Posts Tagged ‘gasb’

“Sore Loser” With “Limited Credibility”

That’s what a group of 70 Public Plan actuaries* at this month’s EA meeting view was of Moody’s and their revised rating methodology for US states as it relates to valuing unfunded pension liabilities:

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Government Accounting or Criminal Conspiracy

The 2011 Union County audit is finally out and Note 15 on OPEBs is garbage*.  I could go into detail on that item but instead, let’s examine the stakeholders that maintain this dysfunctional system of reporting liabilities: accountants,  actuaries, rating agencies, municipal bond buyers, politicians, taxpayers, regulators, public employees.  None have an interest in revealing the truth.

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Will New Accounting Rules Force NJ to Put Billions More Into Pension Payments?

That’s the headline on a story posted today on www.njspotlight.com which recounted some interesting funding history that should have made the answer to the headline question obvious:

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After the ARC

I attended the Enrolled Actuaries’ conference this week and never has the gulf between private and public plan actuaries been so wide.

In the private sector we have no discretion and only rules, sillier than ever*, to regurgitate onto valuation reports.  For funding, we are told what method and mortality table to use and have a severely limited choice of interest rates.

Public plan actuaries, on the other hand, will soon have no funding rules other than the ones they come up with and the Society of Actuaries is asking for suggestions.

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Last GASP for Public Pensions

The Governmental Accounting Standards Board (GASB), a nonprofit based in Norwalk, Conn., released a draft of changes to pension accounting rules today that, come 2014, would have the effect of increasing the Annual Required Contribution (ARC) for practically all public pension plans and might forestall bankruptcy for many of those plans…..that is, if anyone had to take them seriously.  They don’t.  Governments sponsoring pensions are free to ignore any and all rules as regards funding which is why henceforth I will refer to this new set of suggestions as Governmental Accounting Standards Proposals (GASP).

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