Institute readers who have followed our pension work over the years know that in 2010 the City of Pittsburgh pledged a thirty year stream of parking tax revenue to bolster its sagging pension funds. That stream is above and beyond what the City puts in as its minimum obligation under Act 205. This year the number totals around $64 million and next year is projected to increase to $70 million (see page 131 in the City’s budget).
Part of what was discussed at yesterday’s meeting of the City’s pension fund board was the City’s assumption of how much their investments could be expected to earn. Rate of return was lowered in 2014 after there was a great deal of reluctance to do so in 2012 but the former Mayor eventually agreed to it on his way out of office.
While the topic was discussed the plan looks like it will be held off until 2018 due to the late hour of the budget process. Some numbers were presented to show what shaving a 1/4 point or a 1/2 point off of the rate of return would cost in terms of dollars that would have to be put in to the fund.
