Secure Ohio Pensions?

In trumpeting his record in Ohio John Kasich mentioned:
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Last year the Mercatus Center ranked states by fiscal condition.  Ohio came in at 7.  By comparison New Jersey was 49.

But are Ohio public pensions really secure?

According to a story on cincinnati.com:

The bad news extends to Ohio’s trust fund solvency, in which it ranks ahead of only New Mexico and Alaska, due to large unfunded pension obligations to its state workers. These obligations will not be fixed overnight – they equaled more than half of total state income in 2013. Ohio’s long-running reluctance to fully fund its pension program threatens its ability to keep its promises to public sector retirees.

Based on the latest Ohio public pension actuarial reports the funded ratios are:

Ohio Public Employees Retirement System:83.8%

State Teachers Retirement System of Ohio: 69.3%

Ohio Police and Fire Pension Plan: 66.7%

Numbers that New Jersey plans can only dream of but, considering the actuarial games that went into getting those ratios that high, would anyone other than a politician or public plan actuary (whose job it is to think so) consider those pensions secure?
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Here is the Kasich clip in context where Christie gets to recite the economic talking points his staff settled on (getting rid of 10,000 state employees and something about creating more jobs than John O. Bennnett did in his 5 days as governor).
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9 responses to this post.

  1. Posted by Tough Love on February 7, 2016 at 2:41 am

    Cut those funding ratios by at least 1/3 if they were valued on the SAME basis (assumptions and methodology) that the US Government REQUIRES of Private Sector pension Plans, and you get a FAR more accurate picture of their true degree of “security’.

    In fact, if Private Sector Plans ………. with funding ratios under 60% using Private Sector assumptions/methodology …………. they would be barred by regulation from crediting any further pension accruals.

    Yeah ……. some “security”.

    Reply

  2. Posted by dentss dunnigan on February 7, 2016 at 7:22 am

    Do you think this guy is talking about NJ’s pensions ,the dollar figure is close to what NJ has in pensions ..Madoff Whistleblower Warns of 3 New Ponzi Schemes, 1 Bigger than Bernie’s….https://www.yahoo.com/finance/news/madoff-whistleblower-warns-3-ponzi-180039992.html

    Reply

    • Posted by Tough Love on February 7, 2016 at 7:29 pm

      I feel really sorry for these retiree who will be getting their pensions cut. Unlike the pensions typically promised Public Sector workers, THEIR pensions are anything BUT “grossly excessive”.

      Reply

  3. Posted by Anonymous on February 7, 2016 at 10:25 pm

    I feel sorry for TL, her taxes will rise tremendously!

    Reply

    • Posted by Tough Love on February 7, 2016 at 11:09 pm

      LOL ….. any increase in my taxes as a % of my income will pale in comparison to the % of your promised pension/benefits that will not be paid.

      Reply

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