From: The Federation of Connecticut Taxpayer
Organizations
Contact: Susan Kniep, President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
August 30, 2010
This is an Election Year! So Why is no one
talking about Connecticut’s
$57 Billion Debt and $200,000 Pensions?
Who Will Hold the Public Sector Unions in Check? Or
Will
Public Unions Force California Into Receivership? And Connecticut as well!
As of January
1, 2010, 7,289 Connecticut
Retirees
are Receiving Pensions
Between
$50,000 and $259,000
***
35,125 Connecticut Retirees are
Receiving
Pensions Less
than $50,000
***
4,989 CT
Teachers/Administrators are Receiving
Pensions Between $50,000 and $183,000
***
23,826 CT
Teachers/Administrators are
Receiving
Pensions Less than $50,000
FOR A COMPLETE LIST OF
PENSIONS: Email fctopresident@aol.com
Recently, Governor Rell announced:
Budget office projecting deficit of $63.4 million. http://www.ct.gov/governorrell/cwp/view.asp?A=3872&Q=464882
On August 29 the New York Times
wrote… THE American economy
is once again tilting toward danger. Despite an aggressive regimen of
treatments from the conventional to the exotic — more than $800 billion in
federal spending, and trillions of dollars worth of credit from the Federal Reserve — fears of a second recession
are growing, along with worries that the country may face several more years of
lean prospects. http://www.nytimes.com/2010/08/29/weekinreview/29goodman.html
In the August 27 Wall Street Journal article by California’s Governor
Arnold Schwarzenegger captioned Public Pensions and Our Fiscal Future he states
“Few Californians in the private sector have $1 million in
savings, but that's effectively the retirement account they guarantee to many
government employees”. http://online.wsj.com/article/SB10001424052748703447004575449813071709510.html?mod=rss_Today%27s_Most_Popular
According to Connecticut’s
latest Fiscal Accountability Report, “The state faces
significant long-term obligations including debt, unfunded pension liabilities
and unfunded post-employment retirement benefits which are estimated to exceed
$61 billion in total. http://www.ct.gov/opm/lib/opm/budget/2010_2011_midterm_budget/fiscalaccountability/fa_report_nov2009.pdf
As California grapples with its high pensions and debt, Connecticut needs a
reality check. Connecticut’s debt per
capita of $4859 exceeds that of California
at $2362 while we pay out many state pensions exceeding $150,000 with health
benefits. http://money.cnn.com/news/storysupplement/economy/state_debt/index.html
While our debt continues to climb, the news network Reuters recently informed the nation that Connecticut may have just a week's worth of
cash.
The article highlighted that “Connecticut
this autumn probably would have just a little more cash than it needs to pay a
week's expenses unless it issues $520 million of debt, according to the state
comptroller. Treasurer Denise Nappier, in a letter to
the Connecticut
Bond Commission, outlined her response to concerns that were raised about the
state's finances by a legislator.’ http://www.reuters.com/article/idUSTRE67G50A20100817?type=domesticNews
And Connecticut’s
debt is nothing new as noted by Bloomberg News….. Connecticut
Debt Balloons as State Readies Deficit Financing
By Michael McDonald - September 30, 2009 06:00 EDT Connecticut, the state with the most
tax-supported debt, will borrow $2.25 billion over the next two years to
balance its budget amid plunging income tax collections. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=alr1fBYI8nM4
The Connecticut
Business and Industry Association Survey reports
that the Connecticut
Economy is Weak
http://www.courant.com/business/hc-cbia-survey-20100824,0,1785486.story
Let’s Look at
what Connecticut State Employees were Paid in 2009.
http://www.scribd.com/full/30985869?access_key=key-2mpfvi2i96op2lxy6daw
Our nation’s debt is $13.4
trillion and climbing because President Obama and the Democrat controlled Congress never met a
bailout they didn’t like.
With the private sector
losing 2.6 million jobs, our President and Congress just gave a multi million
dollar bailout to the teacher’s unions of approximately $10 billion. This unconditional
bailout did not call for wage freezes or give backs from the unions even though
prior to the federal bailout, many public sector unions refused give backs
thereby forcing layoffs.
How Much Money Did Your Town
Receive?
Connecticut’s State
Department of Education received $110 Million from the $10 Billion Bailout http://www.sde.ct.gov/sde/cwp/view.asp?a=2703&Q=322610
.
