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Old 09-29-2013, 12:08 PM   #21
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Saving some money may help to hedge.
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Old 09-29-2013, 12:25 PM   #22
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Originally Posted by dtbach View Post
What reserves?? Certainly none in Detroit or Illinois.
The state my pension is with has reserves they can tap one being a budget reserve.
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Old 09-29-2013, 02:19 PM   #23
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I have diversified my sources of income so the failure of one won't drive me to the poor house. But, if I was overly dependent on a wobbly pension, I would seriously consider taking a part time job and delaying SS.

I really feel it for those people who were opted out of SS In favor of an underfunded pension plan. Shouldn't somebody go to prison for such nonsense, or at least commit ritual suicide?
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Old 09-29-2013, 02:56 PM   #24
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Many municipal funds are already "hedged" through derivatives. (2011 article) http://www.chicagobusiness.com/artic...th-investments
Quote:
The Illinois Teachers' Retirement System — the worst-funded major pension plan in the U.S. — is pumping more of its assets into higher-risk investments while using accounting methods that some pension experts say understate its funding shortfall.
Springfield-based TRS, the state's largest pension provider, plans to allocate about a third of its $37.8-billion portfolio to alternative investments such as private-equity and hedge funds, a four-month Crain's investigation of TRS holdings and practices finds. These unconventional assets typically dangle the potential for higher returns, but only because they also carry greater risks and fees. TRS is shifting its portfolio while it's still developing an in-house risk-management system.
With much attention to Illinois pension funds, it may be well to note that all "municipal" funds are not equal. While some municipalities may share in certain funds, others will be separate and apart.

I think the likelyhood of sudden defunding is not in the cards. With very few exceptions, most funds have capital that will be spent down before any massive defunding... even though the end result will be the same.
Mandatory "legal" funding?... Hmmm... which stone has the blood?

Plan B was to have at least one member of family with SS.
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Old 10-03-2013, 07:24 PM   #25
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I attended this today. I encourage anyone who has access to this sort of thing in their state to participate. Note: this is not a union (I am not a member of any union nor are people like me who worked in Illinois).

It was informative, although began with what appeared to me to be state politicians giving double-talk. I brought a laptop with me to take notes, but have decided not to post them here for two reasons: 1) I could have misinterpreted something and don't want to spread bad information, and 2) I don't want to spark the sort of thing you can guess about. I realize there are many differing opinions.

There was, however a very good (and long) talk about state budgets, pension funding, and taxes. Of course, the focus was Illinois.

I chased down the speaker after the talk and asked if he would post his slides as I know people who are interested (not you all, but you qualify too). He said yes. If it takes too long for them to put it up, I will scan my hard copy and post. (I think you can do that?)
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Old 10-03-2013, 08:38 PM   #26
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I live solely off a pension. WEP'd so SS will be an insignificant drip. Pension funds of over 30 billion held in trust with an 85% funded status, so not overly worried. I don't have a plan "B", but have a plan "b". I worked part time 3 years after retirement and save 20% of each check and put in reserve in case my pension ever got clipped down the road. Total wipeout would put me in soup line, government assistance, and Medicaid!
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