Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Pension - Social Security
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Fill in a brief DW Simpson Registration Form
to be contacted when new jobs meet your criteria.


Reply
 
Thread Tools Search this Thread Display Modes
  #511  
Old 03-15-2019, 02:31 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

Yes, it's a very valuable promise, isn't it?
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #512  
Old 03-15-2019, 02:32 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

ILLINOIS
OPEBs
OPEB OBLIGATION BONDS

(what a horrid idea)

https://wirepoints.org/oobs-the-next...s-politicians/

Quote:
OOBs: The next borrowing idea for Illinois politicians?
Spoiler:
Don’t be surprised if Illinois politicians say they want to pursue yet another bad borrowing idea in the near future. This time the excuse won’t be to pay off pensions. Instead, it will be for health insurance benefits owed to government retirees – benefits that are formally known as “other post-retirement benefits,” or OPEB.

S&P Global Ratings recently wrote about the increase in retiree health debts nationally. Most states have set aside little to nothing to pay for them, but there is increasing pressure to do so as accounting rules change. Consequently, S&P reports that states might try to borrow money to help pay down those retiree health debts: “…many governments are seeing large new OPEB liabilities on their balance sheets that are growing due to insufficient contributions. In response, governments are looking to OPEB obligation bonds (OOBs) as a way to address funding concerns. Depending on the circumstances surrounding the OOB, issuance could have rating implications.”

Illinois has $73 billion in health debts and it’s likely politicians won’t be able to resist the temptation to borrow money to pay some of that debt down. But they should be stopped at all costs. More borrowing will only allow them to kick the can, just as they’ve done on pensions time and again. Instead of more debt, lawmakers should pursue reforms that dramatically slow down the growth in benefits.

Illinois’ retiree health insurance debt is equal to more than half the state’s $134 billion in officially-reported pension debt. Add them together and that’s more than $200 billion in state retirement debt.



The $73 billion is how much the state owes, in today’s dollars, in health insurance benefits over the next three decades. The state has set nothing aside for that obligation, so it’s 100 percent unfunded.

State workers get a 5 percent discount on their retiree health insurance premiums for every year they work. And those that work 20 years or more get retiree health insurance benefits for free.

In total, the state will pay out over $166 billion in claims through 2055, according to the programs’ actuaries. The state has been paying out more than $1 billion a year to retirees recently, but that number will jump to nearly $6 billion in 25 years (see Appendix 1). That, along with ever-growing pension costs, will continue to crowd out spending on everything else in the budget.

For full details on Illinois retiree health debt, read: Illinois’ other debt disaster: $73 billion in unfunded state retiree health insurance benefits.



S&P warned about those growing costs in its recent report: “costs likely will increase rapidly as the medical cost trend has been approximately 6.1% for each of the past five years, far outpacing the consumer price index…Also, baby boomers are expected to retire at an increasing pace for the next 10 years, placing a further burden on providers of retiree health care. Escalating contributions present intensifying budgetary stress for municipalities and potential stress to overall creditworthiness.”

Illinois’ retiree health insurance debt is one of the biggest in the nation. Every Illinois household is on the hook for over $11,000 in health debt. Only households in six states owe more.



The debt is getting more attention as accounting rules get stricter and force governments to deal with them. It’s even more alarming in Illinois since the Supreme Court said in a 2014 ruling that these benefits can’t be reformed because of the state’s pension protection clause.

For a long time Illinois politicians have been able to ignore retiree health debts. They thought they’d have the option to change benefits if a cash crunch ever came.

But the court says they don’t have that option. And lawmakers refuse to consider the only real solution: an amendment to the pension and benefit clause in the constitution.

So, look for Illinois pols to try to take the OPEB bond idea and run with it.

We’d go into why those bonds are a bad idea, but we don’t need to. We recently explained why their identical twin, pension obligation bonds (POBs), are nothing more than a bad gamble with taxpayers’ money. We wrote extensively about Mayor Emanuel’s proposed Chicago POB in 2018. And we criticized Rep. Robert Martwick’s idea for the state to borrow over $100 billion in POBs early last year.

