Skip to content
September 12, 2013 / jimnv

More Bad News for Sandoval

There is even more bad news for Sandoval besides the patient dumping scandal… the Public Employee Retirement System  (PERS) is doing very well financially. In fiscal year 2013 the return was 12.4 percent and the fund’s value increased by $2.9 billion dollars. Their professional and common sense investment strategies made this happen and Sandoval must be very annoyed by this.

In 2010 PERS paid $1.3 billion in pension payments with $1.1 billion going to Nevada residents. This money supports more than 10,000 jobs statewide and represents over $1.2 billion in total economic output. Nevada retirees spend their pensions on such things as groceries, medical services, transportation and housing. This means NV PERS adds value to Nevada’s economy. See “The Economic Impact of Nevada PERS” – March 2013.

Nevada PERS is a job creator and a valuable part of Nevada’s economy. Still, Sandoval and his cronies are hell-bent on degrading our retirement system for political gain. Who would want to change a well run retirement system that supports the state’s economy? Only crazy people like Sandoval and his party hacks, that’s who.

The patient dumping lawsuit is an expected reaction to an ineffective and transparently corrupt administration. Things are catching up with Sandoval and this will hopefully degrade his political momentum.

———————–

Reference: Retiree News- Summer 2013

Advertisements

2 Comments

Leave a Comment
  1. Michael Jackson / Sep 13 2013 10:51 am

    “August 27, 2013
    Public Pensions Funds Do Social Activism

    Public pensions are in deep trouble across the country, but you might not know it to look at some of their investing decisions. Despite the need to earn the highest possible returns on their investments for their stakeholders, a number of public pension funds are using their investment power to support pet political causes.

    We’ve beat this drum before, and now Texas comptroller Susan Combs is joining the chorus in a WSJ op-ed:

    “When officials with fiduciary responsibilities for public funds shift their focus to non-financial “values” such as the environment or gun control, at best it is at the expense of these responsibilities; at worst it is a clear conflict of interest. It is a particularly risky lapse given the dismal state of many public pension funds. The Government Accounting Standards Board is changing its reporting requirements in 2014 to require increased disclosure of the financial strength of these funds. These requirements make it even more incumbent on public managers to focus on the financial needs of workers’ retirements. […]

    If public officials don’t approve of the way a company manages its business, or even the area of business it is in, they can dump the investment. But trying to change those companies—in terms of where and how they legally operate—offers public officials too many opportunities to grandstand. They may try to coerce legal businesses—say, to disinvest in oil exploration—for reasons that have nothing to do with investment value. It may be good politics, but it does nothing for the pension funds, and can easily depress the value of their existing investments.”

    Yes, Reading stories like these, it’s hard to shake the feeling that on some important level, public pension managers are ostriching in the face of the crisis before them. With projections for investment returns for many funds already unrealistically high in many states, the last thing future retirees need is managers playing politics with their nest eggs.”

    http://blogs.the-american-interest.com/wrm/2013/08/27/public-pensions-funds-do-social-activism/

  2. Michael Jackson / Sep 12 2013 9:04 pm

    It is the stock market “bubble” and PERS investing in it that allows it to do so. Once that bubble “pops” (or Nevada has to declare default like Detroit), then the situation takes a turn for the worse. Housing here is in a “bubble” as well with 2/3 of homes in washoe still underwater (and we saw what happen with that last “pop” except we didn’t have homes underwater) Jobs have come back but at minimal wages (less disposable income meaning poor retail sales) so new taxes is out of the question. Voters WILL vote against any new taxes in 2014 and half of PERS is paid by taxpayers. What will happen when the revenue starts dwindling?

    The Federal Government has already written legistration allowing states to declare bankruptcy but it has not come to the floor for a vote (PERS has a link to this website about it: http://www.nasra.org/resources/2013%20Facts%20You%20Should%20Know.pdf). If a state does so, it can default on everything.

    As Schwarzenegger once said, “Hasta la vista, baby!” as defaults are going to happen. Los Angeles may do it by next year. Stockton already has. It’s only a matter of time. Wait till slump retail sales causes a massive unemployment spike, sending stocks crashing down. Just because PERS is doing good at the crap-tables now doesn’t mean it’s going to last. When the next crash come, PERS will be the titantic hitting the iceberg cause it takes a robust economy to support persion plans that are dependent on the stock market. What will happen when it’s only 40% funded?

    Pension Plans will not be the only thing wiped out – the destruction will be immense across-the-board. We’re a bankrupt nation, living off of fiat money. Save what you can from your pension and reinvest it into something more lasting (China ain’t stockpiling shipments of Gold for nothing – they know the Federal Reserve Board better than we do).

    A recommended book would be “Paper Promises” (http://www.amazon.com/Paper-Promises-Money-World-Order/dp/1610392299). The book is all about the history of fiat money and how the story always ends the same way – busted and broke. All you really have is an IOU from the State of Nevada.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: