Subject: RE: Interesting Articles on the Pension Liability Crisis
From: "Neil Callahan" <[email-masked]>
To: <[email-masked]>, "'Alexandra Stanton'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>
Cc: "'Devon Archer'" <[email-masked]>
Date: Sat, 16 Oct 2010 14:35:16 -0400

Exactly.  And the reality is they have nothing to lose.  

Many of the large Public plans are bankrupt (they are the walking dead) and
have no realistic prospects of recovery (unless they cut pension benefits,
higher taxes won't be passable), so they might as well give the HFs a shot
because if the HF funds go bust, they are only marginally worse off than
they are today.   And the reality is the HFs wont' go bust because they are
run by talented people who are incented to make it work and unfortunately
the Public plans are run by less talented people who have no meaningful
incentive to make it work (i.e., if the plan administrator fixes Ohio's
problem, she's not taking home a $100m check that year).

 

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Neil Callahan

Rosemont Seneca

401 Greenwich Street, Suite 400 | New York NY 10013 | 212-933-9965 |
212-796-4037

1010 Wisconsin Avenue, Suite 705 | Washington DC 20007 | 202-333-1880

917-945-9516 (mobile) 

866-749-8879  (fax) 

From: Arlene Busch [mailto:[email-masked]] 
Sent: Saturday, October 16, 2010 2:21 PM
To: Neil Callahan; Alexandra Stanton; Eric Schwerin; Hunter Biden
Cc: Devon Archer
Subject: Re: Interesting Articles on the Pension Liability Crisis

Thanks for the article below. I believe this is the reason many are reaching
out to HFs and PE funds. It's the only way they can attempt to reach their
actuarial numbers. 

Arlene Busch
202-333-1880
[email-masked] 

  _____  

From: "Neil Callahan" <[email-masked]> 

Date: Sat, 16 Oct 2010 14:09:14 -0400

To: <[email-masked]>; 'Arlene
Busch'<[email-masked]>; 'Eric
Schwerin'<[email-masked]>; 'Hunter
Biden'<[email-masked]>

ReplyTo: <[email-masked]> 

Cc: 'Devon Archer'<[email-masked]>

Subject: Interesting Articles on the Pension Liability Crisis

From this week's Economist.

55% of all Ohio's tax receipts will go to pay pension benefits . . . 

New Jersey's pension plan will run out in 8 years and is on a plan assuming
8% annual return.  If NJ changes their return assumptions which they should,
they will run out of money in 3-4 years.

 

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Neil Callahan

Rosemont Seneca

401 Greenwich Street, Suite 400 | New York NY 10013 | 212-933-9965 |
212-796-4037

1010 Wisconsin Avenue, Suite 705 | Washington DC 20007 | 202-333-1880

917-945-9516 (mobile) 

866-749-8879  (fax)