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 SUN/MON PROMO |
Web Promo |
| Hello/Intro |
Key: Business / Industry |
| Future of Retirement |
Key: Community Politics / Government |
| Conversation |
Key: Social Services |
| Thanks/Goodbye |
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| SUN/MON PROMO |
Web Promo |
| Hello/Intro |
Key: Business / Industry |
| Future of Retirement |
Key: Community Politics / Government |
| Conversation |
Key: Social Services |
| Thanks/Goodbye |
| SUN/MON PROMO Return to index of stories... |
Bite: 14:38:25 NH has a huge problem, with our pension liability system. Track: Legislators look for pension reform, but public employees say they're not the problem. |
| Hello/Intro Return to index of stories... |
HELLO. I'M RICHARD AGER. WELCOME TO NH OUTLOOK. MORE THAN 75,000 CURRENT AND RETIRED PUBLIC EMPLOYEES RELY ON THE NEW HAMPSHIRE RETIREMENT SYSTEM. BUT THERE ARE GROWING CONCERNS THAT THE SYSTEM IS UNDERFUNDED - AND WITHOUT CHANGES, COULD POSE A HUGE BURDEN FOR TAXPAYERS IN THE NEAR FUTURE. AT A RECENT NEWS CONFERENCE, STATE LEGISLATORS UNVEILED THEIR PROPOSALS FOR REFORM. DISCUSSION |
| Future of Retirement Return to index of stories... |
Video: Shots of police, fire and teachers and state employees - Track: Around New Hampshire, more than 50,000 teachers, state workers, police and firefighters do their daily work, knowing that at the end of their service, they'll get a regular retirement check. That bargain has always been part of the deal for public employees, but now a growing number of public employers say with spiraling costs, it's time for a new deal. Bite: 14:48:07 For Peterborough and many other small towns the cost of this benefit has become prohibitive. In Peterborough for example we want to expand our fire, public safety, and emergency response but we are unable to hire and fund full time firefighter and emergency response positions when retirement cost alone are $31 to every $100 in compensation. Track: George Maglaras has been in government for 35 years - and saw the problem build over time. Bite: 14:45:53 But I do believe its time for us to take a hard look at our retirement system and keep the promises that we made adjust the system so it will be there for long term sustainability for those 75,000 folks that are invested in the system. Track: To contain costs, Senator Jeb Bradley has proposed a number of changes. Bite: 14:41:52 Ask as other states do to people in public safety jobs work for 25 years instead of 20 years, to exclude certain things like sick time and vacation time from the calculation of the pension, to average out over 5 years instead of three years, to continue the freeze on the medical subsidy and for new employees to increase the contribution level that they will pay into the retirement system. Track: This proposal is being called Senate Bill 3 - and is clearly a priority for Senate leadership. Bite; 14:37:25 The status quo is no longer acceptable. In action is no longer an option, is time for elected officials, employers, and employees to get to work together, to solve this problem. |
| Conversation Return to index of stories... |
Joining me at the State Library are Senator Jeb Bradley, Prime Sponsor of Senate Bill 3, David Lang, President of the Professional Firefighters of NH, and Steve Norton, Executive Director of the Center for Public Policy studies in Concord. Welcome all. 1: LET'S START WITH LOOKING FOR AGREEMENT ABOUT SOME NUMBERS. THE RETIREMENT SYSTEM HAS ABOUT $4.9 BILLION IN ASSETS - WHICH MEANS IT IS FUNDED FOR ABOUT 59% OF ITS OBLIGATIONS. THE SHORTFALL IS $3.5 BILLION. A HEALTHY SYSTEM SHOULD BE FUNDED TO COVER ABOUT 80% OF ITS OBLIGATIONS. 