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RetirementfundingneededbyLCPS
Tuesday,May.8,2012byLauraPeters|36comments|Emailthisstory
2 LoudounCountyPublicSchoolswillneed$3.5millionbyJuneinordertofundretirement benefitsbyJune.TheLoudounCountyBoardofSupervisorsMay2decidedtoputtheSchool BoardsrequestforstatefundingonholduntilVirginiaGov.BobMcDonnell(R)signsthe budgetbill,settohappeninthemiddleofMay. BudgetdiscussionscontinuedduringtheSchoolBoardsMay8meeting.LCPSstaffrequested theboardtotakethe$3.5millionofthethefiscal2012savingsstemmingfromutilitiesand otheraccountstofundretirementbenefits.Accordingtostaff,oneconsequenceofthedelayin approvalofstatefundingbysupervisorsistheinabilitytoissuecontractspriortothedeadline forUniformHiringinVirginia.Withoutfullfundingofthebudget,staffreportssay, contractscannotbeissuednotingcompensationbasedon20122013salaryscales. NedWaterhouse,deputysuperintendentofLCPS,saiditwascriticaltomakeadecisionnow withthelooming$7.9millioninthehandsofthestate. AnotherissueLCPSfacesbyJuly,isthefundingoftheschoolsotherpostemployeebenefits (OPEB),whichwaspreviouslyfundedbythecountyintheirbudget.LCPShasreceivedan appropriationof$14millionfromthecountynowschoolsareliableforfundingOPEB. AccordingtoLeighBurden,assistantsuperintendentbusinessandfinanceforLCPS,a potentialsurplusof$12.2millionwith$10millionofthathasbeensetasideand appropriatedtofundfiscal2013leavingaremainderof$2.2million. Wehavealsobeencarefullymonitoringotheraccountsandshouldhaveafiscal2012third quarterreviewreadysoon.However,wedoknownowthatduetotheextremelywarmwinter, weareexpectingasurplusinutilityaccountsof$1.8million,Burdensaid.Thesefunds, coupledwiththeaforementioned$2.2milliontotal$4million.Staffisrecommendingthata paymentof$3.5millionbemadetotheOPEBfundinJune2012,forfiscal2013.Thiswould meanatotalof$17.5millionwouldbepaidintotheOPEBfundforfiscal2013. KevinKeusters(BroadRun)saidLCPSwillbeusingfiscal2012fundingsinordertopayfor OPEB,inordertonotaskforanappropriation. MyconcernisnotwantingtomakearetrobudgetdecisionwithoutconsultingtheBoardof Supervisors.Iknowwehavetheauthoritytodothat,ChairmanEricHornberger(Ashburn) said,requestingtheSchoolBoardwaitonadecisionduringthemeetinganddiscussasa jointboard.IdlikeanopportunitytoconsulttheBoardofSupervisors,tosimplysayheres ourintention. Wecaneitherfunditwithfundswehavealreadyidentifiedorwecangobackintoourbudget tofind$3.5millioninreductions,Burdenresponded. KeustersalsopointedoutthattherewasntahugeurgencyinmakingthevoteonMay8. Theboardvotedunanimouslytoexpressitsintentiontofundthe$3.5millionfiscal2013 OPEBliabilityfromfiscal2012savingsderivedfromutilitiesandotheraccounts.Withthat, budgettransferswillbeprocessedandthepaymentwillbemadeinJune2012.TheSchool Boardalsoaddedanamendmentintheeventthatifstatefundingisnotapprovedthatthe ChairmanoftheSchoolBoardwillsendalettertotheBoardofSupervisorstoaddthe remaindertothefiscal2013budget. TheBoardofSupervisorsissettomakeadecisionMay15onthestatefundingtobeallocated toLCPS.
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Comments
Tue,May15at10:18AMbyPayupslackers|Reportthiscomment
HowsthatretirementsystemworkinginCaliforniaansIllnois
Sat,May12at03:57PMbyWasteOfMoney|Reportthiscomment
TheBabyBoomersaregoingtobethecauseofBankruptcyforAmerica.
Sat,May12at07:33AMbydunce|Reportthiscomment
Didthestategiveteachersa5%raisetooffsettheircontributions?
Fri,May11at08:49PMbyEconomics|Reportthiscomment TheLoudounTimesMirror
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Sowhatstheplanhere? Educateourchildrensotheycanworkandwecanlevyan80%taxontheir earningsthroughfederal,state,local,VAT,sales,FICAandeveryothertax underthesun?Becausethatswherewereheaded.Wereabouttotipoverand looklikeGreece,folks. ThegovernmentsownnumbersDONOTlie: http://www.usdebtclock.org Ifyouseeadifferentscenariocoming,pleasetellme.Idliketobecomforted somehow,butImnotseeingANYalternativegiventheuglynumbersatthe linkabove.
