Ventura County Pension Reform Would Save $460 Million, Reduce Debt $1.8'billion

Reason Foundation

By Anthony Randazzo, Director of Economic Research

Summary: If adopted, the Initiative for Pension Fairness and Sustainability would save Ventura County $5.4 million in cash flow over the first two years, $51.6 million in cumulative savings over five years of reform, and $460 million in total savings over 15 years — all while separately eliminating $1.8 billion in pension debt. In the long run, moving to a new defined-contribution system would protect taxpayers from unfunded liabilities and investment return risks in public retirement systems.

The Problem: The Ventura County Employees’ Retirement Association (VCERA) is poorly positioned to stay properly funded in the coming years, and local taxpayers may be forced to pick up a hefty tab of unfunded liabilities if substantive changes are not made in the near future.