2: WE'LL GET TO SENATOR BRADLEY'S PROPOSALS IN A MOMENT - BUT A BIT OF HISTORY ON WHAT CAUSED THIS SHORTFALL. I SPOKE WITH SOMEONE VERY FAMILIAR WITH THE NH RETIREMENT SYSTEM. THEIR TAKE WAS: THE 3.5 BILLION GAP WAS CAUSED BY 3 THINGS: 1: ACTUARIAL METHODS THAT PRESUMED UNREALISTIC RATES OF RETURN - WHICH MEANT EMPLOYERS COULD CONTRIBUTE LESS. $1.5 BILLION THERE. 2: GAINSHARING - FROM THE EARLY 90'S TO 2006 - WHICH DIVERTED INVESTMENT RETURNS ABOVE A CERTAIN LEVEL. A BILLION THERE. 3: THE MARKET CRASH - ABOUT A BILLION. SENATOR BRADLEY - TAKE IT YOU AGREE THE ACTUARIAL METHODS - BEANCOUNTERS WERE COUNTING MAGIC BEANS. GAINSHARING - BY ANY OTHER NAME - SOUNDS LIKE SKIMMING THE TAKE. AS ANYONE WHO HAD - AND KEPT AN IRA OR 401K KNOWS - THE MARKET CRASH REBOUNDED. 3: DAVE LANG - SOME SCARY SOUNDING NUMBERS: AS WE HEARD FROM THE PETERBOROUGH TOWN CLERK, HAVING TO PAY $31 IN RETIREMENT CONTRIBUTIONS FOR EVERY $100 YOU PAY A NEW FIREMAN - WHO CAN AFFORD THAT? FAIR COMMENT? 4: ACCORDING TO THE PEW CENTER, WE'RE ONE OF 21 STATES BELOW ADEQUATE FUNDING. EXAMPLE: IN 2008 - STATE'S REQUIRED PENSION CONTRIBUTION WAS $250 MILLION - ACTUAL CONTRIBUTION WAS $189 MILLION. 5: STEVE - LAST YEAR, YOUR ECONOMIC OUTLOOK PREDICTED CONTRIBUTIONS WOULD HIT 23% ON AVERAGE THIS YEAR. YOU STILL THINK THAT? IS THIS LIKE SPIRALLING MEDICAL INSURANCE COSTS - NO END IN SIGHT ? 6: SENATOR BRADLEY - YOUR BILL HAS A NUMBER OF PROPOSALS: A BIGGER CONTRIBUTIONS FROM EMPLOYEES B POLICE AND FIRE QUALIFY AFTER 25 YEARS, NOT 20 - THIS APPLIES TO NEW HIRES AND THOSE WTH LESS THAN 10 YEARS ON THE JOB. C PENSION CAP - NO GREATER THAN FINAL YEAR'S SALARY D CUT DOWN SPIKING - AVERAGE OF 5 YEARS HIGHEST EARNINGS - NOT CURRENT 3 YEARS E EVENTUALLY REPLACE DEFINED PENSION WITH 401 STYLE. F $90 MILLION TRANSFER - DRAIN SPECIAL ACCOUNT THAT PAYS FOR COST OF LIVING INCREASES AND PUT MONEY INTO ANNUITY. THOSE ALL SEEM TO ASK MORE FROM THE EMPLOYEES. DAVE LANG - YOU HAVBE SAID THERE ARE 2 WAYS TO RECOVER 1: MARKET REBOUND 2: EMPLOYERS PAY WHAT THEY OWE: 3.7B 7: THIS IS AN EMOTIONAL ISSUE - LOOK AT THE ENORMOUS READER RESPONSE TO NEWSPAPER ARTICLES ABOUT POLICE DOING EXTRA DETAILS IN THEIR LAST FEW YEARS TO COLLECT $100,000 PENSIONS - THERE IS A PROVISION TO PREVENT SPIKING - MAKE THE BASIS 5 YEARS INSTEAD OF 3. BUT THE EXPERT I SPOKE WITH SAID SPIKING IS A MYTH - AND DOESN'T CONTRIBUTE IN ANY MEANINGFUL WAY TO THE PROBLEM. DAVE LANG: ON THE PART OF PUBLIC EMPLOYEES - PERCEPTION ISSUES -SOME IN THE PUBLIC THINK EVERYONE HAS $100,000 PENSION - EVERYONE IS GAMING THE SYSTEM. WHY NOT SEIZE THAT ISSUE AND DO SOME SELF-POLICING? 8: SENATOR BRADLEY: CURRENTLY, THE RETIREMENT SYSTEM BOARD HAS 14 MEMBERS INCLUDING TWO STATE EMPLOYEES, TWO TEACHERS, TWO FIREFIGHTERS AND TWO POLICE OFFICERS. HOUSE BILL 227 WOULD ELIMINATE 6 OF THOSE TRUSTEE POSITIONS, AND REDUCE THE BOARD FROM 14 MEMBERS TO 8. YOU'RE A SPONSOR OF THE BILL. WHY REDUCE THE REPRESENTATION OF THE PEOPLE THE SYSTEM WAS DESIGNED FOR? IF THAT CHANGE GOES THROUGH, PUBLIC EMPLOYEES COULD BE OUTVOTED BY LEGISLATORS, BUSINESS REP. 9: SENATOR BRAGDON SAID: "IT IS TIME FOR ELECTED OFFICIALS, EMPLOYERS, AND EMPLOYEES TO GET TO WORK TOGETHER, TO SOLVE THIS PROBLEM." NO EMPLOYEE REPRESENTATIVES AT THAT NEWS CONFERENCE. NH SCHOOL BOARD ASSOCIATION - 180 SCHOOL BOARDS ACROSS THE STATE - UNANIMOUSLY SUPPORTS THIS. BIA PRESIDENT JIM ROCHE CALLED THIS THIS IS A MULTI-BILLION DOLLAR PROBLEM THAT HANGS OVER THE HEAD OF EVERY TAX PAYER IN NH - THE BIA SUPPORTS "INCREASE RETIREMENT AGE FOR GROUP 2 RETIREMENT SYSTEM MEMBERS CHANGE THE MEMBERSHIP ON THE RETIREMENT BOARD TO MORE FAIRLY REPRESENT MANAGEMENT AND LABOR" OVER THE FOUR GROUPS - STATE EMPLOYEES, TEACHERS, POLICE AND FIRE - THE AVERAGE CONTRIBUTION WILL BE 19% IN 2012 AND 2013 11% OF THE 19% IS SHARED EQUALLY ON AVERAGE 8% IS THE COST OF INSUFFICIENT ACTUARIAL AND GAINSHARING OVER THE YEARS LITTLE CAN BE DONE EXCEPT TO PAY UP