Knox County sheriff’s pension fund in trouble already

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Knox County sheriff’s pension fund in trouble already

Thursday, January 22nd, 2009 | Misc |

Knoxville News Sentinel - Knox Sheriff’s Office pension fund needs cash:

The Knox County Sheriff’s Office pension plan will need an infusion of $4.5 million to $5.6 million during the fiscal year that begins July 1 to make the fund actuarially sound, commissioners learned today.

I’ve noted before that Knox County entered into this defined benefits pension plan at precisely the same time everyone else was trying desperately to get out of such economically-disastrous arrangements. One reason they’re disastrous is that when the pension fund’s investments decline taxpayers have to make up the difference.

The fund had $100 million last year but as of Nov. 30 had fallen to $70 million because of losses in the stock market, according to Bob Cross, of USI Consulting Group, which works with the Knox County Pension Board.

Even before the downturn in stocks and real estate the plan was projected to cost Knox County taxpayers $100 million over 20 years. I didn’t realize that the move was approved by the voters:

The pension - approved in November 2006 by a margin of 497 votes out of 103,529 cast - gives deputies retiring with 30 years of service 75 percent of the average of their highest two years’ pay, plus a 3 percent annual cost-of-living adjustment.

Previously

2 Comments to Knox County sheriff’s pension fund in trouble already

SayUncle » There’s a reason why companies largely don’t offer defined benefit plans anymore
January 23, 2009

[...] And the KCSO is figuring that out: http://www.lesjones.com/2009/01/22/knox-county-sheriffs-pension-fund-in-trouble-already/ [...]

Because Tim Hutchison needs a bigger pension | Les Jones
October 14, 2009

[...] The plan was estimated to cost $100 million over 20 years. Within a year the costs were revised upwards due to a deteriorating stock market. The only mitigating factor in Hutchison’s defense was [...]