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Archive for Thursday, November 12, 2009

Legislators to meet next week to discuss underfunded state pension system

November 12, 2009

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— A panel of Kansas legislators meets next week to address the state pension system's long-term funding problems.

The Joint Committee on Pensions, Investments and Benefits is scheduled to meet Tuesday to discuss the Kansas Public Employees Retirement System.

A recent report by University of Kansas economists describes the pension system as "bankrupt."

KPERS officials, Gov. Mark Parkinson and some legislators say the description is inaccurate because retirees' current benefits aren't in danger.

But they acknowledge there's a big gap between the system's projected income and expenses over the next 25 years. At the end of last year, KPERS said the shortfall was $8.3 billion.

Comments

toe 4 years, 5 months ago

KPERS has been a poorly run pension fund ever since they invested in Ward Park Mall in the 80's,

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bobberboy 4 years, 5 months ago

No KPERS. Over my dead body !

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yankeevet 4 years, 5 months ago

so much for a retirement system from KPERS....can i have my money back..........??

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KU_cynic 4 years, 5 months ago

Let's be precise: KPERS is not bankrupt in the sense that the state can't draw down its accounts to meet promised payments for the next several years.

But, KPERS is indeed bankrupt in the sense that the present value of promised benefits vastly exceeds the current fund balance and then PV of expected future contributiions.

I've heard a figure -- probably need to be updated a bit given recent stock markets movements, but it would remain grim. Every Kansas household would have to pay $10,000 in taxes right now to make KPERS sound.

Does that sound serious? You bet.

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Boston_Corbett 4 years, 5 months ago

"A recent report by University of Kansas economists describes the pension system as "bankrupt."


It is economist, singular, I believe.

And he is clearly funded, bought and paid for by the anti-government, anti-tax Koch's, in a similar vein to Americans For Prosperity. They have never met a government function which they agree with, except those that protect their own markets and profits.

If his use of the word "bankrupt" is appropriate, you would have to use the same term to describe virtually every defined benefit pension program in the country.

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