ESSENTIALLY, PUT A STAKE IN THE GROUND ON THE 3.5 BILLION - PAY IT OVER 30 YEARS THE COSTS THAT ARE CAUSING PAIN ARE PAST COSTS - HB1645 A FEW YEARS AGO FROM THE CHART OF RETIREMENT SYSTEM EMPLOYER CONTRIBUTION RATES SINCE 1970. PRETTY STUNNING VARIATION: 2010 AND 2011 - JUST UNDER 20% FOR POLICE AND 25% FOR FIRE - WHILE THE RECIPIENT KICKS IN JUST 9% 2010 AND 2011 - 11% FOR TEACHERS WHILE THE RECIPIENT KICKS IN 5% WIDE VARIATION IN PAST 40 YEARS IN EMPLOYER RATES: 1970 STATE PAID 2.85% FOR STATE EMPLOYEES - LOCAL GOVERNMENTS PAID 8.3% FOR POLICE AND FIRE AND 3.1% FOR TEACHERS DIPPED AS LOW AS 1% IN 1987 STATE EMPLOYEES - STAYED IN 2-3% RANGE THROUGH THE 90'S - THEN STARTED CLIMBING 4% IN 2002, 6% IN 2004, 9% IN 2008, 11% IN LAST TWO YEARS. TEACHERS RATES - LOCAL GOVERNMENTS PAID LESS THAN 3% FROM 1977 THROUGH 1995 - AND DIDN'T GET TO 5% UNTIL 2006. NO WONDER YOU'RE CATCHING UP. OF COURSE, 10.7% FOR LAST TWO YEARS…. PREDICTIONS? |
| Thanks/Goodbye Return to index of stories... |
THAT IS ALL THE TIME WE HAVE - OUR THANKS TO: SEN. JEB BRADLEY, DAVID LANG,aND STEVE NORTON I'M RICHARD AGER. SEE YOU NEXT TIME ON NH OUTLOOK. |
| Web Promo Return to index of stories... |
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| Key: Business / Industry Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 2/4/2011 HOST: Richard Ager Length: 25:00 Hello. I'm Richard Ager. Welcome to NH Outlook. More than 75,000 current and retired public employees rely on the New Hamsphire retirement system. But there are growing concerns that the system is underfunded- and without changes, could pose a huge burden for taxpayers in the near future. At a recent news conference, state legislators unveiled their proposals for reform. PRODUCER/REPORTER: NAME OF PARTICIPANTS:Pamela Brenner\Peterborough Town Administrator\Jan. 27, 2011, George Maglaras\Chair, Strafford County Commissioners Office, Sen. Peter Bragdon\ President, NH Senate, Sen. Jeb Bradley\Prime Sponsor, SB3, Steve Norton\Executive Director, Center for Public Policy Studies, David Lang\President, Professional Firefighters of NH |
| Key: Community Politics / Government Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 2/4/2011 HOST: Richard Ager Length: 25:00 Hello. I'm Richard Ager. Welcome to NH Outlook. More than 75,000 current and retired public employees rely on the New Hamsphire retirement system. But there are growing concerns that the system is underfunded- and without changes, could pose a huge burden for taxpayers in the near future. At a recent news conference, state legislators unveiled their proposals for reform. PRODUCER/REPORTER: NAME OF PARTICIPANTS:Pamela Brenner\Peterborough Town Administrator\Jan. 27, 2011, George Maglaras\Chair, Strafford County Commissioners Office, Sen. Peter Bragdon\ President, NH Senate, Sen. Jeb Bradley\Prime Sponsor, SB3, Steve Norton\Executive Director, Center for Public Policy Studies, David Lang\President, Professional Firefighters of NH |
| Key: Social Services Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 2/4/2011 HOST: Richard Ager Length: 25:00 Hello. I'm Richard Ager. Welcome to NH Outlook. More than 75,000 current and retired public employees rely on the New Hamsphire retirement system. But there are growing concerns that the system is underfunded- and without changes, could pose a huge burden for taxpayers in the near future. At a recent news conference, state legislators unveiled their proposals for reform. PRODUCER/REPORTER: NAME OF PARTICIPANTS:Pamela Brenner\Peterborough Town Administrator\Jan. 27, 2011, George Maglaras\Chair, Strafford County Commissioners Office, Sen. Peter Bragdon\ President, NH Senate, Sen. Jeb Bradley\Prime Sponsor, SB3, Steve Norton\Executive Director, Center for Public Policy Studies, David Lang\President, Professional Firefighters of NH |