It turns out the Wisconsin "Budget Repair Bill" adds costs to Wisconsin's pension system!
I'm just going to let the first part of the article speak for itself:
Wisconsin's controversial 2011 collective bargaining law may add $87.5 million to state retirement system costs next year due to a little-noticed change that will boost employee benefits.My jaw dropped when I saw that article. It looks like Governor Walker and Republican legislators only took in political considerations when the Act 10 was formulated. They didn't consider what the fiscal effects of Act 10 would be on Wisconsin's public retirement system, in fact, they threw David Stella, who was the secretary of the Department of Employee Trust Funds, under the bus to get what they want. Also, "more surprises" may be found by accountants later this year. I'm certain that Wisconsin taxpayers were screwed royally. Also, Julie Lund is a typical Walker spokesperson, as anyone who is a spokesperson for Walker won't answer hardball questions. There was a YouTube video I saw not too long ago of Walker spokesperson Ciara Mist, who, when asked questions about Walker's travel schedule, tried to change the subject.
The unanticipated costs aren't a back-breaking amount for the massive retirement fund, but they illustrate why laws that alter the complex retirement system should be examined carefully before enactment, said Robert Conlin, secretary of the Department of Employee Trust Funds.
Conlin's predecessor, David Stella, stepped down in January saying that elected officials disregarded his plea for a thorough examination of how changes in the law would affect the $82 billion pension fund.
Under provisions of the collective bargaining law, government employers -- state agencies, local governments and school boards -- are saving money because they no longer pay the employee's portion of payroll contribution to the pension fund.
But they are saving a little less than earlier believed, according to new financial projections provided to ETF board members Thursday, June 21.
It's possible that more surprises will be found later this summer when the department's 2011 financial books are closed and final 2013 contribution projections are approved in September, said Brian Murphy, president of Gabriel Roeder Smith and Company, the department's actuarial firm.
Previous year numbers are usually finalized in the spring, and contribution rates approved in June. Bookkeeping is delayed this
year because of several changes made to the retirement system by the union law and the biennial budget.
It's complicated because so many fluid factors -- salary levels, retirement rates and investment returns -- influence the finances of the state pension fund. Overall, employer and employee contributions to the fund totaled $1.5 billion in 2010, the latest year for which exact data is available. Under union contracts, nearly all of it was paid by employers.
Act 10 was Gov. Scott Walker's signature legislation, designed to rein in government costs. Spokeswoman Julie Lund said Walker wants a strong pension fund, but she didn't directly address Stella's criticism
Governor Walker and his Republican cronies in Wisconsin have always been about doing whatever it takes to get what they want. This is a textbook example of how Walker and Company operate.
Mitt Romney wants to take Scott Walker's "divide and conquer" agenda to the federal level if he is elected President. We can't allow Mitt Romney to divide and conquer the American people, so that's why I'm urging everyone to vote for President Obama on November 6, because we can't let Mitt Romney "drop the bomb" on all Americans.