Posted April 21, 2017 9:46 am by Comments (4)

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Comment: Solid advice from Terry Savage.

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4 Comments on "Don’t count on that government pension – Opinion – Chicago Tribune"

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Paul

It seems more and more of the mainstream media are running more pieces about public pensions. Seems to signal that a widespread collapse is on the horizon. Another good article that sheds light on the problem. Now the next question will there be the political will to prosecute those responsible.

j.a.herzrent
Most arrangements are structured so that public officials end up making the final decision. For example, the actuary suggests a range of assumptions and the governing body selects the assumption to be used. (Example, how much return will be realized on our pension fund?) The public officials generally have statutory immunity from prosecution or civil liability. The actuaries have something in their engagement contract relieving them or indemnifying them from responsibility. Furthermore, the damage caused to taxpayers by years of malfeasance and cronyism is beyond the ability of any culpable party to pay out of his or her own pocket.… Read more »
Paul

We must prosecute otherwise there is no end to the madness. I’m pretty sure the government can go after them (the administrators of these plans) under the directors and officers insurance policies. Also the honest service s fraud, RICO statutes, etc. The system is on the verge of collapsing and most of the retirees don’t even know it’s coming.

j.a.herzrent
I have researched this extensively and invite you to do the same. As a starting point, have a look at Bay City Police and Fire Retirees v. Bay City Police and Fire Retirement System Board Michigan Court of Appeals – Decided: August 24, 2006 (2006 Mich. App. Lexis 2604). The Michigan Court of Appeals held that the Retirement Board is protected by governmental immunity against breach of fiduciary duty claims related to the Board’s investment of plan assets. This was a case involving civil liability for imprudent investment of 20% of plan assets in a security that proved to be… Read more »
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