New Study Paints Bleak Picture of Philly Workers' Pension Funds
PHILADELPHIA (CBS) -- A new study of pension funds nationwide finds that the pension system for Philadelphia government workers could be out of cash in five years.
The study by Northwestern University looked at more than 75 pension plans for government workers in cities and towns and found that Philadelphia's is the least solvent.
The report says the plan can only pay existing promises to workers with current assets through the year 2015.
Read the Full Northwestern Univ. Report
Mayor Nutter had yet to read the study when we asked for his reaction:
"I don't know what the basis of their analysis is. What I can tell you is that we're 45-percent funded. It's not a great position to be in. I think there are actually some smaller cities that are less funded."
Rob Dubow, the mayor's finance director, says so long as the city continues to pay into the fund, the question of how long the fund would last only on its current assets is not particularly relevant:
"It includes a scenario that says if we stop putting money into the pension fund, it would run out of money. That's not a real-world scenario -- it's not something that will happen."
Dubow says they're taking steps -- including a two-tiered pension now in place for the police union -- toward boosting the health of the fund:
"We've been saying for years now that our fund is very weak and we need to do something to address the problems with our fund. And that's one of the main points in collective bargaining."
Reported by KYW City Hall Bureau Chief Mike Dunn.
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