The Chickens Came Home To Roost, and brought a T. Rex with them. http://vimeo.com/9119965 At the LANCC Budget L.A. meeting Saturday, Jan. 30, 2010 Alexander Rubalcava, pension expert, gave an in depth presentation on the pension and health care obligations facing the City of Los Angeles. Ahead of his time in 2006 when he called for pension reform. His dire predictions were dismissed by the City's then CAO Fujioka, Rob Wilcox, Deputy City Controller and others. Los Angeles city and county officials defended their pension systems, saying they are in far better condition than those in Orange County and San Diego, where unfunded liabilities are threatening to bankrupt those jurisdictions. And Los Angeles City Administrative Officer William Fujioka said city officials met with Alex Rubalcava, president of Rubalcava Capital Management, and found some "very significant errors in his estimates and assumptions." "There was a comparison of us to San Diego," Fujioka said. "I take strong exception to that. The city of Los Angeles has done an exceptional job in managing our retirement benefits. Unlike other major cities throughout California, we have not raised our benefits for city employees." See the Daily News story: http://tinyurl.com/5892m5 L.A pensions are of the defined benefit type. That means that the taxpayers have to dig into their pockets to an unlimited extent to literally guarantee the retirement benefits of pensioners. Regardless of investment returns. For the equivalent of less than one year’s pay City employees upon retirement, many times in their 40's or 50's, far before social security retirement age, can draw, 65% to 75% and in some cases 95% to 100% of their salaries with cost of living adjustmens for the rest of their lives. They also can be eligible to receiving free health care coverage valued at about $1,000 per year. Health care coverage that the employee never contributed to during their career. Multiple, redundant pension commissions for the city's pensions should be consolidate, he said, saving the City between $20 Million to $40,Million a year. He wants a balancing of responsibility and risk with the pensioners and the tax payers. Presently the pension commissions have no responsibility to the greater city good. Investments, made by the pension commissions, which may promising a high return turn can turn sour with the tax payer on the hook again. L.A. has the most generous benefits for its employees. Exceeding the federal government and most county and municipal governments. Without pension reform, the Tyrannosaurus Rex in the room. he predicts the City will be in Chapter 9 bankruptcy in 1 to 2 years. Anything else done to reduce the deficit is akin to rearranging the deck chairs on the Titanic See the video for more, much more.