loyalton for 29 years. She retired in 2004 with an annual pension of $ 48,000. Now, CALPERS is telling Ms. Jardin that her pension will be cut to $ 19,000. She has been a member of the CALPERS employee pension fund all these years. Now, in retirement, comes her surprise. It's mostly not there.
What is CALPERS doing about it? Nothing. So, tough luck Ms. Jardin. That's what the big government folks do for you. They promise big pensions and then, when the time comes, tough luck.
This article is a worth a read. It is the future for most average Americans. Ms. Jardin's fate is just the beginning. More to come.