|Public Pensions: Some Question, Some Politicize;
Message from the RTC
From the RTC:
We still need your letters to the Mayor, City Councilors, and Retirement Board Members expressing your need of an increase in the COLA base. Many cities and towns have already gone to $15,000, $16,000, and even $18,000 since 2011. Boston is among the few who have not. If they don’t hear from you, there will be no raise. You can’t expect others to do what you should do. Please send your letters to the BTU-RTC Legislative Committee, and we will forward all of them. We need the letters ASAP.
From the New York Times, “Some questions about pension liability:”
“A panel of risk experts sees a teachable moment in Detroit’s bankruptcy and pension woes.”A blue-ribbon panel of the Society of Actuaries — the entity responsible for education, testing and licensing in the profession — says that more precise, meaningful information about the health of all public pension funds would give citizens the facts they need to make informed decisions.
“In a report to be released on Monday, the panel will recommend that pension actuaries provide plan boards of trustees and, ultimately, the public with the fair value of pension obligations and estimates of the annual cash outlays needed to cover them. That means pension officials would disclose something they have long resisted discussing: the total cost, in today’s dollars, of the workers’ pensions, assuming no credit for expected investment gains over the years.”
Again from the New York Times, “Pension troubles in New Jersey: Christie raises overhaul again:”
“When Gov. Chris Christie of New Jersey overhauled the state’s pension system in 2011, he celebrated it as a bold, bipartisan step toward paying down the state’s costly promises to its retired workers. Some would have to work longer, some would lose inflation adjustments, and both workers and taxpayers would have to pay more into the system.
“All of that helped lower the retirement system’s overall costs, but the new system needed a lot more money right away and the law did not provide it. Instead, its eight-year schedule of steadily rising payments was not enough to cover the system’s true costs and stop it from sliding further into debt.”