Martwick’s reckless proposal to borrow $107 billion in Illinois pension bonds
Rahm Emanuel’s latest can kick: Borrow $10 billion for Chicago pensions
$125,000: The pension debt each Chicago household is really on the hook for
How Emanuel is misleading you on the city’s debt
Pension Obligation Bonds Are Like Big, Fat, Dangerous Margin Loans For Stock
Chicago CFO’s Stupendously Bad Timing On Her Last Pension Obligation Bond
Emanuel’s real motivations for Chicago’s $10 billion pension bond plan
A plan to make “bad pension borrowing” good? Greg Hinz is mighty confused
Liquidation Sale. That’s How To Think About Chicago’s Proposed Pension Bond
Emanuel’s misleading pension bond presentation to Chicago aldermen
Chicago’s bond scheme: What an honest press conference with Emanuel might look like
If Emanuel won’t kill his $10 billion pension bond proposal, the markets might
Appendix

The state has consistently paid far less toward its retiree health insurance obligations than its actuarially-required contributions (ARC) call for. Because the state only pays the insurance claims on a pay-as-you-go basis, its payment shortfalls have been $2.5 to $3 billion each year.




__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #513  
Old 03-15-2019, 03:41 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

CALIFORNIA

https://www.marinij.com/2019/03/05/d...or-many-years/

Quote:
Dick Spotswood: We will be paying unfunded pension liabilities for many years

Spoiler:
I’ve always been curious how California’s Legislature allowed public employee pension programs to get out of hand. Until the late 1990’s, the California Public Employees’ Retirement System, the California State Teachers’ Retirement System and local variants including the Marin County Employees’ Retirement Association were fully funded and fiscally sound.

Today, almost every Golden State governmental agency — including schools — faces massive debt to pay off legally binding pension promises. An unfunded liability is the disparity between the amount of a pension plan’s obligations and its assets’ current value.

Anything short of 100 percent funded implies that when the piper needs to be paid, taxes will need to rise to cover the deficit or public services are diminished.

There’s no free lunch for schools, since 2014’s AB 1469 diverted money that once would have gone for smaller class sizes and teachers’ raises to pension deficit reduction. At least our grandchildren may see some relief, since the legislation’s goal is to be fully funded by 2046. Prudent municipalities are following the same path, gradually paying down pension debt at the high cost of deferred street repair and fewer police.

Money being fungible, no matter what school tax proponents say, funds derived from those ballot measures are used to offset the negative impacts of diverting existing funding to pensions.

It started in 1999, when CalPERS proposed that as America was enjoying good times (the big question then was how to spend the Clinton federal surplus) it was only fair that public employee retirements be enriched. Thanks to an IJ reader, I’ve reviewed CalPERS’ old written broadside, “Addressing Benefit Equity: The CalPERS Proposal,” which explains how nothing could go wrong.

As William D. Crist, then president of the CalPERS board, said, “This is a special opportunity to restore equity among CalPERS members without costing a dime.”

Who can resist undefined “equity” at no cost?

Why would Michael Flaherman, chair of CalPERS’ Benefits and Programs Administration Committee, mislead the Legislature when saying, “This package does not in any way threaten the soundness of the CalPERS fund”? A better question is, why did the Legislature accept his word and why did Gov. Gray Davis sign SB 400, the resulting pension-enhancing legislation?

Optimism was the in the air when CalPERS guaranteed “certain aspects of the benefit equity proposal will be funded by excess assets.” In 1999, some plans were actually overfunded. CalPERS’ black letter promise: “No increase over current employer contributions is needed for these benefit improvements” and the “CalPERS fund will remain fully funded.” No ifs, ands or buts. Their statements are firm and definitive. They were also dead wrong. Starting with the 2008 Great Recession, “excess” assets evaporated.

