Hotdish politics: 3 pension plans post strong rebound

  • Article by: Abby Simons , Star Tribune
  • Updated: January 18, 2014 - 5:37 PM

Three large public pension plans in Minnesota have not only bounced back from dismal returns on their investments, but surpassed expectations in 2012, according to a state ­auditor’s report.

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comment229Jan. 18, 14 5:10 PM

"Most of the contributions to the plans were made by employers and employees, but the state also pitches in." I understand the statement, but I don't understand why. I wish the statement had been made, and then wish the reporter had taken some time to explain why the state "also pitches in." You remember, who, what, where, when, and why? I would like to know.... and does the state contribute also to the general teachers' retirement fund as well?

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supervon2Jan. 18, 14 9:12 PM

It looks like the St. Paul teachers get a heck of a lot more for their payments. How can that be?

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TreetoplevelJan. 18, 14 9:59 PM

What is really required is that the cost of pensions or other derived benefits be charged to current taxpayers, and not be deferred to the future. The cost of teachers, police and other public sector workers needs to be fully accounted for and not hidden from the taxpayer. Taxpayers will then be able to make political decisions in light of the true cost of such services. If strict accounting methods were observed, the cost of future benefits would show up on today's budget, and thus be subject to the discipline of the balanced budget requirement of most states.

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jackpinesavJan. 19, 14 6:29 AM

Reality is that Duluth and St Paul teachers pensins have been poorly managed over the years, it was well known and they now wish to be bailed by the state. Lawmakers would do well to be cautious and hold the groups accountable as part of any plan to assimilate them into the well run programs for other public employees. Minnesota is far ahead of other states in having strong well funded pension funds and should not be judged by maverick groups like these.

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sadie23Jan. 19, 14 9:32 AM

As predicted, the Star Tribune is on schedule. Every mid January shortly before the MN Legislative session begins the Star Tribune prints public employee pension articles to get the "Anti public employee" groups all whipped up. Why not run one of these stories and hold back the comments option. That will really send the "Anti's" into a frenzy.

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mgmckeJan. 19, 1411:06 AM

Those greedy teachers! Work more than 30 years as a teacher and then expect to live the lavish life that $18000 or $31205 a year affords you. As far as why St. Paul gets so much more; Many of the current St. Paul retirees were originally hired before 1980 as such they did not pay into so they DO NOT get social security (Like Federal workers of the time). As of tax year 2014 each school district AND teacher is mandated to place 7.5% of the teachers gross earnings into the Minnesota Teachers' Retirement Assoc. The combined 15% annual contribution is what funds these "lavish" retirement packages.

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mnavariceJan. 19, 1411:42 AM

s of tax year 2014 each school district AND teacher is mandated to place 7.5% of the teachers gross earnings into the Minnesota Teachers' Retirement Assoc. The combined 15% annual contribution is what funds these "lavish" retirement packages.---- 100% match with defined benefit? Pretty lucrative by any measure.

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sunspotsJan. 20, 14 8:02 AM

"the three had returns ranging from 12.5 to 15 percent. Compare these numbers with 2011, when each plan showed a return of less than 1 percent. The most recent numbers appear to be a return to normal." - No wonder these pension funds are so woefully underfunded if 12.5% annual return is considered normal....

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jpcooperJan. 20, 14 9:11 AM

Since the Duluth Teachers Pension Fund has rebounded , the State should no longer t guarantee the payouts!

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