STUMP » Articles » 80 Percent Funding Hall of Shame: February 2015 Round-up » 2 March 2015, 08:44

Where Stu & MP spout off about everything.

80 Percent Funding Hall of Shame: February 2015 Round-up  

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2 March 2015, 08:44

My last post for the hall of shame was a few weeks ago, but I figure I might as well clear out the leftover stories from February.

I did either email or leave comments on the stories, so unlike with Hilary Russ, I hope these won’t repeat.

From an Editorial of the Press Enterprise:

The city of Riverside has been able to manage its pension obligations better than many other local governments. Pension funds have generally stayed well above 80 percent, a level cited by the federal Government Accountability Office as a standard for well-funded systems. City officials must be vigilant in ensuring that pension costs are contained.

So yes, they at least named their “experts.”

Here’s that GAO report, btw:

Most state and local government pension plans have enough invested
resources set aside to fund the benefits they are scheduled to pay over the
next several decades. *Many experts consider a funded ratio (actuarial value
of assets divided by actuarial accrued liabilities) of about 80 percent or better
to be sound for government pensions.*

OH WAIT! The GAO didn’t say that 80% is okay. Just that “many experts” consider that sound.

I WANT NAMES.

If nobody is willing to go on record with their name and professional reputation on the line, then I humbly submit this factoid is false.

Next up, Steve Wilson at Mississippi Watchdog:

According to its most recent annual report, the pension system — which serves most state, county and municipal employees — still has $14.4 billion in unfunded liabilities and is still far below the 80 percent funding level, considered a benchmark for a healthy pension fund.

Not even an “experts say” there.

Finally, Michael Dresser at the Baltimore Sun:

Corridor funding had left the pension system severely underfunded, prompting Gov. Martin O’Malley to propose a sweeping reform package that set a goal of achieving by 2023 an 80 percent funding level — generally considered adequate for a public pension plan.

Anyway, nothing particularly new with these approaches.

My 80 percent funding Hall of Shame is up to 21 entries since the end of October 2014.


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