County Pension Mess Still Going Strong
Here’s where we’re at: the pension obligation bonds have not yet been issued, but the pension board is preparing to invest in risky stock futures in order to salvage an 8% return on investment after issuing bonds that pay 6% interest (these numbers are completely speculative and in no way accurate). If you’re upset that no one from the county has contacted you to let you in on this sweet investment opportunity, it’s because it doesn’t exist. Scott Walker’s plan for the county pension system — which sounds nothing like his plan for the state’s budget — is truly one of hope.
The minor mess on top of this larger clusterfuck is the county counsel’s lack of communication with the pension board. As of the January 21st pension board meeting, the board felt the County Counsel was “shortcutting” the pension board. 5% of the $400 million in pension obligation bonds will be invested in stock futures each week, with the hope that the return will more than offset the cost of borrowing the money in the first place. This is all in an attempt to avoid having to fully fund the county’s pension system by raising taxes and/or reducing pension benefits.