Thu,May10at06:28PMbyLCOutsider|Reportthiscomment Taste ofLoudoun Future Leaders Senior Lifestyles Coming Soon HistoricDowntown Leesburg Coming Soon
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@economicsWelldangmeifyoushouldntpaytaxesonwhatyouearn.
Thu,May10at12:15AMbyDonny|Reportthiscomment
Imnotsoldondefinedbenefitpensions.Witha401K,YOUareinchargeof yourdestiny.SamewithanIRA.ItsaseparateaccountforYOU.Yournameis onit. Withapensionscheme,itsallpooledmoney.Astheorganizationgoes throughhardtimesandcantkeepcontributing,thenumbersstarttocrater. Whenthethingcollapsesasponzischemesalwaysdo,theemployeesonthe tailendgetscrewed.Itsfirstin,firstout.Thatsnogoodforlastout,even thoughtheyworkatthesameorganization.Fortyyearsisalongtimeto expectapensiontoholdandshenanigansnottostart.Plus,thepensionspay outaflatamounteverymonth,soyougetkilledbyinflation. JustlookatUSSteel,theAirlines,DetroitAutomotiveWorkers,Enron.All Broke.Theyhadtorelyonthecollectivebraintomakedecisionsabouttheir retirementandtheygotscrewed.Samewithsocialsecurity.Itsgoingbroke. YES,ITIS!www.usdebtclock.org Peopleneedtobeinchargeoftheirowndestinyandthiscollectivistmentality needstogo,becausefrankly,Icantrelyonanyonetomakesounddecisions. Toomanyscammersandpensionsarerightatthetop.Theyreallgoingbroke andhittingthetaxpayerupviathePBGCwhichisalsorunningoutoffunds. Thatsnotright.WhyamIsuddenlyresponsibleforeveryoneelse?Ihavemy ownfamilytotakecareof,andfortyyearsisalongtimetorelyonpeopletodo therightthingandnotscrewme. No,Iwantaseparate401KorIRAaccountinMYnameandunderMY
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control.
Wed,May09at08:50PMbyEconomics|Reportthiscomment
Scam,itsatravestythatprivatesectoremployeeswerethrowntothewolves likethat.Individuallymanagedaccountslike401(k)sviolateabasictenetof economics:specializationincreaseseconomicgains.Comparedtodefined benefitpensionplans,401(k)plansarevastlymoreexpensiveininvesting, administrationandothercosts.Thatswhytheaverageinvestormakesmuch lessthanthemarketreturn. Insteadofpoolingthemoneysoprofessionalinvestorscanmanagethemoney asisdoneindefinedbenefitplans,individualsaresuddenlyexpectedtobe expertsatinvestingtheirretirementmoneyindefinedcontributionplans. Moneythatcouldhavebeentakenascashwagestodayendsupinthepockets ofsecuritiesdealers,trusteesandotherswhoadministerandinvestthe money,insteadofthepocketsofretireeswhowouldspendthatmoneylocally.
Wed,May09at08:19PMby401(k)Scam|Reportthiscomment
averageprofessionteachers AnotherexampleofaGOPattempttoderailpubliceducators.
Wed,May09at07:07PMbyEconomics|Reportthiscomment
Didntthat5%getwaived?
Wed,May09at05:10PMbyjrosen|Reportthiscomment
Wellsaid,Economics!Nowwhoislistening?
Wed,May09at04:10PMbyEconomics|Reportthiscomment
Tiredofpayingfreightforahardworking,butaverageprofessionteachers. Mostotherprofessionalsfundtheirownpensions,sotherereallyisno
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/ 4/7
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disparityinpayforthisgroup.Atatimewhenmanyarestruggling,letthem payandhavetheemployerfund35%liketherestofus.
