$1.6 Million Bill Tests Tiny Town and 'Bulletproof' Public Pensions

But then came those letters, thrusting Loyalton onto center stage of America’s public pension drama. The California Public Employees’ Retirement System, or Calpers, said Loyalton had 30 days to hand over $1.6 million, more than its entire annual budget, to fund the pensions of its four retirees. Otherwise, Loyalton stood to become the first place in California — perhaps in the nation — where a powerful state retirement system cut retirees’ pensions because their town was a deadbeat.

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"I worked all those years, and they did this to me," said Patsy Jardin, 71, who kept the town’s books for 29 years, then retired in 2004 on an annual pension of about $48,000. Now, because of Loyalton’s troubles, Calpers could cut it to about $19,000.

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Celebrity said:

And... another one bites the dust. California is considering cutting off the retirees of a small town of <800 for not paying their bills.




This is a capitalist society after all. We can't just go around cleaning up after old people because their town won't pay their bills. Same thing with young people. It doesn't matter that they already put in their hours, they should have just lived in a more affluent town. There's no way this town can come up with $1,600,0000. It's more than their entire budget.

$19,000 is still above the Federal Poverty Line for a household of two.

$1.6 Million Bill Tests Tiny Town and 'Bulletproof' Public Pensions - The New York Times

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DaveFagan said:

I presume that Loyalton failed to pay into Calpers for many years. I'm certainly sympathetic to the pensioners, but wonder why they didn't check that their town was paying in to their pension plans. I guess the town will have to sell City Hall and the Park, etc. or something similar. It is the Town that has been neglegient.

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