Detroit Pension Slush Fund Cost City Billions
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  • Anthony

    “One-party rule corrupted even the most basic moral and prudential compass.” Perhaps, WRM as far as it goes; but financial management that was not up to par – too many said yes to spending interests too often – must figure in your calculus. Such calculation inures to human foible maybe enhanced by occasional one-party rule.

  • lukelea

    That’s why corrupt union officials backed up by (or fronting for) the mob are always wanting to get their hands on the union’s pension fund. It’s a big pot of money nobody’s looking at very closely, just waiting to be stolen. The poor benighted membership of ordinary slobs has no idea of what is going on. Same goes for Detroit’s public employees — or, indeed, the employees of most private corporations.

    The U.S. government seems to be the only trustworthy fiduciary.

    • avery12

      I was with ya up until that last sentence.

  • NCMountainGirl

    Why aren’t the trustees in jail? They didn’t follow the terms of the plan. Then not only did they squander plan assets, they misrepresented the soundness of the plan itself by taking money from the plan and returning it to the city to fund that year’s payment into the plan.

  • michaelj68

    So Detroit’s pension was in one sense a defined benefit if the market under-performed, we need tax payers or suckers to kick more money for the shortfall. But then it became a defined contribution fund paying out more than promised if the fund earned “excess earnings.” What a wonderful way to eat your cake and have it too.

  • Boritz

    Great words of wisdom:
    “lock box”
    -Al Gore

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