Comments on: Detroit takes aim at its pensioners http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Aleen Spiliakos http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-55406 Sat, 18 Oct 2014 11:43:53 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-55406 Kan niet geloven dat je het hebt gezet zo goed dat zelfs een newbie zoals ik het kan begrijpen. veel dank

]]>
By: Wilbur Demosthenes http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-52273 Tue, 23 Sep 2014 00:44:17 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-52273 Il a à voir avec le théorème central limite. Je ne peux pas vraiment trouver un bon exemple, mais vous pouvez l’utiliser pour déterminer quand il est logique d’utiliser des statistiques sur un ensemble de variables (groupe de personnes) et quand vous devez les traiter individuellement.

]]>
By: willieloman http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47466 Tue, 25 Jun 2013 16:27:48 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47466 Total chaos in Detroit. Obama is taking the nation down the very same path. And nobody seems to care. The art collection should be sold to help satisfy all claims.

]]>
By: realist50 http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47407 Thu, 20 Jun 2013 06:01:09 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47407 Applying to public pensions something similar to the ERISA rules that govern funding of private defined benefit plans – and the PBGC premiums and backstop that go along with that – would address a lot of TFF and RB6’s concerns. That system is far from perfect, but it would prevent the egregious underfunding of pension plans that we’ve seen in states like Illinois.

The problem at this point is that some plans are so badly underfunded that the transition period to full funding would need to be over a period of decades. There’s also the risk that the whole thing turns into a federally funded bailout of underfunded state and local pension plans if the PBGC doesn’t charge high enough premiums. That said, stricter funding rules could be applied even in the absence of PBGC insurance.

]]>
By: Nurgle http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47405 Thu, 20 Jun 2013 02:11:39 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47405 @rb6, A very sensible suggestion that has application beyond Detroit’s case at hand – enforcing chronological primacy of obligations. Where was/is diligent oversight prior to engendering debt that obviously conflicts with prior obligations? A pension is an unrealized portion of an overall compensation package, and is calculated as such by potential employees when assessing the opportunity costs of various options. To alter that contract after the fact is certainly unethical, and should be illegal unless explicitly described to a potential employee beforehand.

]]>
By: changeling http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47401 Wed, 19 Jun 2013 23:53:46 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47401 I’d like to take a step or two back from the current conversation to make a general observation. Detroit once proudly and rightfully represented the pinnacle of American industrial capitalism. Now it is the rotting corpse of a failed American dream. We have let financial capitalism (which produces nothing but debt) suck the lifeblood out of our productive, entrepreneurial, industrial sector. As long as we bail out banks while letting manufacturing starve, we can expect more Detroits.

]]>
By: rb6 http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47398 Wed, 19 Jun 2013 21:53:37 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47398 UTC, my point is that the situation will be more stable and sustainable if everyone knows that whatever is agreed to has to be funded. It will make it harder for municipalities to push hard negotiation off by just agreeing to benefits in the future, which is basically the real source of the current problem. And if the municipality will only agree to lower benefits, it will still be more advantageous to workers because they will not have to worry about the rug being pulled out in the future because promised benefits were only illusory.

It’s almost too late for any solution, truth be told, but if you wanted to do something about it, funding requirements (already in place for private pensions) would be the way to do it.

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47395 Wed, 19 Jun 2013 17:28:50 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47395 @rb6, you are assuming that anybody cares whether or not retired government workers receive their pensions. Survey 100 Americans and most will answer, “Take it away from those lazy bums.”

That’s a very dangerous situation for somebody paying 11% of their income into a pension scheme. Sooner or later, a Tea Partier will find a way to take that money away, and will feel self-justified in the process. Rule of Law isn’t completely dead, but it has been severely eroded in the last decade. And public pensions will never be politically popular, no matter what the terms.

]]>
By: rb6 http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47394 Wed, 19 Jun 2013 15:42:33 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47394 One thing that has occurred to me is that the federal government could prohibit municipalities from participating in the bond market on a tax preferred basis unless its pension plans are actuarially sound. The point would be to establish a shorter time frame around the potential consequences of underfunding, so that they (1) don’t become so dire that there is basically nothing anyone can do about it and (2) they cannot be pushed so far out to the future that a politician effectively never pays a political price for being responsible for underfunding decisions (whether refusing to raise money or mindlessly agreeing to increased benefits without a plan to pay for them).

]]>
By: KRock36 http://blogs.reuters.com/felix-salmon/2013/06/17/detroit-takes-aim-at-its-pensioners/comment-page-1/#comment-47393 Wed, 19 Jun 2013 15:04:46 +0000 http://blogs.reuters.com/felix-salmon/?p=22105#comment-47393 90% of unsecured debt to be written down isn’t “far from all of it”?

Detroit purchased those municipal insurance policies in order to sell the debt in the first place at a much lower rate to fund those massive pension contributions.

]]>