It’s a shame that incomes and property values have fallen so much that we can’t meet our promises to retirees. Add the demographic shift, and the situation stinks!
On a local level, Flint City Council recently rolled the defined contribution plan into the defined benefit plan. The argument from Council was this action would save the General Fund $4m this year because the defined benefit plan was dangerously underfunded. All this was on the third add-on resolution, i.e. a resolution not on the official agenda, at the 11/8/2010 meeting.
What I don’t know is whether the city simply pooled the money together in an accounting arrangement or whether the city functionally eliminated the defined contribution plan. Does anyone know more of the details?
Wednesday, January 5, 2011
Flint and Public Pensions
A reader has a question related to the pension issues facing Flint and other cities and states across the country. Anyone able to fill us in on the details?