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Michael2012, I deal with facts, not with "reasons to believe"

Now you sound like the administration where before a packed crowd of city employees during the budget process they quoted pension returns over the first 3 months of this year at over 12 percent. The employees gave them a standing ovation. I though it was pretty sad and outragious that the mayor and his menions would resort to such a manipulative tactic to decive the employees. They bought it, lock, stock and barrel.

And you don't think the mayor has been trying to hide the problem? The only reason it is getting more difficult for him is that it has finally become a major financial problem across the country. When the city council passed a resolution to bring in actuarial experts to study all these plans the mayor vetoed it. Why would he do that? Maybe to hide the real truth?

Now for the facts on city pension returns. Keep in mind current actuarial pension projections assume a 7.5% expected rate of return. When that doesn't happen unfunded liabilities increased and taxpayer and employee contributions increase. Curently taxpayer pay more than 25% of some public safety employee salary into the pension plan. 25 percent! That's unsustainable. In private industry you would be lucky to get a 5% match on your 401k. It's going to get worse.

Pension Plan Investment Performance Summary as of 12/31/2011 taken from official city documents

Police/Fire I 1 year (0.0%) 3 years (12.0%) 5 years (2.6% ) 7 years (4.5%) 10 years (5.3%) Since inception (5.3%)

Police II 1 year (0.1%) 3 years (12.0%) 5 years (2.6%) 7 years (4.6%) 10 years (5.7%) Since inception (5.7%)

Fire II 1 year (-0.5%) 3 years (12.2%) 5 years (2.7%) 7 years (4.6%) 10 years (N/A) Since inception (6.0%)

Municipal 1 year (-0.4%) 3 years (12.0%) 5 years (2.5%) 7 years (4.5%) 10 years (5.8%) Since incepttion (5.8%)

So to recap - Warwick hasn't received a 7.5% return on any plan in over 15 years. Do some reasearch on what many experts are forecasting as the new norm in America regarding the stock market and pension returns. It's not reflective of a 7.5% average.

From: City’s ‘critical’ pension plan to get outside review

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