tag:blogger.com,1999:blog-7609353726565000072.post8579822404514408898..comments2023-06-14T02:29:40.319-07:00Comments on PSPRS Pension Watch: Just in time for Christmas, here's something for everyone: the DROP, service purchases, COLA's, and investment returns through August 2018 (CORRECTED)Drop Zonehttp://www.blogger.com/profile/07195030344305212432noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7609353726565000072.post-33252965789317796002018-12-03T15:40:11.486-07:002018-12-03T15:40:11.486-07:00I agree. It would only take a few years of 5-10% ...I agree. It would only take a few years of 5-10% inflation to drop the value of a retiree's benefit 20-30%. Nevermind what early 1980's inflation would do. This would be devastating to anyone, but particularly to someone who just recently retired.<br /><br />Inflation is the easiest tool for PSPRS to use to become fully funded. Inflation is good for debtors like PSPRS. If inflation takes off, PSPRS can take advantage of increasing rates of return, particularly on risk-free investments like Treasury bills, while the value of retirees' benefits shrink every year. Voila, PSPRS becomes fully funded on the backs of retirees.<br /><br />As for future inflation protection, remember that COLA's are now funded through contributions from employees and employers. How willing will Tier 3 members, who in 10-12 years will be the majority of active PSPRS members, be to see their paychecks reduced in order to help the Tier 1 members who shafted them with legislative changes supported by today's cabal of union leaders? Most likely they will take any benefits from higher inflation for themselves,via wage increases and lowered contributions rares, as they should. The current public safety union leadership wanted these changes to protect their own benefits, and they should be forced to live with the consequences of those changes. Thanks for your comment.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-42936754277891511702018-12-02T23:13:40.468-07:002018-12-02T23:13:40.468-07:00My concern has always been that if, or when, infla...My concern has always been that if, or when, inflation starts to increase rapidly PSPRS retirees wil fall further and further behind when the maximum COLA is set at 2%. All one has to do is look back at the 1980s to see inflation at 15-18% to understand how devastating that will be to those of us locked into a low COLA rate. Last year I asked Jared Smout, PSPRS director, what would occur if inflation increased. His reply was that “he was sure the Arizona legislature would step in and help.” Yeah, right!RetCophttps://www.blogger.com/profile/04820438520728462086noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-18357182026212959192018-12-02T00:23:41.045-07:002018-12-02T00:23:41.045-07:00They pay the highest fees so as to enrich themselv...They pay the highest fees so as to enrich themselves and friends. Politics 101. Until enough people stop drinking the koolaid and speak up they will forever do it. But be careful actives, if you do speak up you will be criticized and punished.Anonymoushttps://www.blogger.com/profile/02693866526016182811noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-50282521448109186582018-12-01T19:06:38.200-07:002018-12-01T19:06:38.200-07:00Thank you for the correction. I have changed the p...Thank you for the correction. I have changed the post to reflect this information regarding Mr. Tobin. As to your second point, meeting minutes are the only official record of any Board of Trustees meeting. That is why the Board must vote to approve them in the following month's meeting. Without the official meeting minutes, how am I to know that you are providing me with accurate information or that you heard correctly what was said in the meeting? I present what is in the meeting materials as it is the most up-to-date information available and what is likely to interest readers.Drop Zonehttps://www.blogger.com/profile/07195030344305212432noreply@blogger.comtag:blogger.com,1999:blog-7609353726565000072.post-87367281275718904942018-12-01T17:30:50.182-07:002018-12-01T17:30:50.182-07:00I would expect you to do at least a tiny bit of re...I would expect you to do at least a tiny bit of research for your stories but I guess that is to much to ask.<br />1. Tobin is non- contributory drop so changing tier 1b drop has no impact on him.<br />2. If you actually listened to the meeting you would of heard that the board voted to keep tier 3 rates the same as they are this year for next year.<br />Anonymousnoreply@blogger.com