Wed,May09at03:51PMbyInjun|Reportthiscomment
Whatportion?Ithinkyouspeakwithforkedtongue
Wed,May09at03:41PMbyEconomics|Reportthiscomment
Apensionplanisthedirectresultofdeferredcompensationmoneythat employeeswouldhavebeenpaidascashsalarybutchoose,instead,tohave placedinthestateoperatedpensionfundwherethemoneycanbe professionallyinvested(atalowercostofmanagement)forthefuture. Youarefamiliarwiththeconceptofdeferredcompensationfromreading aboutthelatestmultimilliondollardealwithsomeprofessionalathlete.Asa meansofallowingtheirballclubtohaveenoughmoneytooperate,lowering theirowntaxobligationsandforotherbenefits,ballplayersoftendefer paymentofmoneytheyaretobepaidtoalaterdate.Inthemeantime,that moneyisinvestedfortheballplayersbenefitandthenpaidoveratthetime andinthemanneragreedtointhecontractbetweentheparties. Doesanyonebelievethat,inthecaseoftheballplayer,thedeferredmoney belongstotheclubownerratherthantheballplayer?Istheownersimply providingthismoneytotheathleteassomesortofgift?Ofcoursenot!The moneyissalarytobepaidtotheballplayer,deferredforreceiptatalaterdate. Thesameholdstrueforteachersandpublicsectorworkers.Ifthiswerenot true,aseriouscrimewouldbetakingplace:thegiftofpublicfundsratherthan paymentforservicesrendered. Teachersandpublicemployeesalreadypay100%intotheVRSfromtheir compensationpackage,butaportionofitisdeductedfromtheirpaychecks andaportionofitgoesdirectlytothepensionplan.Thedeferred compensationjustdoesnotshowupinpaychecksasalineitem,thesame waythathalfofSocialSecurityandMedicaretaxesdonotshowupon paychecks,butarestillpartoftotalcompensationtoeachworkerinthose plans. Inotherwords,sincetheworkersalreadycontribute100%ofthemoneygoing tothepensionplan,therealissueisachangeinaccounting.Theworkers salarygoesupandtheirtaxburdenincreases,whichinturn,reducescash wagesandreducestheavailabilityoffundstoflowbackintothelocal economy. Additionally,whatwasonceapretaxbenefitforbothemployeeAND employerandbyextensionyouthetaxpayerisnowtaxablewagesand subjecttoemployerpaidSocialSecurityandMedicaretaxes.Simplyput,by requiringpublicemployeesandteacherstofundtheVRSwithoutthebenefitof deferredcompensation,youhavesimplyaddedtothetaxtheCounty/schools arerequiredbylawtopayintoSocialSecurityandMedicare.Whoisgoingto havetopayforthat?You.
Wed,May09at02:28PMbyjoan.grand1@gmail.com|Reportthiscomment
Benefitssuchaspublicpensionsdidnotcausethefinancialdisastersoflate. Hulloisindeedatrollandchangesnamesfrequently.
Wed,May09at10:09AMbyHowmanysuperintendentsdoesittaketorunLCPS?|Reportthiscomment
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/
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SeemslikealotofsuperintendentswithinLCPS.Perhapsweshouldcutouta fewofthemsowecanaffordretirementbudget.
Wed,May09at09:12AMbyechyone|Reportthiscomment
WhywasntthisinHatricksbudgettotheBOS?
Wed,May09at09:04AMbywow!|Reportthiscomment
IswearidiotslikeHulloareplantedbyLoudountimesmirrortostirup drama..thereisnowaythesemanyidiotcanliveinonelocation.Getalife!
Wed,May09at08:31AMbyLoCoWonders|Reportthiscomment
Thatsbaloneythepublicsectoremployeesnowmakemorethantheprivate sectoremployees.Yourideasarefromthe20thcenturyandoutdated!
Wed,May09at06:54AMbyLiketheoak|Reportthiscomment
Hullo?Youmoveforwardwithcommentsthatassumeeveryoneshouldshare yoursituation.Public Sectoremployeesoftendedicateyearsofserviceovertimewithfixedsalaries, fewraises,nobonuses,andabenefitspackage.Iwouldsubmitthatofmostof thepublicsectoracquaintancesIknow,thebenefitspackageismore importantthanthesalary.Thetradeoffisthatthepublicsectoremployee tradesstabilityandbenefitsoveralongtermapproachversustheprivate sectoremployeewhocanreceivebonuses,stockoptions,etc.intheshort term.Inthelongrun,itallprobablyevensoutbutgovernmentsbenefit becausetheygetlongtermemployeesandtheemployerdoesnothaveto constantlyspendfundsontrainingnewpeople. Justlikeanydealmade,whenyoushakehandssignthecontractyoustick tothedealthatwasmade.Changingthingsupnowmidstreamcouldresultin legalchallenges.Itwouldbeliketheschoolboardobtainingemployeesby falsepretenses(offeringitintheadvertisedbenefitspackage,hiringthe employeewhocommitstoalongtermcareer,thenchangingthetermsofthe agreement). Maybeemployeesaredisposableinyourworld,butanorganizationisonlyas goodasthehumanresourcesittrainsandmaintainstakecareofyourpeople andtheywilltakecareofyou.
Wed,May09at05:10AMbyDonnaP.|Reportthiscomment
Whenisitenough?Theschoolsystemisaboondogglethesizeofmetro.Let umpayintotheirretirement,wedo!
Wed,May09at12:07AMbyloudounguy|Reportthiscomment
Wow,youreanidiot.
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GIVETHEMNOTHING.Theycanfundtheirownretirementliketherestof theworld.
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