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Pension system lacks oversight

By BRUCE MURPHY
Milwaukee Journal Sentinel, May 4, 2003

Both the state and Milwaukee County pension plans were passed quickly with no estimate of the ultimate cost to taxpayers. A civic task force has suggested changes in the county system, but the state plan may need reform as well.

Legislators and other observers note three problems with the state system:

  • No outside oversight.

Supreme Court justices who vote on the constitutionality of pension laws were added to the plan in 1957, meaning they have a conflict of interest when ruling on pension cases. Legislators are also covered. "In a lot of states, they are very much considered citizen legislators, and they have their own plan through a private employer," said Andrew Geiger, policy analyst for the National Conference of State Legislatures.

Even lobbyists who might be expected to resist pension improvements could be compromised. Staff of the Wisconsin Alliance of Cities, Wisconsin Counties Association and the League of Wisconsin Municipalities are all covered by the state plan.

The task force that examined the county system recommended separating elected officials from the pension system, to remove personal temptation. Milwaukee Mayor John O. Norquist said the same should be done with state legislators, who he said view the pension as "free money."

  • No public disclosure.

While anyone can request the amount of pension a Milwaukee County employee could or does earn, the law bars such disclosure at the state level.

Norquist suggests a compromise: "I think for state elected officials this ought to be a public record. I don't think it should be public for other employees."

  • No estimate of total costs.

Laws with a monetary impact normally require a cost estimate by the Legislative Fiscal Bureau, but there is no price tag on pension bills.

Act 11 was passed without an actuary's analysis, and even when it was done (before Gov. Tommy G. Thompson signed the bill into law), it lacked a long-term estimate of the cost of benefit changes.

Should the Legislature require a 40-year cost estimate? "That would be a reasonable requirement," said former Assembly Speaker Scott Jensen (R-Town of Brookfield).


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