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Kentucky Receives More Terrible Pension Press

November 8th, 2012 · 3 Comments

Like this from the Miami Herald:

The New York state teachers’ fund had assets fully equal to liabilities, whereas the New York City teachers’ fund had assets equal to 63 percent of its projected costs. Illinois, Kentucky and Pennsylvania face enormous gaps, while Delaware, Florida, North Carolina and Tennessee have managed their pension plans relatively well.

-SNIP-

The New York state teachers’ fund had assets fully equal to liabilities, whereas the New York City teachers’ fund had assets equal to 63 percent of its projected costs. Illinois, Kentucky and Pennsylvania face enormous gaps, while Delaware, Florida, North Carolina and Tennessee have managed their pension plans relatively well.

-SNIP-

The states with huge funding gaps have “behaved badly,” Munnell concludes. “They have either not made the required contributions or used inaccurate assumptions so that their contribution requirements are not meaningful.” She added, “Fiscal discipline simply appeared not to be part of the state’s culture.”

In pensions, as in life, what goes around comes around. In states that have behaved well in the past — such as Delaware — the burden of pension plans will increase in future years only modestly if at all. In contrast, a state such as Illinois, which has perhaps the worst record of avoiding necessary funding even while expanding benefits, will have to increase its pension contributions sharply if it is to meet its obligations.

Click here to read the entire thing.

Now you know why Kentucky can’t have nice things.

Tags: Corruption · Wasted Money

3 responses so far ↓

  • 1 E // Nov 8, 2012 at 1:10 pm

    Not to worry…our electeds will simply borrow the money to fill the pensions…and make sure the due date for the debt doesn’t arrive until they’re all dead from old age.

  • 2 Chris Tobe // Nov 8, 2012 at 1:46 pm

    This is written by Peter Orzag who was the OMB head for Obama. This is not the typical Republican critic railing against public unions.
    Orzag supports public DB pensions overall, he is just pointing out the ones in places like Illinois and Kentucky which have been mismanaged and manipulated

  • 3 FreeManNKy // Nov 8, 2012 at 2:02 pm

    People of Kentucky do not care about the pension issue. Why? They don’t grasp how it affects them.