tag:blogger.com,1999:blog-7609353726565000072.post1858239071616967680..comments2023-06-14T02:29:40.319-07:00Comments on PSPRS Pension Watch: What's next for PSPRS now that Proposition 124 has passed and other questions we would like to see answeredDrop Zonehttp://www.blogger.com/profile/07195030344305212432noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7609353726565000072.post-25380401350327059012016-06-06T09:07:25.015-07:002016-06-06T09:07:25.015-07:00I'm just a concerned member of PSPRS.I'm just a concerned member of PSPRS.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-49834282741757392752016-06-06T09:05:39.879-07:002016-06-06T09:05:39.879-07:00My understanding is that there will be no COLA'...My understanding is that there will be no COLA's possible until 2018. It is also highly unlikely that PSPRS will earn the 9% threshold this year as they haven't even earned 1% through the first 9 months of the year.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-41947071822770202042016-06-06T09:01:08.971-07:002016-06-06T09:01:08.971-07:00Thank you for your comment. PSPRS has been around...Thank you for your comment. PSPRS has been around about 40 years, and I do not what was the original intent of their COLA or permanent benefit increase (PBI) policy was or how it has changed. Based on comments I've heard recently, it seems that the PBI policy that was just changed by Proposition 124 was implemented sometime in the mid-1980's. This would jibe with the tail end of the high inflation period that was finally defeated with high interest rates instituted by the Volcker-led Federal Reserve.<br /><br />I have no definitive answers as I was not a PSPRS member then. Perhaps someone who was could give better answers, though I agree with you that we have gone fully blind in the other direction. The old PBI assumed that high inflation was a permanent feature of the economy. Proposition 124 assumes that low inflation is the new normal. This is just as foolish in its short-sightedness but can be much more painful for retirees.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-34926932550243288222016-06-03T16:02:24.631-07:002016-06-03T16:02:24.631-07:00Who wrote the portion of this document that comes ...Who wrote the portion of this document that comes after Mr. Smout's portion? What qualifications do they have to provide such information and detail? Just asking, not commenting.<br />Bob MitchellBobohttps://www.blogger.com/profile/14359693832334079931noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-48246219323600313612016-06-03T14:09:12.723-07:002016-06-03T14:09:12.723-07:00Since this takes affect in July 2018, will PBI'...Since this takes affect in July 2018, will PBI's be calculated the same for July 2016 and July 2017?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-21076285558536473082016-06-03T08:43:13.419-07:002016-06-03T08:43:13.419-07:00You are absolutely right about inflation being a t...You are absolutely right about inflation being a tool that PSPRS can use to change the direction of the overall funding levels. Not only in the area of investment returns, but also in ee/er contributions. Those contributions are actuarially factored for inflation. <br />More to the point, what is the goal of PSPRS for it's retired beneficiaries? Was it to provide a retirement benefit that would remain financially constant over the remainder of their lives? Provide a benefit that would increase in purchasing power? I think the implied contract between the employer and the employee who enters into the PSPRS defined benefit plan at the beginning of their career is that they would have a constant benefit that neither increases nor decreases in purchasing power. It seems that Prop 124 swung the pendulum too far in the wrong direction.Dave Christianhttps://www.blogger.com/profile/12976586007167718792noreply@blogger.com