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Interesting. So basically the figure is so much higher than the average, because they are actually setting aside as much money as they are supposed to be.
As I have noted from what I have read about pension funds nationally, both private and government, are under-reserved.
So essentially, the reason that Wisconsin actually pays so much more into the fund is that they are being fiscally prudent, and not shoving the payments off until later, when they will need to be much bigger.
Even more telling:
It is a well-worn budget gimmick for governors to monkey with pension funds to balance budgets and create gimmies. Either taking money directly, as appears to be the case here, or changing some of the assumptions to make it appear as if the liability is smaller (reducing funding requirements, and freeing up cash for other pet projects)Blogger Kristen Emery points to what she calls a "pension theft provision" in Walker's bill:
On page three of the bill, "third paragraph from the top, there is very interesting language that leads to the very important question for Governor Walker. The paragraph mandates that a study of the existing Wisconsin Retirement System be performed and it must “specifically address establishing a defined contribution plan as an option for WRS participating employees” and the deadline for completing this study is June 30, 2012. I don’t think that Walker would be adding retirement benefits for workers - so I am wondering if the Republican Governors that are trying to get rid of collective bargaining of retirement benefits, so that they can terminate the existing plans and recover excess assets for their state balance sheets.
"If Governor Walker’s bill passes, and collective bargaining of retirement benefits is eliminated, then next year when Governor Walker decides it is in Wisconsin’s best interests to get rid of the existing plan and replace it with something less valuable for the employees. And the employees would have no say and no one can keep Walker from raiding your retirement savings."
Over beers at Donnelly's retirement party, Phillips agrees: "ETF has $78 billion in retirement funds--it has got to have occurred to someone in the Governor's office to use those funds," says.
Have you really never worked in a place, or known anyone who has worked in a place, where lower level (thus lower paid) employees typically stay in the office for much longer hours than their bosses and company executives?
