April 23, 2008

UNPAID FOR PROMISES MADE BY POLITICIANS

I have finally gotten replies from the City of Memphis, the Shelby County Government and the MLGW concerning the unfunded liability for retiree health care and life insurance. The total unfunded liability is, "DRUM ROLL! ARE YOU SITTING DOWN"

$1.885 BILLION DOLLARS

POLITICAL DIVISION	UNFUNDED LIABILITY	NUMBER OF ACTIVE EMPLOYEES	RETIREES
City of Memphis	$823,000,000	6225	3235
MLGW	$709,000,000	2608	2493
Shelby County	$353,000,000	6669	1800
TOTAL	$1,885,000,000

When I looked at these numbers, I immediately noticed that the MLGW was the highes cost per retiree, the City of Memphis was next and Shelby County was the lowest. I am still studying the numbers and I do not have a full report from the City but I have attached the three reports for you, the readers, to study.

It seems to me, that in reading over the reports, we are being taken for a ride by the City and the MLGW. No surprise there. The County is apparently costing the taxpayers less per retiree. In looking at their plan, I did notice that the retirees' share of the cost depends on years of service at retirement (see page 24 of 39) whereas, at the City and the MLGW, the retriees' share of the cost stays the same regardless of the years of service. This is just another example of how the taxpayers are being taken to the cleaners by the City of Memphis and MLGW.

Any way you look at it, the obvious conclusion is that we are being left a huge future problem in funding these reckless promises made by the present and past politicians. We need to organize and plan for a solution to this problem. See the three reports which are attached.


Click here to see the Shelby County report on unfunded retiree health care promises

Click here to see how much the City of Memphis have promised their retirees in health care benefits but have not paid for

Click here to see the MLGW unfunded liability promises to their retirees