Wayne County Pensions Underwater; Union Sues To Preserve ‘13th Check’
‘A ridiculous practice’; pension fund is 43 percent short of amount needed to pay regular benefits
"...The union had sued to retain the benefit, which the county halted in 2015.
The county began paying the “13th check,” a pension boost to retirees, back in the in the 1980s, in the name of compensating them for inflation. Pensioners ordinarily get one check a month, or 12 checks a year.
The 13th check is a bonus.
...Michigan’s 83 counties had promised to pay out $2.55 billion more in pension benefits than they had set aside for retirees as Aug. 2016.
Only two counties didn’t have pension debt in 2016: Bay and Kalamazoo. Further, as of 2016, the average city in Michigan only had the assets necessary to cover 67 percent of promised pension benefits — with an underfunding total of more than $5.4 billion."
Read all!
The 13th check is a bonus.
...Michigan’s 83 counties had promised to pay out $2.55 billion more in pension benefits than they had set aside for retirees as Aug. 2016.
Only two counties didn’t have pension debt in 2016: Bay and Kalamazoo. Further, as of 2016, the average city in Michigan only had the assets necessary to cover 67 percent of promised pension benefits — with an underfunding total of more than $5.4 billion."
Read all!
No comments:
Post a Comment