A plus for pensions
Executive Director, Hank Kim, responds to the Sacramento Bee, "The pension nightmare for California's cities is getting scarier"
Re “The pension nightmare for California's cities is getting scarier” (Editorials, Feb. 12): The editorial board overlooks the fact that California's state and local pension funds are net revenue generators. When retired public employees spend their pension checks, local economies grow. Further, when pension fund assets are invested, the economy and tax revenues grow. In 2016, state and local revenues generated because of public pension funds in California exceeded taxpayer contributions by $1.7 billion. Dismantling public pensions is a short-sighted policy response. The stress on budgets can be managed by closing tax loopholes and economic development subsidies. Otherwise, California's economy stands to lose $1 trillion by 2025.
HANK H. KIM,
NATIONAL CONFERENCE ON PUBLIC EMPLOYEE RETIREMENT SYSTEMS