San Francisco has a huge $5.8 billion pension liability. A series of retroactive benefit increases approved by voters over a dozen years is mostly to blame.
Voter generosity helped contribute to an eye-popping increase in the public payroll.
The cost of city salaries and benefits, which include pensions, has grown by 33 percent over the past decade — and it’s expected to keep up that pace for at least five more years. That will add another $698 million to the public tab.
These retroactive increases were very expensive gifts to employees and retirees from taxpayers, paid for with money borrowed at a high interest rate from the retirement system, and paid back over 20 years by taxpayers.
Good luck with that.
Source: San Francisco Chronicle