Suits OK'd for Bad State Pension

[Tekward]

Kentucky has the most underfunded and arguably the most corrupt state pension fund in the US. Even so, this is a surprising and positive development.

Court clears way for Kentucky pension lawsuit alleging bad investments | Lexington Herald-Leader

Glad to see some accountability.

 

[ERD50]

Hey, Illinois is worse!

Forbes Welcome

(might need to click through the 'welcome' to get to the article). Here's the raw link, if it helps:

http://www.forbes.com/sites/adammillsap/2016/06/01/public-pensions-are-states-biggest-problem/#15270cae30ba

According to the study, all of the bottom five states – Connecticut, Massachusetts, New Jersey, Illinois, and Kentucky – are below average in trust fund solvency, which measures a state’s risk-adjusted pension obligations. Kentucky and Illinois rank especially poorly at 45th and 46th respectively.

This might help with being more prudent with future investments, but suing the states that have high debt sounds like it could make the problem worse?

-ERD50

 

[Bamaman]

I get a kick reading our local newspaper's editorial comments about Alabama's massive pension program. One man has controlled their pension programs for many years, and he's invested in the Robert Trent Jones Golf Trail losing $10 million yearly and Mariott hotels on those golf courses. He also invested $650 million in a rail car factory that Canadian management stole blind--and the pension program had to take over, recapitalize and rent out.

The problem is that state employees have been promised pensions that money is not there to pay. Something's going to eventually have to give, as they're $2 billion short of meeting obligations. The State is essentially broke because of poor people's Medicaid. Property taxes remain 1/4th that of surrounding states.