This narrative is repeated by Bai when he states, "It's not as if the problem of public pensions suddenly got so much worse than it was before (the shortfalls have been building steadily for years, after all)...".. In fact, Bai is wrong and the condition of pensions did get suddenly much worse in 2009 after many of these funds lost over a third of their value during the global fiscal meltdown.
In September 1997, Mr. Lukashenko issued an executive decree setting new rates and cost-of-living conditions for pensions of state officials -- except, it seems, former chairmen of the Supreme Soviet.
The federal government's crackdown on the State of New Jersey this week for misrepresenting the condition of its pension funds raises a question: Who else might have pension numbers that could draw regulatory fire?
Last month, the Securities and Exchange Commission accused the State of New Jersey of securities fraud for misrepresenting the condition of its pension fund.
The rules, issued in 1985, have drawn criticism in recent years, as the financial condition of many pension plans has deteriorated.
But more important, it raises serious concerns that governments nationwide do not know the true condition of the pension funds they are responsible for.
The Securities and Exchange Commission normally polices companies, but last year it brought its first enforcement action ever against a state, accusing New Jersey of securities fraud for misleading bond investors about the condition of its pension fund.
It tried to assess in aggregate the condition of all pension plans sponsored by individual corporations in the United States, and it used a different set of measures -- the rules that govern the actual amount of cash companies must put into their pension funds.
The board that writes accounting rules for states and cities plans to issue a proposed solution Friday to one of the hottest disputes in public finance, whether governments are truthfully disclosing the size and condition of their pension funds, and how to fix any deficiencies.
Told of the union officials' accounts of the endorsement session, Mr. LaBolt said, "Rahm told the truth about the financial conditions of the pension system and the crisis that it faces".
Check out the conditions of your pension or annuity (if you have them) to see if they stop paying when you die, and factor in your lost Social Security income too.
