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BOLTON PARTNERS

Employee Benefits and Investment Consultants

Public Sector Pensions have been getting a lot of attention in the press, as many Governments are seeing their costs skyrocket while tax revenues are at best stagnant.  Bolton Partners has been working with public sector plans for 30 years. In addition to serving as the valuation actuary, we also serve as the advisors to the unions of several large pension plans including those of the City of Baltimore and San Jose California.

 

It’s about to become more exciting over the next few years with the advent of a new GASB 27 accounting standard.  The new standard is much more than a “tweak” of the old standard. For cost sharing employers it means the same kind of disclosure as agent plans. For agent plans, it is changing the focus of the standard from budgeting and generational equity to determining liability. That means different things to different plans. For everyone, it means pension plans will have (an often large) liability on the employer’s statement of net financial position with uncertainty as to what impact that might have on bond ratings. Finally, if you are a typical single employer (agent plan),  governments will need to take a fresh look at their plan contribution policies. They may find that in doing so their plans are less affordable than they thought.

 

Our actuaries have already been modeling the impact of the new standard on pension plans. We are closely monitoring what changes governments around the country are considering for their pension plans, and we are also active on several actuarial committees that are looking at public sector pension issues.

GASB 27

 

Baltimore Office

 

 

 

 

 

 

Boca Raton Office

 

7279 Panache Way

Boca Raton, FL 33433

 

 

 

 

Atlanta Office

 

 

 

 

 

675 Seminole Avenue, NE

Suite 310

Atlanta, Georgia 30307

36 S. Charles Street

Suite 1000

Baltimore, MD 21201

 

 

9000 Midlantic Drive

Suite 100

Mt. Laurel, NJ 08054

 

 

 

 

Washington Office

 

1615 L Street, NW

Suite 510

Washington, DC 20036

 

 

 

 

 

 

Copyright (c) 2008 - 2016 Bolton Partners, Inc. All rights reserved.

        1-800-394-0263   info@boltonpartners.com

 

 

 

 

325 Sentry Parkway

Building 5 West, Suite 200

Blue Bell, PA 19422

 

 

 

 

Denver Office

 

3773 Cherry Creek North Drive

Suite 575

Denver, CO 80209

 

Philadelphia Offices