Here's bad news from the state Supreme Court, which just ruled that some non-vested retiree benefits may be immune from cuts. Per Reuters, "The California Supreme Court declined to give local governments carte blanche
to hike health premiums for retired workers, saying on Monday that retirees could have a right to such benefits in some
circumstances." Just when the state needed to be going in the other direction, the court put localities in a tighter box.
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The a lot of money to be made shorting the municipal bonds of CA and it's counties, cities, and towns. The countdowns to bankruptcy's has begun.
The issue of state employee retirees vs. everyone else will get worse as the aging US demographic retires in larger and larger numbers. The issue will ultimately be decided in several years as non-government retirees say "enough" to the state courts (which include judges who are or will be gov (taxpayer) supported retirees and legislators who are or will be gov (taxpayer) supported retirees. At some point, taxpayers without gov pensions will surround the state capitols throughout the US, precipitating an historic confrontation: Will the legislators allow the courts to mandate tax increases to support gov employee pensions at the expense of their jobs in the face of an angry and financially deteriorating electorate?
So who gets hurt ?
The actives, as the ridiculous and excessive subsidies to those already retired continues, eating up all that might have been available to fund the retirements of the current actives.
Hey actives .... you don't really think Private Sector Taxpayers will make you whole?