Fast-forward 20 years. Today, CalSTRS is only 63 percent funded. That’s a $107 billion unfunded pension liability for teachers and support staff. CalPERS faces $400 billion in unfunded retirement costs including $254 billion in pension liabilities and $147 billion for retiree health care. Those Marin agencies belonging to MCERA, our home-grown pension scheme, face $425 million in unfunded debts.

California isn’t an outlier. The Pew Charitable Trust reports the national average is 66 percent of public retirement obligations are unfunded. Only four states — New York, South Dakota, Tennessee and Wisconsin — have at least 90 percent of long-term pension commitments funded. It’s not a red-blue divide. Democratic-led states tend to over-promise their unionized employees and GOP-run states penny-wise, pound-foolishly shortchange necessary funding to keep current taxes low.

In California, an unskeptical Legislature dominated by Democrats aiming to please their key constituency — public employee labor — eagerly accepted CalPERS’ misinformation and abysmally inaccurate actuarial assumptions. Today and for years to come, Californians will pay the price.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #514  
Old 03-15-2019, 03:42 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

DIXON, ILLINOIS

https://www.saukvalley.com/2019/03/1...-wait/abazxoh/

Quote:
Can City Council afford to wait?
Mayor uneasy with council’s idea of waiting to see what state does before addressing pension problem

Spoiler:
DIXON – The city will likely hold off on deciding a path for a big-picture solution to growing pension obligations to see what changes might take place on the state level in the next year or so.

The City Council recently discussed how to address increasing pension costs, but the majority are leaning toward keeping the status quo for fiscal year 2020, which begins May 1.

Councilman Dennis Considine said staff spent a lot of time creating a balanced budget and they shouldn’t rock the boat at the “11th hour.”

The council has had a handful of budget work sessions the last few weeks, and a draft budget will be put on file Monday, with the council scheduled to vote on it next month.

Mayor Li Arellano Jr. said they’re not doing enough and they need to pay more than just the required annual contribution, which totals about $1.9 million for police and fire pensions.

Arellano said he isn’t comfortable moving forward without a longterm plan, and it’s better to pay more into the pensions in a good economy rather than waiting for a downturn.

“If we let our funds tread water in a good economy, we’re not doing enough,” he said. “The time to invest is when we’re doing well, and pensions are the ultimate long game.”


The city should be looking at cuts, a hiring freeze, and a variety of other ways to put more money toward pensions, Arellano said.

Councilman Ryan Marshall said they’ve had months to discuss pursuing a big solution but didn’t, and small amounts aren’t going to do much.

The city’s fire and pension systems are about 51 percent funded, and throwing an extra $500,000 into them would move the needle up 1 percent, City Manager Danny Langloss said. Putting $3 million into them would increase the funding level about 6.5 percent and lower the annual payment by more than $300,000.


Possible state legislation includes changing the city pension systems mandate to be funded 80 percent by 2050 rather than 90 percent by 2040, which would ease the annual pension costs for municipalities.

The city’s pension contributions are based on being 100 percent funded by 2040, but another option being discussed is to fall back to the 90 percent model. Arellano said the savings from going that route should be injected into the fire pension system to try to get closer to the $10 million fund mark that would allow for more flexible investing opportunities and possible higher returns.

The council is also discussing changes for FY20, which include hiring an extra employee and putting more money toward grant writing.


The new street department position, which would cost about $70,000, would split the employee’s time between doing public works projects and maintaining the riverfront with the goal of shadowing John Groshans, who the city contracts with to maintain the riverfront.

Groshans, who was named Dixon’s Citizen of the Year in 2016 for his passion and hard work on the riverfront, had a heart attack last year but returned to work shortly after.

The city is hoping to have a plan in place before he eventually retires.


The proposed budget also earmarks $30,000 for grant writing, and $20,000 of that would go toward a grant writer. The other $10,000 would be for a benefit cost analysis that would be needed if the city chose to apply again for the U.S. Department of Transportation BUILD (Better Utilizing Investments to Leverage Development) grant to build a pedestrian bridge across the river and extend the bike path.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #515  
Old 03-15-2019, 03:55 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

KENTUCKY

https://www.wkdzradio.com/2019/03/14...ntucky-senate/
Quote:
Pension Relief Bill Approved By Kentucky Senate

Spoiler:
A bill that will provide relief for quasi-governmental agencies from rising pension costs was approved by the Kentucky Senate Wednesday.

