Tweet
http://primebuzz.kcstar.com/?q=node/20045
Kansas employee pension fund "bankrupt" says new report from KU
The recession hasn't been kind to Kansas Public Employees Retirement System.
The plunging stock market doubled the fund's unfunded liabilities, from $5 billion to $10 billion. That's the amount the pension system is obligated to pay future state retirees but can't.
A new report from the University of Kansas' Center for Applied Economics looks at KPERS numbers and concludes that "KPERS is bankrupt under current operating assumptions."
The report says that public employers (school districts, state and local governments, police departments, etc) will need to up their contributions to save the system, at a time when those same governments are struggling to stay in the black.
KPERS executive director Glenn Deck agrees with much of the report, saying it's no secret the pension system is struggling and that lawmakers will have to do something soon to fix the problem.
But he doesn't care for the "b" word.
"We certainly disagree with the assertion that we're bankrupt," he said. "Our current benefits are safe. We’ve got more than $10 billion in assets and we’re paying out benefits."
He said his staff is working with lawmakers right now to put together a list of options to right the KPERS ship. He expects it to be a big topic when the Legislature returns to Topeka in January.
Two weeks ago Gov. Mark Parkinson said he's examining several options to address the shortfall - including possibly changing pension benefits for new public workers.
"The economic downturn has caused a long-term funding problem," Deck said. "There's going to have to be some solutions."
Read KPERS memo on the shortfall here.
Submitted by David Klepper on September 23, 2009 - 1:51pm.
Kansas | login or register to post comments | 220 reads
Banks on Friday afternoon at 5 PM have assets and pay their bills too Deck. All the tellers smile nice and you still take a lollipop. But behind the scenes, a bus full of a Sheila Bair federales are primed and rehearsed to swarm the building like the opening scene from Inside Man.
The Pension Tsunami continues to build offshore, there are 1000 stories like this that don't make the front pages.
A great website here continues to cover that sub-story if you don't know about it.
http://www.pensiontsunami.com/
I sure the PBGC is going to be re-worked somehow to backstop failing states instead of just failed private companies.
People who work hard for 20-30 years and then live another 50-60 years expecting 50-90% of their working years pay is a formula that is impossible to maintain and should be a criminal offense to even position in front of public employees and taxpayers.
It's in the same vein as Bernie Madoff. But don't use the P word...
-Pangea
Kansas employee pension fund "bankrupt" says new report from KU
The recession hasn't been kind to Kansas Public Employees Retirement System.
The plunging stock market doubled the fund's unfunded liabilities, from $5 billion to $10 billion. That's the amount the pension system is obligated to pay future state retirees but can't.
A new report from the University of Kansas' Center for Applied Economics looks at KPERS numbers and concludes that "KPERS is bankrupt under current operating assumptions."
The report says that public employers (school districts, state and local governments, police departments, etc) will need to up their contributions to save the system, at a time when those same governments are struggling to stay in the black.
KPERS executive director Glenn Deck agrees with much of the report, saying it's no secret the pension system is struggling and that lawmakers will have to do something soon to fix the problem.
But he doesn't care for the "b" word.
"We certainly disagree with the assertion that we're bankrupt," he said. "Our current benefits are safe. We’ve got more than $10 billion in assets and we’re paying out benefits."
He said his staff is working with lawmakers right now to put together a list of options to right the KPERS ship. He expects it to be a big topic when the Legislature returns to Topeka in January.
Two weeks ago Gov. Mark Parkinson said he's examining several options to address the shortfall - including possibly changing pension benefits for new public workers.
"The economic downturn has caused a long-term funding problem," Deck said. "There's going to have to be some solutions."
Read KPERS memo on the shortfall here.
Submitted by David Klepper on September 23, 2009 - 1:51pm.
Kansas | login or register to post comments | 220 reads
The Pension Tsunami continues to build offshore, there are 1000 stories like this that don't make the front pages.
A great website here continues to cover that sub-story if you don't know about it.
http://www.pensiontsunami.com/
I sure the PBGC is going to be re-worked somehow to backstop failing states instead of just failed private companies.
People who work hard for 20-30 years and then live another 50-60 years expecting 50-90% of their working years pay is a formula that is impossible to maintain and should be a criminal offense to even position in front of public employees and taxpayers.
It's in the same vein as Bernie Madoff. But don't use the P word...
-Pangea
Comment