rocky

I'm Out of Closed-End Muni Funds - For Now

Many municipalities are going to have major problems honoring all their commitments to their public employee pension funds in a few years (including post retirement medical benefits). Don't be surprised if some issuers have to file for bankruptcy protection. Orange County, CA has retained law firms to see if it has grounds to invalidate its pension commitments, especially to recent public safety retirees. In Orange County, a sheriff's deputy with a lot of overtime in his final year of service can retire at age 50 and 30 years service with a pension of 90% of final year compensation. So if a deputy racks up $100,000 in overtime pay in his final year, he could easily qualify for a pension of $150,000 for life plus medical benefits. Even in Disneyland, that's a lot of money.