In the Wake of Detroit: Public Pension Liabilities

Pensions have made national headlines in recent months, notably as part of the City of Detroit’s bankruptcy proceeding. In that case, pension liabilities were cited both as a cause of the City’s fiscal demise, and a factor in bankruptcy negotiations. In this session, panelists will discuss the Detroit case, and strategies that have been successfully […]

State Policy Changes Boost Teacher Pension Costs

According to a budget analysis prepared by the Department of Legislative Services, “local governments should continue to plan for a higher-than-forecast normal cost rate in fiscal 2017.”  This increase in normal costs is due to a change in demographic assumptions used to calculate pension liabilities. It is estimated that local school board contributions will increase […]

Teacher Pension Liabilities Stay With State Under New GASB Rules

The Executive Director of the State Retirement Agency recently confirmed that county governments do not need to report the state teacher pension fund’s unfunded liabilities, despite the teacher pension shift.  As he described in a hearing before the Senate Budget & Taxation Committee, the state pension fund’s unfunded liabilities will not be reflected on county […]

Governor’s Budget Repeats Cut in Pension Funding

The proposed FY 2015 budget has stirred controversy by permanently dropping the amount of pension savings to be reinvested into the system to advance it toward an adequate funding status. This $100 million change per year, part of the plan to address the general fund’s structural deficit, may have direct cost consequences for counties that […]