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Makes BHS pension fund look good

kidmugsy
kidmugsy Posts: 12,709 Forumite
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
in Pensions, annuities & retirement planning
"Illinois General Assembly Retirement System Only 13.52% Funded"

The next sizeable market downturn is going to wreak carnage on State and municipal DB pension schemes in the US. I suppose that will amplify the downturn.

I don't suppose an amplified downturn is going to do any favours to our own DB schemes.

Does this post have a point? Yes: 13.52%. Dear heavens!
Free the dunston one next time too.
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Comments

  • MoneySavingUser
    MoneySavingUser Posts: 1,667 Forumite
    Not a big deal, they won't last to retirement once Trump takes their healthcare plans....
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    MoneySavingUser wrote: »
    Not a big deal, they won't last to retirement once Trump takes their healthcare plans....

    Do members of the Illinois General Assembly use Obamacare?
    Free the dunston one next time too.
  • Elijah_Bailey
    Elijah_Bailey Posts: 85 Forumite
    TrumpDoesNotCare
  • woolly_wombat
    woolly_wombat Posts: 841 Forumite
    Part of the Furniture 500 Posts Name Dropper
    kidmugsy wrote: »
    "Illinois General Assembly Retirement System Only 13.52% Funded"

    It couldn't happen over here...could it?
    .
  • hugheskevi
    hugheskevi Posts: 4,730 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The next sizeable market downturn is going to wreak carnage on State and municipal DB pension schemes in the US.

    Taking the stated funding ratio at face value of 13.52%, the fund is pretty well insultated from market downturns - even if their assets slump by 50% their funding level would still be 6.76%, which I doubt is materially different to 13.52%.

    If they were 90% funded, a 50% slump in assets would be much more serious.
    It couldn't happen over here...could it?

    Only in the LGPS, all our other big pension schemes are unfunded, so even better protected from market downturns ;)
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    kidmugsy wrote: »
    Do members of the Illinois General Assembly use Obamacare?


    I would imagine they have private govt funded health care like we had (my dad was Dept of commerce) GEICO (govt employees insurance corporation)
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    atush wrote: »
    I would imagine they have private govt funded health care like we had (my dad was Dept of commerce) GEICO (govt employees insurance corporation)

    I was amused when Congress passed Obamacare and carefully insulated itself from it. Apparently they must have read just enough of the bill to see which side their bread was buttered.
    Free the dunston one next time too.
  • woolly_wombat
    woolly_wombat Posts: 841 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 17 March 2017 at 9:13AM
    hugheskevi wrote: »
    Only in the LGPS, all our other big pension schemes are unfunded, so even better protected from market downturns ;)

    Well you said it hugheskevi!

    WW (Equitable Life so-called with-profits pension, deferred LGPS member.:eek: )
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    hugheskevi wrote: »
    Taking the stated funding ratio at face value of 13.52%, the fund is pretty well insultated from market downturns

    Since the General Assembly is the State Legislature it is insulated anyway; they'll doubtless just vote themselves lots of money. But they won't easily be able to vote lots of money for all the other insolvent pension schemes in the Illinois government without massive rises in state taxes. So taxpayers and businesses will flee, and it'll be the old downward spiral with, eventually, defaults on pension payments. Won't it?
    Free the dunston one next time too.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    atush wrote: »
    I would imagine they have private govt funded health care like we had (my dad was Dept of commerce) GEICO (govt employees insurance corporation)

    My sarcastic question was aimed at the foolishness of the knee-jerk anti-Trumpers. Maybe "knee-" is redundant.
    Free the dunston one next time too.
This discussion has been closed.
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