Thursday, June 03, 2010

uber wonkery you can't ignore

Don't say I have not mentioned in passing that discount rate issues could have a big impact on our public pension problems...  but I missed this story ahead of the media pack that the Trib had on Sunday. 

Public pension funds could be in for big shock

This could be huge news all around, not just the city but the county and all other local municipalities.

That headline would be an understatement for the record.  Let's put it this way.  If what the article says is half true and the actuarial accounting for public pensions is altered then all sorts of things will happen.  The estimated billion dollar pension liability the city is believed to have right now will be recalculated to be.. I dunno...  a very quick SWAG, but I say +50% and possibly more.  If the total liability is more like $1.5 billion, than even the most successful parking asset sale/lease will not get us close to the 50% funding ratio that is needed to keep from an imposed state takeover...  and no matter who runs the pension system, the recalculated pension contributions are going to be proportionally higher as well.


Blogger Grimace said...

That's why Pittsburgh is the most livable city! Everyone is on the dole!

Thursday, June 03, 2010 6:33:00 PM  

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