The state Senate approved House Bill 358 by a 25 to 12 margin. The bill will make changes to the retirement plans for regional universities and quasi-governmental agencies in order to give them a financially viable mechanism to continue to operate while still paying for as much of the unfunded liability inside the pension as possible for their employees.

The first section of the bill addresses the universities. It would allow, but not require, the state’s regional universities to stop participating in the KERS by July of next year. University employees hired before 2014 could stay in KERS or join a defined contribution plan. All employees hired after 2014 would be required to join the defined contribution plan, similar to a 401(k) retirement plan.

The second section of the bill addresses the quasi-governmental agencies who participate in KERS. These agencies could also stop participating but their employees’ pensions would be frozen. They could start participating in a defined contribution plan that would also be offered to all new hires.

For groups who stopped participating in KERS, HB 358 contained formulas, in the form of loans through the retirement system, for the universities and quasi-governmental agencies to pay for their share of the unfunded liability.


https://www.sfgate.com/news/article/...l-13689176.php
Quote:
The Latest: Lawmakers agree to borrow $75 million

Spoiler:
FRANKFORT, Ky. (AP) — The Latest on spending and pension bills before the Kentucky legislature (all times local):

Signup Top O' The Bay
TOP O' THE BAYDAILY NEWSLETTERSFGATE's top stories from across the Bay Area.
You agree to our Terms of Use. Your information will be used as described in our Privacy Notice.
Enter your email address
6:45 p.m.

RECOMMENDED VIDEO
Kentucky lawmakers have agreed to borrow $75 million to fix up the park system and woo companies to locate in Kentucky.

House Bill 268 would borrow $50 million for maintenance projects at Kentucky's sprawling state park system plus another $25 million for economic development.

The Senate approved the bill 36-0. The House approved the bill 76-20. It now heads to Gov. Matt Bevin's desk. He has 10 days, not including Sunday, to sign the bill, veto it or let it become law without his signature.

The new spending comes after lawmakers in the Republican-dominated legislature agreed Wednesday to lower revenue by $105 million a year so they could give a tax break to some banks and exempt nonprofits from some sales taxes.

___

3:35 p.m.

The Kentucky House of Representatives has rejected a bill that would let some entities leave the struggling pension system while paying less than they owe.

House Bill 358 would let quasi-governmental entities like universities and public health departments leave the Kentucky Employees Retirement System without paying what they owe. State officials said it could cost the already underfunded system as much as $1 billion.

The state Senate approved the bill by a vote of 25-12 on Wednesday, arguing it would protect the entities that cannot afford skyrocketing retirement contributions for their employees. But Thursday, the House rejected the bill. They sent it back to the Senate.

Lawmakers have to reach a compromise by midnight or they will lose the ability to override a potential veto by the governor.

___

12:30 p.m.

Kentucky's legislative leaders have agreed to borrow $75 million to fix up the park system and bolster its efforts to attract businesses to the state.

House Bill 268 would borrow $50 million for the park system and $25 million for economic development. It would cost taxpayers $3.1 million in payments next year, money that would come from the state's $130 million in reserves.

The House and Senate are scheduled to vote on the proposal by midnight on Thursday.

The deal comes one day after lawmakers voted to reduce revenue by $105 million a year to give a tax break to locally owned banks and exempt some nonprofits from sales taxes. House lawmakers are also considering letting some entities leave the pension system while paying less than they owe.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #516  
Old 03-15-2019, 03:57 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

HARTFORD, CONNECTICUT
FORFEITURE

https://www.courant.com/politics/hc-...bvy-story.html

Quote:
Judge yanks pension of former Hartford Mayor Eddie Perez

Spoiler:
A Superior Court judge has revoked the pension of former Hartford Mayor Eddie Perez because of Perez’s corruption while in office.

