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Payback Time
- By Jerry Taylor
- Published 06/23/2010
- Pension Watch
The New York Times has been running a series of article dealing with the financial challenges facing local and state governments. They make for interesting reading as they point out some of dangers facing us. Fortunately, Washington State’s pension system remains in good health. LEOFF 1 is healthier than any other state pensions. We remain at some risk because our pension funding is pooled with all of the other systems but there is little likelihood that LEOFF 1 will ever be pulled out of Combined Pension Trust. I expect that at some point they will try to apply a different accounting formula to the LEOFF 1 pension because of its status as fully funded. They only thing that will do is to eliminate the paper surplus.
Always keep in mind that the State does not want LEOFF 1 to go into to deficit because that means they would have to make contributions. There are just not enough active members left to make a difference even if they reinstituted contributions.
In Budget Crisis, States Take Aim at Pension Costs
Read this article. It is a good discussion of how other states are trying to deal with their pension costs. For us the important issue is that most states seem to recognize that they cannot change the benefits of those already in the system. As they make changes to their systems the changes can only affect new hires. This is consistent with Washington State case law.
http://www.nytimes.com/2010/06/20/business/20pension.html?pagewanted=2&ref=payback_time
State Debt Woes Grow Too Big to Camouflage
This article is an interesting discussion of the impact of state debt.
New Hampshire was recently ordered by its State Supreme Court to put back $110 million that it took from a medical malpractice insurance pool to balance its budget. Colorado tried, so far unsuccessfully, to grab a $500 million surplus from Pinnacol Assurance, a state workers’ compensation insurer that was privatized in 2002. It wanted the money for its university system and seems likely to get a lesser amount, perhaps $200 million.
http://www.nytimes.com/2010/03/30/business/economy/30states.html?ref=payback_time
Public Pension Funds Are Adding Risk to Raise Returns
States and other bodies of government are seeking higher returns for their pension funds, to make up for ground lost in the last couple of years and to pay all the benefits promised to present and future retirees. Higher returns come with more risk.
http://www.nytimes.com/2010/03/09/business/09pension.html?ref=payback_time
Padded Pensions Add to New York Fiscal Woes
And we thought we had a great pension.
In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year.
http://www.nytimes.com/2010/05/21/business/economy/21pension.html?ref=payback_time
Always keep in mind that the State does not want LEOFF 1 to go into to deficit because that means they would have to make contributions. There are just not enough active members left to make a difference even if they reinstituted contributions.
In Budget Crisis, States Take Aim at Pension Costs
Read this article. It is a good discussion of how other states are trying to deal with their pension costs. For us the important issue is that most states seem to recognize that they cannot change the benefits of those already in the system. As they make changes to their systems the changes can only affect new hires. This is consistent with Washington State case law.
http://www.nytimes.com/2010/06/20/business/20pension.html?pagewanted=2&ref=payback_time
State Debt Woes Grow Too Big to Camouflage
This article is an interesting discussion of the impact of state debt.
New Hampshire was recently ordered by its State Supreme Court to put back $110 million that it took from a medical malpractice insurance pool to balance its budget. Colorado tried, so far unsuccessfully, to grab a $500 million surplus from Pinnacol Assurance, a state workers’ compensation insurer that was privatized in 2002. It wanted the money for its university system and seems likely to get a lesser amount, perhaps $200 million.
http://www.nytimes.com/2010/03/30/business/economy/30states.html?ref=payback_time
Public Pension Funds Are Adding Risk to Raise Returns
States and other bodies of government are seeking higher returns for their pension funds, to make up for ground lost in the last couple of years and to pay all the benefits promised to present and future retirees. Higher returns come with more risk.
http://www.nytimes.com/2010/03/09/business/09pension.html?ref=payback_time
Padded Pensions Add to New York Fiscal Woes
And we thought we had a great pension.
In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year.
http://www.nytimes.com/2010/05/21/business/economy/21pension.html?ref=payback_time