Find out how much money your town received at this web link
…. http://www.sde.ct.gov/sde/lib/sde/excel/arra/ed_jobs_preliminary_entitlement_amounts.xls
Guidance Information on these funds can be found at Federal
Guidance and Use of Funds .
The State Department of Education contact person is Brian
Mahoney, Chief Financial Officer, Phone: 860-713-6464,
brian.mahoney@ct.gov
If no bailout in subsequent
years, then what?
If bailout funds are not received in subsequent years, public
employees retained or hired with bailout
funds will be funded in subsequent years through property tax increases unless
teachers unions agree to concessions or teachers are laid off.
Public sector pensions are
big business.
Recently, it was noted that
nationally Taxpayers
are on the hook for $3 trillion in pensions and
pension funds in at least seven states could dry up by 2020, and 31 states
could be in trouble by 2030 http://money.cnn.com/2010/08/19/news/economy/state_pension_funds/index.htm
A recent study predicts that Connecticut’s state
employee pension fund will be broke by 2019 . The study was done by Northwestern University
and is further explained at
http://www.ctmirror.com/story/6600/study-connecticut-pension-fund-fails-2019
The Hartford
Courant recently noted
the pension fund is on a fast train toward insolvency. In its last full actuarial valuation, the fund had $19.2 billion
worth of obligations but held just under $10 billion in assets, or about 52
percent of its liability. ….. Connecticut is one of seven states whose
pension funds will run out of money by 2020, according to the study. By 2025,
funds in 20 states will be under water. By 2030, 31 state pension funds will be
broke. http://articles.courant.com/2010-07-23/news/hc-ed-pension-fund-broke-0723-20100723_1_pension-fund-state-employee-governors
As many Connecticut
state employees collect lucrative pensions with health benefits, others are
also reaping financial rewards. Total compensation paid to state pension investment advisors for
2009 was nearly $89 million compared to $77 million in the previous year. Many state employees are receiving pensions in
excess of $150,000 with some as high as $250,000. For many, overtime is
factored in. Taxpayers also pay for the
medical benefits of state retirees, which is a contributing factor in driving Connecticut’s long term
debt to nearly $60 billion.
The latest annual report by State Treasurer Denise Nappier details, beginning on page 100, the investment
advisors receiving the $88 million and can be accessed at the following web
link …. http://www.state.ct.us/ott/pfmreports/2009CIF_CAFR.pdf . On Page 104 Brokerage Commissions are also
noted.
We suggest you may also wish to read the following in depth
report done by Don Michak of the Journal Inquirer in
April 2009.
Outside advisers collected
millions from state pension fund
By Don Michak, Journal Inquirer,
April, 2009
The state pension plan in the last fiscal year paid $76.8
million to its outside investment advisers, according to the latest annual
report from state Treasurer Denise L. Nappier. The
biggest share of the payments by the state treasury’s pension funds management
division — $21.8 million — went to 28 private investment advisers, or firms
that put together “private equity” investment deals to which the pension plan
has committed hundreds of millions of dollars and acts as a limited partner. The fiscal 2008 annual report also shows that
one investment management firm, Grantham, Mayo, Van Otterloo
& Co., was paid more fees than any other.
The firm collected a total of $8.5 million, including $3.9 million as an
adviser on international “emerging market” stocks, $2.7 as an adviser on
international developed market stocks, and $1.9 million as an adviser on other
international equities. The Massachusetts state
pension fund last week dumped Grantham, Mayo as one of its money managers over
big losses in connection with a cash fund invested in asset-backed securities
such as mortgage-related debt and home equity loans. While Massachusetts
had invested $228 million in the Grantham, Mayo’s “Emerging Country Debt Fund,”
the firm had moved a large portion of that fund’s assets into the cash fund,
the Boston
Globe reported. The Connecticut pension fund, meanwhile, also
paid four other investment advisers more than $2 million each. Emerging Management Markets LLC, an international equity adviser,
collected $3.8 million; Barclay’s Global Investors, and equity adviser, $3
million; Pegasus Investors IV LP, a private investment adviser, $2.7 million;
and Fairview
Constitution III, another private investment adviser, $2.4 million. Nappier’s report,
which lists expenses of more than $5,000 incurred by the treasury’s various
units, also shows that its cash management division paid $3.1 million to the
Bank of America for banking services, and that its unclaimed property division
paid a total of $2.6 million to ACS Unclaimed Property Clearinghouse for
“securities services and claims processing” and “identification and collection
of property.” The report also includes
rosters of the pension fund’s top 10 holdings in its investment funds. It
reveals, for example, that its mutual equity fund, which had a market value of
$8 billion as of June 30, 2008, included sizable investments in three oil
companies and three technology companies.
