Wednesday, May 11, 2011

Where Did the $603M Go?

Last year as part of the the city's pension budget of $7.481B, there was a contigency reserve of $603M. It was supposed to cover modifications to actuarial assumptions that were to be enacted into law. It now appears that $603M is not going to be paid to the pension funds. The city's pension cost for FY-2011 is now only $6.883B. I suspect the legislation was delayed. So where did that money go? Did city just save it or did they use it somewhere else?

The pension contigency for FY-2012 is $951M. Is it really needed? Will the legislation be again delayed? This whole issue of public pensions has drifted into Never Never Land. The truth has vanished and all we have left is delusions.

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