Archive for the ‘Public Pensions – General’ Category

Illinois Comptroller Pension Debate – at a Table

The three candidates for the Office of Illinois Comptroller this November (incumbent Democrat Susana Mendoza, Republican Darlene Senger and Libertarian Claire Ball) had a lower profile debate which included a mention of whether cutting benefits to deal with the state’s pension debt should be on the table:
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The Consideration Model for public pension negotiations was explained by geo8rge in a comment on the last blog:

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Illinois Pension Debate – Not Even a Table

The question came in the middle of the Illinois gubernatorial debate tonight between Republican Gov. Bruce Rauner, Democratic challenger J.B. Pritzker, Libertarian candidate Kash Jackson and Conservative candidate Sam McCann. What will you do on the $129 billion hole in the retirement system for public employees?

First the would-be spoilers:
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And from the major party candidates:
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Summarizing the answers:

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Connecticut Pension Debate On the Table

The second question in the first Connecticut gubernatorial debate last week between Democrat Ned Lamont and Republican Bob Stefanowski was on the $100 billion hole in the retirement system for public employees:
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They seemed to agree on the $100 billion number but, as in the New Jersey gubernatorial debates last year, something was missing.

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Moody’s Has State Unfunded Pension Liabilities at $1.6 Trillion

In a research report released today Moody’s Investors Service says that unfunded US state pension liabilities surged in fiscal 2017 due to poor investment returns.

You need to be a subscriber to see the full report but here are highlights from their press release – and yes New Jersey ranked at the bottom of a category.

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Chicago Pension Data – 2017

At least FoxBusiness covers it:
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There was also some print coverage of the gimmick.

Two years ago we did a study of the Chicago plans based on data from actuarial reports. Updating we find benefits and liabilities increasing, funded ratios declining, while deposits and asset values remaining constant and therein lies the reason for this Pension Obligation Bond (POB).

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Rauh Testimony (3) Roadmap for Public Plans?

Joshua Rauh’s written testimony to the Joint Select Committee on the Solvency of Multiemployer Pension Plans (Bailout Committee) included this warning:

How Congress decides to address the multiemployer pension crisis may well set a precedent for how future legislators will deal with the possibility that they will face similar calls for bailouts of state and local pension systems. On their own accounts, using discount rates of around 7.1% under GASB 67, state and local pension systems were $1.7 trillion underfunded in the 2016 year. On the Treasury yield curve standard they were $4.0 trillion underfunded. The stronger their belief that the federal government will bail them out, the less discipline they will choose to impose upon themselves to address these problems.

I don’t see it.

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Jeremy Gold In Memoriam

Jeremy Gold’s obituary in P&I mentioned that there was no memorial service but rather a living wake last December. In that spirit ….

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