A staff chart given to Los Angeles city council labor negotiators this month shows that city retirement costs nearly doubled in the last seven years, soaring to 18.6 percent of general fund revenue this fiscal year, $848 million.
In the next four years, the annual cost of the two city retirement systems for police and firefighters and for non-sworn employees is projected to increase by half to $1.285 billion, about 25.5 [...]
Detroit had more than $2.5 billion of debt downgraded by Moody’s Investors Service as the city faces a deficit approaching $270 million. The move may force the city to pay $350 million over seven years to terminate swap agreements.
“Although efforts to stabilize the city’s finances and improve liquidity are ongoing and could be resolved over the very near term, protracted discussions continue and this uncertainty increases bondholder risks,” Moody’s said today in [...]
Via Pension Pulse.
Lisa Lambert of Reuters reports, U.S. wants states to reveal more about pension funding:
A federal board will soon propose that U.S. states disclose more about their pension funding as worries grow whether states and municipalities can pay for their employees’ pensions.
Of the longer-term problems in states’ budgets, none loom larger than underfunded pensions. Recent budget crises forced states [...]
1) Fed Assets Rise to Record $2.55 Trillion on Bond Purchases
“The Federal Reserveâ€™s total assets rose by $11.9 billion to a record $2.55 trillion, the fifth record in as many weeks, as the central bank bought Treasury securities in the second round of its quantitative easing strategy.
Treasuries held by the Fed rose by $22.8 billion to $1.24 trillion as of yesterday. ”
2) State’s long-term pension debt [...]