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Hircus says

How do the pensions work? I always thought a pension paid a yearly amount until you died. But they talk about the pension having a specific value, which implies there's a certain total amount it can payout - which may imply it can only pay out for so many years, not forever.

Even the forever ones are not necessarily forever.

My brother-in-law was a policeman in Detroit and expected a good pension, but Detroit went bankrupt and it got cut back in spite of his contract and the union.

Patrick says

Even the forever ones are not necessarily forever.

My brother-in-law was a policeman in Detroit and expected a good pension, but Detroit went bankrupt and it got cut back in spite of his contract and the union.

Yes.

Some United Airlines pilots were cocky (cocky aviators, - who'd ever imagine that?) about their fat pensions, so they didn't think they needed to save in IRAs or 401's or whatever. Then in the bankruptcy their pensions were canceled, taken over by the Federal Pension Guarantee Corporation. The federal guarantee has a "maximum", sort of like social security. The highest paid most cocky aviators got the same pension as the lowly ramp worker.

Another one, IBM. Cashed out nearly everyone during the Louis Gerstner years in the 1990's. I worked there for a time in the previous decade. Some of the folks I knew were comfortable in the knowledge that they'd have a comfy retirement with the fat pensions of their paternalistic employer. No need to do 401. But then they were cashed out.

B.A.C.A.H. says

For residents in the StatePeople's Republic of California, they'll just make us Tax Donkeys cover those capital losses for the state employees' pensions. Municipalities may try to do that also.

Or take it from roads and then say we need to raise gas tax or something similar, in the end I guess it's all the same. That what happened last time they tried raising taxes for pension losses.

Patrick says

My brother-in-law was a policeman in Detroit and expected a good pension, but Detroit went bankrupt and it got cut back in spite of his contract and the union.

Just imagine the fallout if it was CA. It would probably trigger foreclosures all over CA and all the state's the CA pensioners have fled to.

There’s quite a bit of bad information in this thread. I’ll try to address when there is time. In the meantime if anyone has questions I’m happy to try and answer.

Hircus says

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How do the pensions work? I always thought a pension paid a yearly amount until you died. But they talk about the pension having a specific value, which implies there's a certain total amount it can payout - which may imply it can only pay out for so many years, not forever.

it is forever. unless the pension fund runs out of money. the amount you see is projected value, however they can easily spend way over that amount if a retiree lives longer.

pension system is draining ca big time. its a very corrupt system.