Pepperdine Forum on Public Pensions – Videos

The forum on public pensions held at Pepperdine University on 9/25/18 is now online. Some notable video excerpts:

Setting the stage:
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Mortality and discount rate fraud:
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Illinois Situation:
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How do you fix a problem like Connecticut?
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Illinois Can Pay and, if not, there are Pension Obligation Bonds and asset transfers:
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Full forum:
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19 responses to this post.

  1. Posted by Tough Love on October 9, 2018 at 10:01 am

    When I see concrete proposals to change to the law so that:

    (a) No compensation negotiations with Public Sector Unions/Association are required and ALL compensation decisions are solely done by State/City/Town management, and
    (b) No Elected Official or candidate running for office can accept ANY campaign contribution or in-kind Election support
    (c) ALL future employers are put in ONLY DC Plans with a contribution comparable to what Private Sector workers typically get from their employers, and to the extent achievable (with extreme effort to include as many CURRENT workers as is possible) the FUTURE service accruals for all CURRENT workers are also shifted to such DC Plans with the DB Plans frozen
    (d) Public Sector retiree healthcare subsidies are reduced to the level of typical private Sector employer-sponsored retiree healthcare benefit subsidies …….. a hair above NOTHING !

    THEN ………… I’ll believe they support REAL change (they’re STILL just “talking” and doing NOTHING productive)

    Reply

    • Still tilting @windmills

      Reply

      • Posted by Tough Love on October 9, 2018 at 6:55 pm

        As soon as I saw the cartoon, I new the idiot was back.

        Reply

      • Posted by Earth on October 9, 2018 at 9:21 pm

        Earth to Brother Love:

        I new it!

        Donald Rumsfeld:

        “Reports that say that something hasn’t happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns – the ones we don’t know we don’t know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.”

        Also, Pablo Picasso is not a cartoonist.

        Now you no.

        Reply

  2. Posted by geo8rge on October 9, 2018 at 1:18 pm

    Queensland Motorways Privatization:
    https://en.wikipedia.org/wiki/Queensland_Motorways

    Kathleen Kennedy Townsend @0:30:
    West Virginia attempted to replace DB with 401k. But the 401k returns were not high enough to satisfy labor and Gov Manchin (now senator Manchin on the Pension Select Committee) so they switched back.

    Pew Trust: WV ‘tremendous turnaround story’ for pensions
    https://www.wvgazettemail.com/news/politics/pew-trust-wv-tremendous-turnaround-story-for-pensions/article_b03a6abd-aa09-594f-8f4e-c947cab222bb.html

    35:06 If you make government employees pay to high a price they may quit and work for Oracle.

    36:00 you can’t go back and sue the governor of NJ.
    36:46 It is better to soak taxpayers than to soak retirees
    37:54 Detroit soaked bondholders. (If I remember right local institutions like the museum kicked in too.) What is the funding level for Detroit now?

    I think some mention of Prichard Al would be interesting. Pritchard had a cut of 66% of retiree pensions but gave a speculative pension increase if Pritchard revenues improved.

    A tale of the Prichard (AL) pension program
    https://link.springer.com/article/10.1057/pm.2012.11#Sec6

    Reply

  3. Illinois Can Pay and, if not, there are Pension Obligation Bonds and asset transfers:
    What a TOOL! His solution? TAXES!! Taxes! Taxes! It’s a DEBT! Paying off your bonds is MANDATORY! Make a commitment to make a payment. It MIGHT have to “crowd other things OUT”! Pension obligation bonds= GOOD! No, wait, GREAT! SELL one time assets like Midway Airport, SELL IT and out that $$ into the pension fund! GREAT IDEA!!!! “Pension funds have a “fiduciary duty” to pay their pension payments!”

    Total tool.

    Reply

    • Posted by boscoe on October 9, 2018 at 11:51 pm

      Terrific. Are retirees going to be paid with commemorative chunks of turnpike concrete? Or are these illiquid “assets” simply supposed to make the systems look better funded than they are so that future contributions can be lowered while someone figures out how to sell the turnpike for cash and IOUs?

      Reply

      • Posted by Tough Love on October 10, 2018 at 12:48 am

        One “goal” could be to tojustify reinstating COLAs via transfers such as the Lottery or Tpk being counting as “assets” (apparently even when the deal expires as is the case of the Lottery) and thereby increasing the funding ratio.

        Reply

      • Posted by Anonymous on October 10, 2018 at 8:57 am

        GASB underfunding is secondary to cash flow. Putting illiquid assets into the pension funds (TPAF & PERS) and/or switching actives into a 401k will not help but HURT the funds’ cash flow.

        Reply

        • Posted by Tough Love on October 10, 2018 at 10:17 am

          The TAXPAYERS should be worring about the CONTINUED crediting of pension accruals under the now-ludicrously-excessive DB Plan formulas and provisions. Under ANY DC Plan THAT BS will end.

          A relatively SHORT TERM increase (via DC Plans) is a MUCH MUCH MUCH better option for taxpayers, and if we run out of “cash” to pay the now unnecessary, unjust, unfair to taxpayers, clearly unaffordable, pensions (AND benefits) that were ONLY GRANTED as a result of collusion between the Public Sector Union and our self-interested Elected Officials, don’t pay them and tell the workers/retirees ……….. “tough luck”, greed HAS consequences.

          Reply

          • Posted by Anonymous on October 10, 2018 at 11:17 am

            And your response is exactly why there has been nor probably will be any serious movement on P&B reform. Keep up the good work and take everything down in the process!

          • Posted by Tough Love on October 10, 2018 at 2:11 pm

            Responding to Anonymous …………

            And YOUR response to me is what I would expect from one riding the collecting end of this THEFT from the Taxpayers.

            Some advise from a financial “professional” (me) ………. if you are a Public Sector worker, save mightily OUTSIDE of your pension and retiree healthcare benefits, as it is VERY unlikely that in NJ (and many other places) that there will not be VERY material reductions, and even for those already retired.

          • Still paintin’ with a broad brush, podnah.

          • Posted by Anonymous on October 10, 2018 at 4:29 pm

            Quite the analogy but most definitely a finger painter.

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