From
Capitol Report New Mexico.com - Members of the
Senate Finance Committee who thought New Mexico’s two state-sponsored pension plans are doing pretty well and just need some tweaking to stay financially secure received a splash of ice-cold water on Monday (Jan. 23) when two financial analysts said just the opposite. “The numbers are actually worse than they appear,” said
Sean McShea, a fixed-income portfolio manager for
Ryan Labs Asset Management out of New York City. And
Brad Day, a retired Albuquerque business owner who specialized in retirement pension plans, urged committee members to “get off the road we’re on now, which is a road to nowhere.” The
Educational Retirement Board (ERB) and the
Public Employees Retirement Assocation (PERA) comprise two state-supported pensions.
In recent committee meeting hearings in the Roundhouse, leaders from the ERB and PERA acknowledged to lawmakers that adjustments need to be made to keep their plans solvent into the future as more and more baby boomers retire and say their respective boards and members are willing to make refine their plans. But McShea and Day painted a much bleaker picture Monday, saying changes on the margins are not enough. “We all know there’s going to be a retirement crisis in 2020,” McShea said adding, ”I think one day we’ll look at municipal debt and everything is fine but the next day we’ll have an epiphany and everything has changed for the worse.” Both McShea and Day also called into question the expected return on investments for the state pension plans, posted at 7.75 percent per year — a number they say is way too high. Day — who is actually
a trustee at the ERB – said unless fundamental changes are made, “It’s going to raise unfunded liabilities to a level that is catastrophic.” Day told the committee he recommends eliminating the cost of living adjustment to the ERB plan and raising the minimum retirement age at the ERB to 62. Day said he’s made these recommendations to the ERB but “I’m the only private sector person on the ERB … I get out-voted virtually every time … The recommendation of the ERB [board] in my opinion was like spitting in the ocean … it will have practically no effect.”
Read more
Are NM’s pensions heading for the Intensive Care Unit?
NewsNM (Swickard) Wikipedia: The smartass (Equus genius) is a type of donkey known for its very high intelligence, From KOAT-TV.com - GRANTS, N.M. -- A Gallup woman accused a Department of Public Safety (DPS) officer of being rude and calling her husband a derogatory name. Sarah Terrell said she is angry at the way a motor transportation officer treated her husband Tuesday. Terrell said the officer pulled them over for passing him on the freeway. Justin Terrell, Sarah Terrell's husband, said his wife had been following the officer for more than 20 miles while she was driving in the left lane. "I had decided enough was enough because there were cars piling up behind me," Sarah Terrell said. Sarah Terrell said when they passed him, the officer pulled her over and wrote her a citation for following too closely and passing in the right lane. Sarah Terrell said she was wrongfully pulled over and cited, and it's all caught on video. When her husband was asking the officer for clarifications, the officer was caught on camera saying, "You're just trying to be a smartass is what you're doing." "There was no mistake that he meant to call my husband a smartass to his face. It was just very disrespectful," Sarah Terrell said. Terrell said the officer even wrote the wrong statute on her ticket, and a DPS spokesperson said the officer did write the wrong number. Read more
Posts