Topping that list was Exxon Mobil, with a market value of $280 million,
followed by Microsoft at $136.6 million, AT&T Inc. at $120.8 million,
Proctor & Gamble at $117.8 million, and General Electric at $117.6 million. The remainder included ConocoPhillips
at $101.2 million, Wal Mart Stores Inc. at $93.6
million, Chevron Corp. at $88.1 million, Intel Corp. at $83.2 million, and
Apple Inc. at $81 million.
Similarly, the pension fund’s portfolio of “emerging market” debt included
securities from Argentina
valued at a total of $45 million, from the Russian
Federation valued at $35.6 million, and from Malaysia
valued at $21.6 million.
Recently Gov. M.
Jodi Rell's deputy budget director unveiled a new plan to shave $300
million off annual pension costs by boosting worker contribution rates, raising
retirement ages and developing a new 401(k)-style retirement plan for new
employees. The plan is further explained at …. http://ctmirror.org/story/7407/rell-official-would-tighten-retirement-benefits
And there has been
speculation that another bailout could be on the horizon as the following
explains…..
Rick Manning: ‘No’ to union pension bailout The writer is director
of communications for Americans for Limited Government, a conservative advocacy
group based in Fairfax, Va. He is the former public affairs
chief of staff for the U.S.
Department of Labor. Just when you thought Congress might have run out of
bailout ideas for politically favored groups, along comes a bill from U.S. Sen.
Robert Casey, D-Pa., to bail out union pension funds. Operating under the benign- sounding title
“Create Jobs and Save Benefits Act of 2010,” Casey’s bill is actually nothing
more than a transfer of approximately $165 billion in labor-union pension debt
over to the U.S.
taxpayers. Article is continued at
…. http://www.omaha.com/article/20100524/NEWS0802/705249995
For those lucky enough to have a job, Connecticut Employees Spent the Last 260 Days Working for the
Government which is 29 days
past the national average of 231 days. http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171
You may find the following
information also of interest….
http://www.pensiontsunami.com/
Reports from the
State Treasurer
http://www.state.ct.us/ott/annualreport.htm
Unemployment
among US private sector workers above
10 percent
every month since May 2009 http://www.international.to/index.php?option=com_content&view=article&id=515:unemployment-among-us-private-sector-workers-above-10-percent-every-month-since-may-2009&catid=55:edward-j-oboyle&Itemid=85
From The Free Enterprise
Nation - INSANE GOVERNMENT SPENDING Governments
are paying public sector workers $600 BILLION a year more than private sector
workers. Your tax dollars are going into their own pockets! http://www.thefreeenterprisenation.org/initiatives/unrestrained-spending-debt-and-taxes.aspx
Pew Study Finds States Face $2.73
Trillion Bill for Retiree Benefits Washington,
DC - View the Full
Report and the individual state and
national fact sheets.
Huge Battle Looms Over Public Pensions - Who Will (Who
Should) Foot the Bill? Public pension plans are $1 to $3 trillion underfunded. I think the number is closer to $3 trillion
and destined to get worse. However, even $1 trillion is a massive problem. With so much at stake, a Battle Looms Over Huge Costs of Public
Pensions There’s a class war coming to the world of
government pensions. The haves are retirees who were once state or municipal
workers. Their seemingly guaranteed and ever-escalating monthly pension
benefits are breaking budgets nationwide. Continued at …. http://globaleconomicanalysis.blogspot.com/2010/08/huge-battle-looms-over-public-pensions.html
'Overpaid' Pensions Being
Seized By ELLEN E. SCHULTZ
Ralph Yore, a retired aircraft inspector, found out the hard
way what happens when companies make pension errors. Mr. Yore, 73 years old,
received a letter earlier this year saying the pension he had been receiving in
retirement was too large. The pension would be cut by two-thirds, to $967 a
month, the letter said—and he had to repay $100,000. http://online.wsj.com/article/SB10001424052748703723504575425421188456544.html?mod=WSJ_hpp_MIDDLTopStories
Yankee
Institute Provides Info on CT Salaries and Pensions
http://ctsunlight.org/
Visit the
Federation’s website frequently for updates on what is happening in our world,
country, state and towns
http://ctact.org/
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