Any hardship Perez suffers is outweighed by his betrayal of the trust voters placed in him during his multiple terms as the city’s chief executive, Hartford Superior Court Judge Cesar A. Noble found.


The judge’s decision was handed down Tuesday. Perez, who works as a transportation coordinator for the Capitol Region Education Council, is believed to be contemplating another run for mayor. He has shown up at a variety of public events in recent months.

Noble’s ruling followed a one-day trial last fall when the state sought to prevent Perez from receiving a $27,945.12 annual pension for his time as mayor of Hartford. Perez sought to retain the pension, citing his inability to find work and his wife’s illness, but Noble rejected his plea, noting the severity of the former mayor’s breach of trust.

PAID POSTWhat Is This?
See the 6 cars that are nearly perfect
See the 6 cars that are nearly perfect
Car experts reveal which cars teeter on the edge of glory, many just one change away from making the leap from good to great. Click to see which models made the list.

SEE MORE Sponsored Content by  Cars.com
Eddie Perez ponders a political comeback in Hartford after a corruption scandal derailed his career
Perez’s “criminal conduct began in 2005, halfway through his tenure as mayor of the city," the judge wrote. “The severity of the crimes, the self dealing and disdain for the public good demonstrated by his conduct, as well as the high degree of public trust reposed in the defendant, outweigh any factors mitigating his crimes including any good work done for the city, the financial impact on the defendant and his wife or her illness.

“The injury inflicted by any misconduct is magnified when accompanied by a breach of trust and never more so than when done by an elected public official. In a representative democracy, the public’s vote is an act of trust and confidence that the public official will act in the public’s interest. Misconduct by an elected official results not only in distrust of the official but also a ‘loss of public confidence in the honesty and integrity of their elected officials.’ The defendant’s malfeasance while mayor thus places his action on the severe end of the continuum."

Perez resigned from city hall in June 2010, seven days after he was convicted by a jury of five felony corruption charges. The extortion and bribery charges arose from small, self-serving deals in which he was accused of taking $40,000 in kitchen and bathroom improvements from contractor Carlos Costa, who had a city contract to work on a Park Street improvement project, and Perez’s effort to have a businessman pay off former North End political power broker Abe Giles, whose support Perez sought, if the developer wanted his project to move forward.

Ex-Hartford Mayor Eddie Perez Pleads Guilty To Bribe Receiving, Attempted Larceny; Spared Prison
But his conviction was overturned by the state Appellate Court in 2013, and the Connecticut Supreme Court upheld the reversal in 2016. The state then moved to retry Perez, and the former mayor pleaded guilty last August to taking a bribe and attempted first-degree larceny by extortion. He was spared prison.

In reaching his decision, the judge considered several different public corruption cases in which the state attorney general’s office went to court to reduce or revoke the pensions of corrupt municipal or state officials. The judge was required to take into consideration a variety of factors, including the severity of the crime, the monetary loss, the degree of public trust placed in the official by virtue of the person’s position and if the crime was a part of a fraudulent scheme.

“The nature of this crime ... is not properly measured only in dollars and cents but rather in the injurious implications for the honest administration of government,” Noble wrote.

The scheme, the judge found, resulted in “the obstruction of attempts to remedy what was perceived to be defective and untimely work by USA Contractors on a public project. In short, the defendant was prepared to, and in fact did, endanger a public project in a distressed neighborhood for his personal benefit. The court also considers relevant that fact that the defendant lied to state investigators when asked if he had paid USA Contractors.”

The judge found that in the payoff attempt to Giles, Perez sought to coerce a businessman who was trying to invest in Hartford.

“It should not be necessary to remark that such behavior not only insults public integrity, but harms the public good,” the judge wrote.

Recently, Perez, who is 61, dropped a lawsuit against the city and said people are encouraging to run for mayor.

