NY Municipalities Borrow Money from Pension Fund in Order to Contribute … to That Pension Fund

The New York Times writes:

Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.

And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.

… mmmmmh the sweet taste of utterly deranged insanity. You gotta love it … :)

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1 thought on “NY Municipalities Borrow Money from Pension Fund in Order to Contribute … to That Pension Fund”

  1. Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.

    And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.

    is this true??

    how does that work?? is is the pension fund loosing money due to poor stock performance??

    are they removing money still left in the fund to pay for some newly retireds and then hope for the pension fund stocks or what have you to go up again to replace the difference??

    is that what happens??

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