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  #721  
Old 09-03-2013, 09:37 AM
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SAN BERNADINO, CA

http://calpensions.com/2013/09/03/ca...-do-they-want/

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A federal judge ruled San Bernardino eligible for bankruptcy last week, despite opposition from CalPERS, and then pressed the city to promptly deliver something the big pension fund wanted prior to the ruling: a plan to cut debt and exit bankruptcy.

A sketchy plan issued by San Bernardino last November called for a “fresh start” that would “reamortize CalPERS liability over 30 years,” perhaps in a way that would “realize value of $1.3 million per year starting fiscal year 2014.”

U.S. Bankruptcy Judge Meredith Jury said last week that San Bernardino should prepare an outline or “term sheet” of its bankruptcy exit strategy for mediation to be conducted soon by retired U.S. Bankruptcy Judge Gregg Zive of Reno.

After briefly conferring with city finance officials, an attorney for San Bernardino told the judge the city could have a term sheet ready by the end of the year or early January.

“You are making my (eligibility) ruling look bad,” Judge Jury told attorney Paul Glassman. “You are digging yourself in a hole, and you are going to get a reconsideration. Think some more.”

The judge was told that the city needs a CalPERS valuation due in mid-October, a fiscal 2011-12 city budget audit due in a month, a ruling on a union contract, and the outcome of a November election city council election that includes a recall.
.....
Since the judge posed the question, Dubrow said he would offer his theory about what CalPERS expected to gain if the judge dismissed the San Bernardino bankruptcy: “tremendous leverage.”

If San Bernardino was not in bankruptcy, Dubrow said, the city pension plan could be terminated, allowing CalPERS to place a lien on city assets. The judge blocked a CalPERS attempt to sue San Bernardino for payment in state court.

Last April the CalPERS board approved a proposal to sponsor legislation placing a “present lien” on local government assets without terminating pension plans. The bill is not expected to be introduced until next year.
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  #722  
Old 09-03-2013, 10:05 AM
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SAN BERNADINO, CA

http://calpensions.com/2013/09/03/ca...-do-they-want/

U.S. Bankruptcy Judge Meredith Jury said last week ...
Judge Jury?

Really?
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  #723  
Old 09-03-2013, 10:46 AM
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Judge Jury?

Really?
Would you prefer that Judge Judy decide?
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  #724  
Old 09-03-2013, 03:28 PM
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NEW YORK

http://ai-cio.com/channel/NEWSMAKERS..._Pensions.html

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(August 26, 2013) – Scott Stringer, a candidate in the November 5 election for New York City comptroller, has promised to prioritize sustainable investment practices for the city’s $140 billion pension system.

The current Manhattan Borough president would establish the Office of Sustainability Management within the Comptroller’s Officer to “ensure that the City operates, invests, and spends in environmentally sustainable ways to save taxpayer money and improve government performance,” according to his platform documents.

Stringer’s agenda points to the estimated $30 billion in damages wreaked by Hurricane Sandy as evidence of the fiscal upside of environmental consciousness.

Ugh.
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  #725  
Old 09-04-2013, 10:23 AM
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I have not met a political candidate yet who stops a hurricane. All else is just hot air blowing from their mouth
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  #726  
Old 09-04-2013, 02:51 PM
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Default A useful reference

Excel worksheet with 50 state funding ratios
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  #727  
Old 09-04-2013, 02:55 PM
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Default from whence the table came

http://www.plansponsor.com/State_Pen...Trillions.aspx
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  #728  
Old 09-04-2013, 03:13 PM
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to quote this

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States with the lowest funded ratio include:

-Illinois (24% funded);
-Connecticut (25%);
-Kentucky (27%);
-Kansas (29%); and
-Mississippi, New Hampshire and Alaska (30%).

In addition to low-funded ratios, Alaska, Ohio and Illinois also have some of the largest unfunded liabilities per person weighing in at $32,425, $24,893 and $22,294, respectively.
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  #729  
Old 09-04-2013, 03:52 PM
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Default Notes on spreadsheet

1) The spreadsheet uses (for what reason?) the actuarial value of assets for comparison with the market value of liabilities.

2) They don't really explain how they calculated the liabilities. Are they just a discount rate change against liabilities developed under EANC or PUC?

3) Alaska $/capita doesn't reflect the Alaska Common Fund (oil money) from which contributions to the plan are made (left pocket to right pocket) and which supports demogrants to Alaskans.
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  #730  
Old 09-04-2013, 05:17 PM
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They don't really explain how they calculated the liabilities. Are they just a discount rate change against liabilities developed under EANC or PUC?
At the bottom of the report they describe their method of calculating the liabilities.

Quote:
Plan liabilities were discounted according to the 15-year Treasury bond yield as of August 21, 2013. That rate was 3.225 percent.

The formula for calculating the market value of a liability requires first finding the future value of the liability. That formula, in which "r" represents a plan's assumed interest rate, is FV = AAL x (1+r)^15. The second step is to discount the future value to arrive at the present value of the market valued liability. That formula is PV = FV / (1+r)^15, in which "r" represents the risk free discount rate.
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