“I’m being Eddie Perez,” he said. “When I’m at a barbershop or a bodega or at Walmart, people give me advice ... I’m happy they have me on their minds and think I can continue to do good work, but I’m just listening.”
https://www.nbcconnecticut.com/news/...507150151.html
Quote:
Judge Revokes Pension for Former Hartford Mayor Eddie Perez: AP

Spoiler:
A Connecticut judge has revoked the pension of former Hartford Mayor Eddie Perez because of corruption convictions.

Judge Cesar Noble in Hartford issued a ruling Tuesday citing the severity of Perez's crimes and his "disdain for the public good."

Purported Mosque Shooter Hated Immigrants, Wanted to Stoke Fear
State law allows for the revocation or reduction of corrupt public officials' retirement benefits. The state attorney general's office sued Perez seeking to reduce or revoke his nearly $28,000 annual pension.

Home Improvements on Former Mayor Perez's HouseHome Improvements on Former Mayor Perez's House

Perez, a Democrat, was Hartford's first Hispanic mayor and served from 2001 until he resigned in 2010 amid the corruption charges. He pleaded guilty in 2017 to receiving a bribe and attempted larceny by extortion while in office. He received a suspended prison term.

His lawyer says he's disappointed with the ruling, but an appeal isn't planned.


https://www.nepr.net/post/state-judg...rd-mayor-perez
Quote:
State Judge Revokes Pension Of Convicted Former Hartford Mayor Perez

Spoiler:
A state judge has revoked the public pension of former Hartford Mayor Eddie Perez, a year and a half after Perez pleaded guilty to two corruption-related offenses stemming from his time in office.
Despite Perez’s history of service to the city, and despite the severity of an illness suffered by the former mayor’s wife, Judge Cesar Noble said nevertheless he was compelled to revoke the former mayor’s pension. He issued his decision earlier this week.

“The severity of the crimes, the self dealing and disdain for the public good demonstrated by his conduct, as well as the high degree of public trust reposed in the defendant, outweigh any factors mitigating his crimes,” Noble wrote, “including any good work done for the city, the financial impact on the defendant and his wife or her illness.”

Perez was first convicted in 2010 in two schemes. In one, he took deeply discounted work on his home from a city contractor; in another, he tried to extort a city developer. Those convictions were eventually overturned after a lengthy legal process, with a ruling from the Connecticut Supreme Court in 2016 that Perez’s two cases shouldn’t have been tried as one. But, in 2017, facing the prospect of two new trials, Perez pleaded guilty to two felony corruption charges.

The state then moved to revoke the former mayor’s nearly $28,000 annual pension, which led to a trial late last year. In court in November, state lawyers argued that Perez should have his pension reduced or revoked because of the severity of the crime and his abuse of public office. Meanwhile, lawyers for Perez argued that, even though Perez shouldn’t have used his political power for his personal gain, there was no economic loss to the city.

But, in deciding the pension case, Noble wasn’t swayed by Perez’s defense. In the case of the discounted home renovations, Perez eventually paid just over $20,000 for work estimated at nearly twice that. The work was done by a city contractor who was, around the same time, falling down on a city job on Park Street. But, when the city initiated a claim against the contractor, Perez intervened on his behalf and reversed course -- keeping him in business.

In his decision, Noble wrote that the former mayor “was prepared to, and in fact did, endanger a public project in a distressed neighborhood for his personal benefit.”

Noble also wrote that Perez didn’t help his case by lying to state investigators about whether he had paid for that work.

In the second scheme -- attempted larceny by extortion -- Noble said Perez admitted that he tried to coerce a city businessman to pay off an influential city politician.

“It should not be necessary to remark that such behavior not only insults public integrity but also harms the public good,” Noble wrote.

Perez is reportedly considering a challenge to current Mayor Luke Bronin. Immediate efforts to reach Perez’s attorney late Wednesday were unsuccessful.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #517  
Old 03-15-2019, 03:58 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

NEW HAVEN, CONNECTICUT

https://www.nhregister.com/news/arti...d-13689870.php
Quote:
New Haven to seek payback from worker suspected of embezzlement

Spoiler:
NEW HAVEN — The pension of the city employee suspected of embezzlement will be targeted as the city seeks payback for any missing funds.

