Pew report: Wisconsin state workers' pensions are well-funded

[highplainsdem]

Source: Milwaukee Journal Sentinel

Pew report: Wisconsin state workers' pensions are well-funded
By Kathleen Gallagher of the Journal Sentinel
April 26, 2011 8:31 p.m. |


Wisconsin emerged as one of the better-performing states in a gloomy report released Tuesday that estimated the gap between states' promises and the amount of money they've set aside for employees' retirement and other benefits has grown to at least $1.26 trillion.

Wisconsin's public employee pension plan was 100% funded compared with an average of 78%, according to the report by the Pew Center on the States.

Wisconsin was among just seven states that have funded at least a quarter of health care and other benefits for retirees, said the report, called "The Widening Gap: The Great Recession's Impact on State Pension and Retiree Health Care Costs."

Wisconsin has funded 28% of those costs, the report says.

-snip-

[rurallib]

1. give Walker a couple years and it won't be.

[getting old in mke]

2. Fortunately, he'll only get one...

God willing and a good south wind...

[Iliyah]

3. Why does

he hate WI?

[highplainsdem]

6. ALEC has new model legislation that will let states raid those pension funds.

Links to topics about this legislation, which would slash the levek of accrued state pensions to private-sector levels:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x854864

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x941300


There are also links to those topics in the long compilation topic on the American Legislative Exchange Council (ALEC), in replies 204 and 246 there.

[doc03]

4. Health care costs funded at 28% doesn't sound well

funded to me.

[Star]

7. Keep one thing in mind

Pension funds never have to have enough money to fund all future retirements because current employees continue to pay into the fund. Everything depends on how many employees are expected to retire within the next 10 years or so. That's the amount that the fund needs to have on hand.

The actuarial charts show how much money must be in the fund at any one time in order to cover current and near-future needs. Long terms needs for those employees who won't be retiring for 10, 20, or even 30 years will be met as those younger employees, who won't be able to collect retirement pay for many years, pay into the fund.

Raiding the fund of any "surplus" is a practice that will destroy the fund by making it unable to meet short-term needs.

[ProgressiveProfessor]

5. I would not be so giddy about this....

PAge 9 of the Pew report is enlightening about where they got their numbers. "Pew adopted each state’s actuarial assumptions." to me is a key concern. CALPers statements at times have been overly optimistic, and in light of a potential double dip coming, I would be concerned about the overall correctness of the data used.