Wisconsin Pesky Facts--Pension System: Sound, Well-Managed

[marmar]

from the Working Life blog:




Wisconsin Pesky Facts--Pension System: Sound, Well-Managed

by Jonathan Tasini
Thursday 24 of March, 2011


I don't write this to convince the people who are intentionally lying or have some ideological end-game here (as in, destroy unions and the middle class). I write this for those people who are still living on the planet Earth of reality. So, here it is: Wisconsin has a great, financially-sound public pension system. There is no need to change it or "reform" it.

The facts, from the Center on Wisconsin Strategy and the Center for Economic and Policy Research, show that because contributions were consistently made at the full funding level:

...while the fund’s holdings dipped during 2008 due to stock market losses, it remains one of the most solid in the country and has enough funds to cover the promises made not only to current retirees but to those in the future. A report by the nonpartisan Pew Center for the States concluded that Wisconsin is a “national leader in managing its long-term liabilities for both pension and retiree health care.”

And actually it is way above the standard set by the GAO:

...since 2006, the WRS has been able to meet no less than 99.6 percent of its pension obligations directly out of its pool of assets. By comparison, the U.S. Government Accountability Office recommends that at least 80 percent of liabilities be financeable through assets.

And, surprise:

In fact, the WRS would currently be overfunded if the value of its assets, which are invested partly in stocks, had not plunged as a result of the market collapse in 2008-2009.

...........(more)

The complete piece is at: http://www.workinglife.org/blogs/view_post.php?content_id=15136

[Atman]

1. Perhaps it needs to be looked at differently...

To Walker, the Kochs and your average GOP crook, it's a big huge pile of money just sitting there, doing what it was designed to do; earning money and paying the obligations to pensioners. To these crooks, it's just too tempting. The kid is in the candy store, and he's trying to figure out how to get hits mitts on all that sweet goodness.

[charmay]

2. Exactly!

Thompson tried to steal it years ago and it had to be paid back. If Prosser is elected, I'm sure that Walker will feel that he will get away with it this time.

[mopinko]

3. +1

[Historic NY]

4. Same thing here in NY , gov's tried to steal it & failed....now NJ they stole it like they owned it.

[ProgressiveProfessor]

6. The California governors used to do that too until stopped by an initiative

That included R & Ds, including Brown. Now CalPERS and CaSTRS are underfunded...go figure.

[ProgressiveProfessor]

5. What is required is an independent actuarial review

The pros in pensions etc not some NGO opinion cited in a blog. That gives it some standing. Even the annual audit which is supposed to be independent would be useful.

CalPERS and CalSTRs are underfunded at this time and it is starting to worry those of us who receive income from them what will happen.