I find it interesting that the article mentions this:
Across the country, many benefits were granted at the height of the 1990s bull market on the faulty assumption that investments would keep climbing and cover most of the cost. And that flawed premise is now hitting home in places like Loyalton.
...while the actual problem, AFAIK, is not really this but more the simple math of the pool of workers shrinking, and the total accumulating cost of the growing pension pool simply overwhelming budgets (even if the pool of workers isn't shrinking).
She retired many years before the city withdrew from Calpers. It's not clear to me if she is upset with the city or Calpers. I think the city is more at fault. This seems to be an atypical public pension problem. It would cost them about 116k/yr to pay the shortfall so it seems like there should be some way to sort this out.
The article mentions
Its lifeblood, a sawmill, closed in 2001, wiping out jobs, paychecks and just about any reason an outsider might have had for giving Loyalton a second glance.
I'm curious what the town's bookkeeper, in her last 3 years at work, knew or wondered, as the town was becoming a ghost town.
Also, she worked for 29 years, and is drawing a $48k annual pension. Another article (
CalPERS poised to cut retiree pensions in tiny Sierra town | The Sacramento Bee) mentions she, at times, was the town's only public employee. I don't know what their retirement benefit was, but even at 2.5%/year of service (which is extremely generous), a $48k annual pension would be from a $66k/year in salary. Perhaps she spiked her salary with accumulated sick days or vacation when she retired, but for someone who had what appeared to be a decent salary, I'm surprised she didn't have more knowledge or offer more history/input on this matter. Especially as being, "at some times the town's only public employee."
And the article mentions the annual CALPERS payment was $30k? They chose to withdraw from CALPERS to save $30k, out of an annual Loyalton city budget of $1.2MM? While it was significant, that fee didn't seem too onerous. Did they think that they owed no money to CALPERS for the future benefits of the retirees?
Also, according to CALPERS,
since 2011, Calpers had been giving its member municipalities a “hypothetical termination liability” in their annual actuarial reports, so there was little excuse for not knowing.
So whoever is in charge must be more than completely clueless.