Sunday, January 20, 2019

Greensboro's Taxpayer Funded Pension Liability Facade

https://user-kcmpnye.cld.bz/COG-Comprehensive-Annual-Financial-Report/II/
According to the City of Greensboro's 2018 "Comprehensive Annual Financial Report", or CAFR,

The discount rate predicts the present value of future payments.

The recession in 2008/9 erased much of the gains documented over the last 30 years.

Greensboro's pension plan useS a 7.2 % discount rate to 'guess' how much the money in the pension fund will make over time.

"if the assumed discount rate is lowered, then Greensboro's pension will appear to be more expensive over time on teh assumption the fund will earn less money over time, meaning more taxpayer money will need to be contributed.

If the expectation falls to 6.2%, the plan will need $117,75,680 more taxpayer money to provide future retirement income streams to folks like 'retired' City Manager Jim Westmoreland, who oversaw the fleecing of local taxpayers for downtown real estate owner profits.

Stanford Institute for Economic Policy contends the “risk free” discount rate should be only 3%, which would about double the $117,75,680 guess by the City's bean counters.

Our 'leaders' don't address this issue, as their positions are dependent on uninformed taxpayer base who let them hand out cheese to their donors.

At the federal and global levels, if financial markets were to falter for more than a short amount of time, too many uneducated onlookers could get the idea in their heads that they've been had.

The answer was, is and will most likely continue to be artificial stability created by central banks, just like the last episode leading into the end of 2018, which, during a federal shutdown, massive political uncertainty widespread corporate earnings warnings and falling economic indicators,  ended with;

  

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