City Pensions

Defined Benefit plans covering city employees in Detroit, Chicago,  and Philadelphia are on schedule to go broke within this decade.

Using hard numbers from available valuation reports on 25 plans in 17 of the largest US cities and consistent with the methodology used in our  study of state plans we conservatively calculate a funded ratio for these plans of 64.46% with 9.63% of assets being paid out annually.

Other Highlights:

Philadelphia is paying out over 20% of it’s money annually to retirees forcing  contributions to rise near that level to put off projected bankruptcy until 2018.

Plans in El Paso, San Antonio, Dallas Police & Fire and, surprisingly,  Washington, DC, are adequately funded, for now.

Chicago plans, across the board, will run out of money by 2019.

List of plans by city-size and bankruptcy year.

Underlying data.

Links to Valuation Reports:

1….New York, New York

……Board of Education

….. Employees

…...Fire Department

……Police

……Teachers

2….Los Angeles, California

….. Employees

…...Fire and Police

……Water and Power

3… Chicago, Illinois

……Firemen’s

……Laborers’

……Municipal Employees

……Policemen’s

……Teachers

4….Houston, Texas

….. Employees

……Firefighters

……Police

5….Phoenix, Arizona

6… Philadelphia, Pennsylvania

7… San Antonio, Texas

8… San Diego, California

9… Dallas. Texas

……Employees

……Police & Fire

10. San Jose, California

……Employees

……Police & Fire

11. Detroit, Michigan

……General Retirement System

……Police & Fire

12. Jacksonville, Florida

13. San Francisco

15. Austin, Texas

……Employees

……Fire

……Police

17. Forth Worth, Texas

20. Boston, Massachusetts

21. Baltimore, Maryland

……Employees

……Fire & Police

22. El Paso, Texas

……Fire

……Police

23. Seattle, Washington

24. Denver, Colorado

26. Milwaukee, Wisconsin

……Employees

……Police

27. Washington, DC

36. Fresno, California

……Employees

……Fire & Police

42. Miami, Florida

……Fire & Police

……General Employees

57. Cincinnati, Ohio

61. Pittsburgh, Pennsylvania

…...Evanston, Illinois

One response to this post.

  1. Posted by Joel L. Frank on August 16, 2012 at 2:55 pm

    New York City teachers/retirees have collectively saved $12 billion in their fixed interest 403(b) accounts. The City borrows this money at an annual interest rate of 7.0 percent. The City could borrow money for one year at 0.5 percent.

    Is this the way to run a candy store?

    Reply

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