A longtime employee the payroll division, who recently filed paperwork to collect his pension, is under investigation for allegedly siphoning off just under $100,000 since 2003.

Controller Daryl Jones said the city’s insurance policy will cover the missing funds to make the city whole, but Mayor Toni Harp said beyond that, New Haven will enlist the state attorney general’s office to reclaim as much of the loss as it can.

The state would do this under the pension revocation or reduction act applicable to state and municipal employees.

The regular meeting of the trustees of the City Employee Retirement Fund is Wednesday morning.

Harp said the city does not have the power to deny someone their pension benefits, but it can bring in the attorney general’s office to help to cover its losses.

“We will likely make the attorney general aware of it, but my understanding is that he is already paying some attention to this,” Harp said Thursday. “He can do it on his own accord, and we don’t necessarily have to request it, but we will once everything has gone through the process.”

That can take awhile.

The state statute reads “ ... if any public official or state or municipal employee is convicted of or pleads guilty or nolo contendere to any crime related to state or municipal office in state criminal or federal criminal court, the attorney general shall apply to the Superior Court for an order to revoke or reduce the pension of any kind to which such public official or state or municipal employee is otherwise entitled under the general statutes for service as a public official or state or municipal employee.”

The court, in making its determination, takes into consideration the severity of the crime; the amount of the loss; the degree of public trust reposed in the official.

If it agrees that the pension should be reduced, it may order that some or all of the reduced pension be paid to an innocent spouse, dependents and designated beneficiaries.

A warrant has not yet been issued for the employee in question.

The city was attempting to arrange an interview with him in what is called a Loudermill hearing, when he applied for his pension. A Loudermill hearing is required if the city is considering disciplining or firing a worker.

The mayor said the city is prohibited from denying a worker his or her pension benefit.

The city has already adjusted the employee’s earnings to deduct the suspected ill gotten gains, according to city spokesman Laurence Grotheer.

The employee has been on sick leave since late summer.

Harp, in an earlier statement, said new internal controls and auditing procedures were put in place after another worker was charged with misusing a city credit card to cover some $13,000 in expenses.

Bianca Bowles was charged with second-degree larceny, illegal use of a credit card and first-degree identity theft. She has filed a wrongful termination suit against the city.

Some of the new procedures include verification steps aimed at “all the city’s major functions, covering vendors and accounts payable, benefits and human resources, accounting and internal sources of revenue, and pension and payroll payments,” Harp said in a statement.

There are now quarterly reports to ensure no unauthorized, supplemental vendor, payroll, or pension checks are issued, the mayor said in the statement. There are also independent Information Technology reports that are reconciled with the city’s internal audit division.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #518  
Old 03-15-2019, 03:59 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

CALIFORNIA

https://www.kusi.com/carl-demaio-on-...rm-initiative/
Quote:
Carl DeMaio on San Diego’s Pension Reform Initiative

Spoiler:
SAN DIEGO (KUSI) – In 2012, San Diego voters approved a Citizens’ Initiative called Prop B to cap pension payouts for existing employees and close the expensive city employee pension program and instead offer 401k accounts to new hires.

In March the 4th District Court and at the U.S. Supreme Court are looking to possibly throw out the initiative.

“We will vigorously fight any effort to overturn this voter-approved pension reform measure because doing so would not only bankrupt San Diego but it would also strip Californians of their cherished rights to use Citizens’ Initiatives to impose accountability on their government,” said Carl DeMaio, author of the San Diego Pension Reform Initiative.

on March 14th the 4th District Court in San Diego will consider what remedy should be imposed on the City of San Diego if the Mayor’s endorsement constituted a violation of “meet and confer.”

On Monday, March 18, the US Supreme Court will decide whether to rule on a separate case that would overrule California’s determination that a sitting Mayor cannot exercise his First Amendment rights of free speech to publicly endorse ballot measures that may impact wages of government union workers.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #519  
Old 03-15-2019, 04:00 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

ILLINOIS
https://www.ilnews.org/news/state_po...40ebec207.html
Quote:
Illinois lawmakers differ on how to ‘fix’ Tier II pensions

Spoiler:
State lawmakers are hearing concerns over Tier II pensions for public employees. One said a fix will likely cost taxpayers more. Another said the only answer is bankruptcy.

