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Greenline Wealth Management
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Case in Detroit Highlights Costs of 'Extra' Pension Payments
The New York Times; subscription may be required Oct. 23, 2013 "[Detroit's] pension system made extra payments for decades to thousands of people ... The pension board thought it found the money for the extra payments by skimming off 'the excess' when returns on investments exceeded the plan's target ... New York City; Phoenix; San Jose, Calif.; and Tampa, Fla., along with some of the public plans in Illinois, Indiana, Texas and Mississippi also have the add-ons.... The pension extras have cost Detroit billions of dollars over the years, hastening the city's downfall, yet state laws say the extra payments must continue." |
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