Pensions-The whole mishmash in 497 words!

This is dedicated to commenters like TL for TL and skip3house.  Intelligent questions and discussion are always welcome.

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Now He Tells Us

A few weeks before he starts whatever gig Fox has available:
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This was at the rollout of the New Jersey Pension and Health Benefit Study Commission’s final report which, in part, enabled this delusion-of-competence addict with lines like:

An additional positive development has been the dedication of the State lottery to the pension plans. This has reduced the unfunded liability by $13.5 billion and will generate over $1billion annually to pension funding. This, in turn, has improved the State’s overall reported statutory funded ratio from 45% to 59%. (pages 1-2)

That any credentialed actuary would sign on to these lies (the line above and Christie’s assertion that the funding ratio is much better now than when he came in) without fear of censure speaks only to the ineffectuality of the ABCD process. They are belied in both the footnotes to the Commission’s report and what New Jersey is telling bond investors.

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Pensions-Energized Actions!

Reading comments is most interesting to me; a barometer of some sentiment.  I do enjoy an active dialog and always welcome discussions.  This is why I include my email and phone info.

In a prior posting one commentator states; “they (public pensions) must be punished!”  I ask myself how have MA machinists, MI Teamsters, IL firemen, or CA public servants have so injured this pitiable, erroneous wretch?  The answer is they have not.

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One Last Otiose Christie Pension Reform

The New Jersey Pension and Health Benefit Study Commission just issued their final report and it basically paints the Christie years, as diplomatically as appropriate, a waste on the pension reform side.

While since 2010 a start has been made on benefits reform, much more remains to be done. Intransigence, inaction, apathy and denial are habits the State can no longer afford when it is at risk of losing the budget flexibility necessary to respond to emerging challenges and crises. This is dangerous for every one. As events in both Flint, Michigan and Puerto Rico show, financial stress can lead governments to make bad decisions with unexpected, catastrophic consequences. New Jersey is not at that point yet, but should do everything in its power to ensure it does not get there.
New Jersey is certainly not Puerto Rico (which is beyond pay-go as they are using debt to pay retirees) yet. You don’t get to be the worst funded state retirement system in a nation of badly funded state retirement systems by chance. A vital component is coming up with reforms that wind up doing  nothing of any significance while providing the illusion of action. The last piece of this type of legislation that Chris Christie is likely to sign as governor came out of a Senate Committee this week:

It calls for stress testing and a disclosure of fees though in a njspotlight article on the legislation:

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PBGC Looking For Ideas

On their blog the Pension Benefit Guaranty Corporation (PBGC) expressed interest in ideas on what information to make available.

  • What PBGC data or content should be more readily available?
  • Which PBGC online service or data would you like to be easier to use?
  • Which PBGC service would you like to use on your mobile device?

You can submit your feedback to Opengov@pbgc.gov. Here is mine.

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National Retirement Fund Plan: Worse Than Central States?

The Central States, Southeast & Southwest Areas Pension Plan is, by participant count, the fourth largest multiemployer plan in the country whose demise is likely to take down the Pension Benefit Guaranty Corporation and eventually the entire US pension system. They naturally get a lot of attention to it but what about the third largest multemployer plan which is also in code red but has drawn little media attention nor has it applied to Treasury to cut benefits under MPRA? What is the National Retirement Fund of White Plains, NY up to?

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Multiemployer Pension Plans: Current Status and Future Trends

The Center for Retirement Research at Boston College released a special report that provides a good overview of the current status of multiemployer (union) plans. Excerpts follow which include some interesting charts that the authors developed mostly from 5500 data:

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