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  #51  
Old 07-19-2013, 06:10 PM
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on the county judge

http://www.detroitnews.com/article/2...huette-appeals

Quote:
Lansing — Ruling the governor and Detroit’s emergency manager violated the state constitution, an Ingham County Circuit judge ordered Friday that Detroit’s federal bankruptcy filing be withdrawn.

“It’s absolutely needed,” said Judge Rosemary Aquilina, observing she hopes Gov. Rick Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.”

The judge said state law guards against retirement benefits being “diminished” but there will be no such protection in federal bankruptcy court.

State-level legal skirmishing over the Chapter 9 bankruptcy effort by Snyder and Detroit Emergency Manager Kevyn Orr now will quickly move to the Michigan Court of Appeals.


.....
Prior to her ruling on Friday, the judge criticized the Snyder administration and Attorney General’s Office over its hasty move to outflank pension board attorneys.

“It’s cheating, sir, and it’s cheating good people who work,” the judge told assistant Attorney General Brian Devlin. “It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”

Aquilina said she would make sure President Obama got a copy of her order.

“I know he’s watching this,” she said, predicting the president ultimately will have to do something to make sure existing city workers’ pension agreements are honored.
yeah, I don't think a federal bankruptcy court is going to give a rat's ass about that order.


The Obama thing is hilarious. "PLEEEEEEEEEZ - bail us out!" I don't think he can or will do anything about it.

Okay, he'll make a speech, but that's not really doing anything, is it.
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  #52  
Old 07-19-2013, 06:13 PM
This is my Alt This is my Alt is offline
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Judges are dumb
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  #53  
Old 07-19-2013, 06:18 PM
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Oh jeez, I just noticed this part of the quote from the judge (I had only noticed the part about sending the order to Obama)

Quote:
“It’s also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy.”
BWA HA HA

oh lord
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  #54  
Old 07-19-2013, 06:32 PM
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The 2011 actuarial reports for the GRS and Police/fire systems show the normal issues:

high interest rate (8%), high assumed CPI (4%), net return of 4%.
Odd mix in the assets reported, including positive and negative asset positions in different fund groups. I would like an explanation of those.

Assumed future level amortization as percent of pay (not even paying interest on the unfunded liability)

I would like to see the Milliman report as well.
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  #55  
Old 07-19-2013, 06:41 PM
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Judges are dumb
She's got to protect her own pension.
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  #56  
Old 07-19-2013, 08:10 PM
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She's got to protect her own pension.
I'd expect her pension will be paid by the state, not the city.
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  #57  
Old 07-20-2013, 01:10 PM
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Is abandoning the city and plowing it over still an option?

No city, no problem. To paraphrase a certain someone.
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  #58  
Old 07-21-2013, 11:40 AM
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Quote:
Originally Posted by Duffer View Post
The 2011 actuarial reports for the GRS and Police/fire systems show the normal issues:

high interest rate (8%), high assumed CPI (4%), net return of 4%.
Odd mix in the assets reported, including positive and negative asset positions in different fund groups. I would like an explanation of those.

Assumed future level amortization as percent of pay (not even paying interest on the unfunded liability)

I would like to see the Milliman report as well.
I hope they have limited liability written into their contract...
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  #59  
Old 07-21-2013, 12:36 PM
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Detroit Gap Reveals Industry Dispute on Pension Math

Until mid-June, there was one ray of hope in Detroit’s gathering storm: For all the city’s problems, its pension fund was in pretty good shape. If the city went under, its thousands of retired clerks, police officers, bus drivers and other workers would still be safe.

Then came bad news. Seemingly out of nowhere, a $3.5 billion hole appeared in Detroit’s pension system, courtesy of calculations by a firm hired by the city’s emergency manager.

snip ...

The problem has nothing to do with the usual padding and pay-to-play scandals that can plague pension funds. Rather, it is the possibility that a fundamental error has for decades been ingrained into actuarial standards of practice so that certain calculations are always done incorrectly. Over time, this mistake, if that is what it is, has worked its way into generally accepted accounting principles, been overlooked by outside auditors and even affected state and municipal credit ratings, although the ratings firms have lately been trying to correct for it.

Since the 1990s, the error has been making pensions look cheaper than they truly are, so if a city really has gone beyond its means, no one can see it.

“When the taxpayers find out, they’re going to be absolutely furious,” said Jeremy Gold, an actuary and economist who for years has called on his profession to correct what he calls “the biases embedded in present actuarial principles.” In 2000, well before the current flurry of pension-related municipal bankruptcies, he wrote his doctoral dissertation on how and why conventional pension calculations run afoul of modern economic principles.
There are a number of links in the original article that are worth following.

http://dealbook.nytimes.com/2013/07/...mid=tw-nytimes
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  #60  
Old 07-21-2013, 04:25 PM
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Quote:
Originally Posted by Abnormal View Post
There are a number of links in the original article that are worth following.

http://dealbook.nytimes.com/2013/07/...mid=tw-nytimes
I see someone else made a thread on it

http://www.actuarialoutpost.com/actu...d.php?t=264054

why it's in NAT--- no clue
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