Milwaukee’s Model Pension Plan

[Valin]

Via Meadia:

10/3/13

 

Weve devoted ample time on this blog to the cities and states who have grossly mismanaged their pension plans, and for good reason: there are far too many of them. But while the big messes get all the press, there are some cities that have been doing it right. They deserve a shout-out once in awhile. Milwaukee is a good example of a high performer; its pension fund has been fully fundedor close to itfor nearly a quarter century.

 

How did the city pull off a feat that has proven so difficult for so many others? As one person told NPR, its not rocket science:

 

They pay their annual required contribution very consistently, Kellar says. So that means in good years or bad, theyre maintaining a very good discipline.

 

Even when the pension had surplus funds and Milwaukee wasnt required to make a contribution, officials here did so anyway. In contrast, Kellar says, other cities couldnt resist raiding pension money when the economy blew up and they needed it for other expenses.

 

(Snip)

Indeed, its the simplicity of the solution that makes the failure of other cities so disappointing.

(Snip)

[Geee]

I don't know if this has anything to do with Scott Walker, but he was in charge of Milwaukee finances before he was governor. He was voted in as county manager because of a huge pension scandal and changed things when he got in.

[Valin]

I don't know if this has anything to do with Scott Walker, but he was in charge of Milwaukee finances before he was governor. He was voted in as county manager because of a huge pension scandal and changed things when he got in.

I can't say but it sounds like this goes back before him.