State Rep. Robert Martwick, D-Chicago, held a hearing in Springfield to get testimony from various pension boards for police, fire, local government employees and teachers.

The issues, he said, could lead the state’s Tier II pensions to be found by the federal government to be insufficient for retirees. He equated it to a "landmine."

“If that happens, it could create an instant and massive debt to the state of Illinois,” Martwick said.

Martwick couldn’t say how much that debt would be, but whatever it is would be tacked on to the state’s $135 billion unfunded pension liability. That doesn’t include the increased cost of taxpayer subsidized public employee retiree health care that’s estimated in the tens of billions of dollars.

Lawmakers are considering what Martwick called possible “fixes” to alleviate concerns.

“We don’t know this for sure yet, but it would seem as though there is going to be a cost associated with this fix,” Martwick said. “The only question is, is this a cost we take on now, is this a cost we take on later? How much will it be in both instances and how do we do it?”

State Rep. Steven Reick, R-Woodstock, said he see only one fix.

“I don’t see anyway around this other than structured federal bankruptcy for the state pension plans,” Reick said. “I don’t want to do that. But I think that the need exists for the rest of the people of the state of Illinois to have a little bit of an end to this. We can’t go to 2045 and pay $20 billion into a pension plan and still be underfunded at that time.”

Reick said this issue isn’t only about state pensions, it’s about local police and fire pensions, too.

“All these pension plans are on the verge of collapse and there’s no unicorn out there,” he said. “Show me the tree where money grows and I’ll go ahead and go out and pick it, but it doesn’t.”

Rieck warned against raising taxes to cover the bill. He said: “Government has the power to tax and the power to tax is the power to destroy.”

More hearings on the issue are expected in the weeks ahead.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #520  
Old 03-15-2019, 04:01 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 86,641
Blog Entries: 6
Default

NEW YORK CITY

https://www.ai-cio.com/news/nyc-pens...m-600-million/

Quote:
NYC Pension Boosts Private Equity Program by $600 Million
Increase raises total assets in emerging managers initiative to $8.8 billion.
Spoiler:
The $193.7 billion New York City Retirement System has expanded its in-house emerging managers program in private equity by $600 million, raising the total assets dedicated to the program to more than $1.5 billion.

The expansion also increases the total assets committed to small and emerging investment managers for all asset classes to $8.8 billion, which is a 57% increase over the past five years. The private equity emerging managers program is one of a series of NYCRS initiatives aimed at increasing opportunities for smaller managers, including minority- and women-owned management firms.

The emerging manager program seeks managers for a range of asset classes, such as public equities, fixed income, real estate, infrastructure, hedge funds, alternative credit, and private equity. The program is intended to cultivate the growth and development of successful managers who typically do not have access to large institutional investors.

“It shouldn’t matter who you know or what your background is, if you can deliver for New York City retirees, you deserve a shot—and that’s what this program gives you,” NYC Comptroller Scott Stringer said in a release. “With direct investments to outstanding minority- and women-owned firms and other emerging funds, we’re diversifying our portfolio with a better balance of managers and strategies.”

According to the minimum criteria of the emerging manager program, managers must be “significantly experienced” investors who can generate competitive risk-adjusted returns and manage funds that may have shorter track records than more established managers. Other criteria include having institutional-quality operations with established front- and back-office systems, and risk management including reputable administrators, auditors, and an independent third-party pricing source where appropriate.

Under the private equity emerging managers program, the system is seeking to invest in experienced and proven fund managers with a differentiated investment strategy that demonstrates an ability to generate superior risk-adjusted returns.

“We can’t let industry roadblocks dictate our strategies,” said Stringer. “We have to build pipelines for talent and for stronger investments.”


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 08:22 PM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.16603 seconds with 9 queries