I Want You To Keep These Two Words In Mind Over The Next Couple Of Months: State Pensions

Posted: November 26, 2008 in Economy, Politics

New Jersey

N.J. lawmakers fret over pension-fund losses


State pension fund fallout: Billions disappear


That forecast was reinforced Wednesday by the actuaries for the state retirement system who told the joint pension committee that Maryland would need increase its pension contribution more $100 million for both fiscal 2010 and 2011. The current payment is over $1.1 billion, and that’s before major payments for retiree health care are thrown in.


Funding levels for Hawaii’s pension system remain a concern having declined from 95% in 2000 to 67.5% as of June 30, 2007, with the unfunded liability exceeding $5 billion. (more…)

Other States

The Illinois Municipal Retirement Fund is down about 21 percent, and taxpayers might be called upon to pay for a bailout. In New York, where state and local governments are struggling with large projected deficits, the state pension plan has dropped 20 percent since April.

The California Public Employees Retirement System has lost $67 billion during the last year, and had a total portfolio value of $192.7 billion two weeks ago, down from $260.4 billion.

And here in Colorado, Meredith Williams, who heads the Colorado Public Employees Retirement Association, announced in a letter to plan participants on Oct. 24 that “the market value of assets as of Oct. 15, 2008, was $31 billion, down from $41 billion at the beginning of 2008.” (more…)

A big chunk of President-elect Obama’s economic stimulus package is banking on putting 2.5 million people to work by rebuilding bridges, roads, schools and other public utilities. In other words, these folks will be employed by the government.

Now ‘splain to me how both Federal and state government is going to cover this when they are barely keeping up with pensions. Let’s not get into state layoffs.

Robert Morgan asks some very good questions in his commentary “Political Lagniappe: Proposed stimulus package raises questions galore”.


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