More Unfunded Retirement Liabilities in Area Government

After last week’s revelation about the huge unfunded health retirement obligations at the Lincoln Parish School Board (LPSB), we decided to take a look at other area governmental agencies and see what their audits reveal.

Here’s what we found:

Lincoln Parish Sheriff’s Office (LPSO)

The audit for the year ended 6/30/14 shows an unfunded actuarial accrued liability (UAAL) of $7.4 million. For the year, the amount contributed to the fund by the LPSO was 45% of the amount required to properly fund the account, the documents claim.

See here the pertinent documents from the audit.

Ouachita Parish Police Jury (OPPJ)

For the year ending 12/31/13, this agency’s audit shows the UAAL to be $12.36 million. For the year, the OPPJ contributed 55.8% of the amount necessary to fund future obligations.

See here the documents.

City of Monroe

Monroe’s UAAL for the year ended was $47.2 million as of 4/30/14. During that year, the funding level was at 45%.

See here the documents.

These liabilities are for retiree health care costs only, and don’t include any pension liabilities.

To be sure, these agencies are meeting current obligations. But when you project future costs that reflect turnover rate, retirement rate, health care cost trend rates, mortality rates, and investment return assumptions, none are properly preparing for the future.

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4 Responses to “More Unfunded Retirement Liabilities in Area Government”

  1. PlanWhatPlan Says:

    A lot of major private employers no longer provide any health coverage for retirees. They learned a lesson the hard way: don’t make promises (or incur debts) when it is impossible to know what they are going to cost to keep at some distant time in the future.
    Government has pretended to be immune from this for some time; now no longer.
    Tell us, Lincoln officials: why is local government paying better benefits than industry, and where’s the money coming from?

  2. Donald Maroon Fouler Says:

    The Educated Elite have a journ-0-list of their own. It has resulted in the current situation. If you have never known a government employee on an intimate personal basis you have no clue about what I speak.

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