Wednesday, June 30, 2010

It's the end of June. Do you know where your pension is?

It's the end of June which means it's the end of the quarter and folks will soon be looking at the latest returns on their mutual funds.   Same goes for the city's pension system which will have new numbers as well.   Over the last 3 months nobody is going to have done well.   DJIA is down ~9% since the end of March.

After the first quarter's pension fund performance there was this important news that connected the dots between the pension fund's recent performance and the upcoming parking asset monetization.  Basically the worse the state of the pension fund, the greater $$$ needs to come from the parking assets for it to be worth doing at all.  As the story pointed out, already from March data it was obvious that the city needs more than it was originally planning on.

What will the iteration of that news story say when we get data from the pension funds' 2nd quarter performance?  DJIA actually went up a few percentage points over the course of the 1st quarter.  That does not bode well for how the pension funds did in the  2nd quarter when the DJIA actually plummeted. Normally the city wouldn't make the pension fund data available for roughly 6-7 weeks after the end of the quarter ... which would be later in August when the pension board meets.  I have a feeling that since the city for a limited time has a vested interest in making known the dire state of the pension system, so as to facilitate less resistance to the parking asset monetization, it may give us the bad news a lot sooner. 

2 Comments:

Blogger Bram Reichbaum said...

"I have a feeling that since the city for a limited time has a vested interest in making known the dire state of the pension system, so as to facilitate less resistance to the parking asset monetization, it may give us the bad news a lot sooner."

Yes. That is, unless the DIJA news is so bad that it puts 50% pension funding entirely outside the envelope of what can be garnered in a lease agreement. Then the news will might even later than usual.

Thursday, July 01, 2010 5:32:00 PM  
Blogger Bram Reichbaum said...

"Then the news will might even later than usual." You know what I mean.

Thursday, July 01, 2010 5:33:00 PM  

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