5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

MobileWebsite|Login|Register

StaffDirectory|Advertise|Subscribe|AboutUs AdvancedSearch SEARCH

News

Opinions Sports

Entertainment Blogs

Video

Classifieds

Jobs RealEstate Advertise

RetirementfundingneededbyLCPS
Tuesday,May.8,2012byLauraPeters|36comments|Emailthisstory

2 LoudounCountyPublicSchoolswillneed$3.5millionbyJuneinordertofundretirement benefitsbyJune.TheLoudounCountyBoardofSupervisorsMay2decidedtoputtheSchool BoardsrequestforstatefundingonholduntilVirginiaGov.BobMcDonnell(R)signsthe budgetbill,settohappeninthemiddleofMay. BudgetdiscussionscontinuedduringtheSchoolBoardsMay8meeting.LCPSstaffrequested theboardtotakethe$3.5millionofthethefiscal2012savingsstemmingfromutilitiesand otheraccountstofundretirementbenefits.Accordingtostaff,oneconsequenceofthedelayin approvalofstatefundingbysupervisorsistheinabilitytoissuecontractspriortothedeadline forUniformHiringinVirginia.Withoutfullfundingofthebudget,staffreportssay, contractscannotbeissuednotingcompensationbasedon20122013salaryscales. NedWaterhouse,deputysuperintendentofLCPS,saiditwascriticaltomakeadecisionnow withthelooming$7.9millioninthehandsofthestate. AnotherissueLCPSfacesbyJuly,isthefundingoftheschoolsotherpostemployeebenefits (OPEB),whichwaspreviouslyfundedbythecountyintheirbudget.LCPShasreceivedan appropriationof$14millionfromthecountynowschoolsareliableforfundingOPEB. AccordingtoLeighBurden,assistantsuperintendentbusinessandfinanceforLCPS,a potentialsurplusof$12.2millionwith$10millionofthathasbeensetasideand appropriatedtofundfiscal2013leavingaremainderof$2.2million. Wehavealsobeencarefullymonitoringotheraccountsandshouldhaveafiscal2012third quarterreviewreadysoon.However,wedoknownowthatduetotheextremelywarmwinter, weareexpectingasurplusinutilityaccountsof$1.8million,Burdensaid.Thesefunds, coupledwiththeaforementioned$2.2milliontotal$4million.Staffisrecommendingthata paymentof$3.5millionbemadetotheOPEBfundinJune2012,forfiscal2013.Thiswould meanatotalof$17.5millionwouldbepaidintotheOPEBfundforfiscal2013. KevinKeusters(BroadRun)saidLCPSwillbeusingfiscal2012fundingsinordertopayfor OPEB,inordertonotaskforanappropriation. MyconcernisnotwantingtomakearetrobudgetdecisionwithoutconsultingtheBoardof Supervisors.Iknowwehavetheauthoritytodothat,ChairmanEricHornberger(Ashburn) said,requestingtheSchoolBoardwaitonadecisionduringthemeetinganddiscussasa jointboard.IdlikeanopportunitytoconsulttheBoardofSupervisors,tosimplysayheres ourintention. Wecaneitherfunditwithfundswehavealreadyidentifiedorwecangobackintoourbudget tofind$3.5millioninreductions,Burdenresponded. KeustersalsopointedoutthattherewasntahugeurgencyinmakingthevoteonMay8. Theboardvotedunanimouslytoexpressitsintentiontofundthe$3.5millionfiscal2013 OPEBliabilityfromfiscal2012savingsderivedfromutilitiesandotheraccounts.Withthat, budgettransferswillbeprocessedandthepaymentwillbemadeinJune2012.TheSchool Boardalsoaddedanamendmentintheeventthatifstatefundingisnotapprovedthatthe ChairmanoftheSchoolBoardwillsendalettertotheBoardofSupervisorstoaddthe remaindertothefiscal2013budget. TheBoardofSupervisorsissettomakeadecisionMay15onthestatefundingtobeallocated toLCPS.
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/

MostPopularinNews
Wednesday,May.16|4466views

StoneBridgenamedTop10schoolby U.S.News
Tuesday,May.15|3594views

AtasteofCarolinainLoudoun
Monday,May.14|3489views

ABCbustsretailersforsellingalcohol, tobaccotominors
Tuesday,May.15|3388views

Supervisorsapprove$7.9million increaseforschools
Tuesday,May.15|3290views

DelgaudiosaysObamaassaulting traditionalmarriage

Stay Connected

FollowUs onTwitter News|Sports

LikeUs onFacebook News&Sports

Subscribe viaRSS News|Sports

JoinOur EmailList Signupfor weeklyupdates

1/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

Comments
Tue,May15at10:18AMbyPayupslackers|Reportthiscomment

HowsthatretirementsystemworkinginCaliforniaansIllnois
Sat,May12at03:57PMbyWasteOfMoney|Reportthiscomment

TheBabyBoomersaregoingtobethecauseofBankruptcyforAmerica.
Sat,May12at07:33AMbydunce|Reportthiscomment

Didthestategiveteachersa5%raisetooffsettheircontributions?
Fri,May11at08:49PMbyEconomics|Reportthiscomment TheLoudounTimesMirror

wac:@economicsWelldangmeifyoushouldntpaytaxesonwhatyouearn. UhdidanyonesayyouSHOULDNTpaytaxesonwhatyouearn? ThepointyoumissedisthattheCountyisnowonthehookfortaxesthatit previouslyDIDNOThavetopaybymakinglegalpretaxcontributionson behalfoftheemployee. Thatsnotsavinganyonemoney.

Fri,May11at06:13AMbyYoungergeneration|Reportthiscomment Weekly HomesGuide 2011Guide toLoudoun Holiday GiftGuide isaninteractive,digitalreplica oftheprintednewspaper. Opentheeeditionnow.

Viewourotherprintpublicationsavailableonline.

DonnyThewaytheBoomershaverunthecountry,youdthinkthatwasthe plan.Therearestilltoomanyofthemaround,sowekeepthelowtaxesfor now.Oncethatvotingblocisnomore,theneveryoneelsewillbeforcedto dealwiththeveryrealconsequencesof30+yearsofdeficitspending.

Thu,May10at07:45PMbyDonny|Reportthiscomment

Healthand Wellness

Bridal Guide

HistoricFrederick Maryland

Sowhatstheplanhere? Educateourchildrensotheycanworkandwecanlevyan80%taxontheir earningsthroughfederal,state,local,VAT,sales,FICAandeveryothertax underthesun?Becausethatswherewereheaded.Wereabouttotipoverand looklikeGreece,folks. ThegovernmentsownnumbersDONOTlie: http://www.usdebtclock.org Ifyouseeadifferentscenariocoming,pleasetellme.Idliketobecomforted somehow,butImnotseeingANYalternativegiventheuglynumbersatthe linkabove.
Thu,May10at06:28PMbyLCOutsider|Reportthiscomment Taste ofLoudoun Future Leaders Senior Lifestyles Coming Soon HistoricDowntown Leesburg Coming Soon

NorthernVAJobOpenings
MoreNorthernVAJobs

@BusinessManNicepost,butyouforgotafewdisrespectful,enabled,rude, andungrateful.Guesstheapplesdontfallfromtheirtrees,especiallyinthis county.Toobadthattheyaretheminority,becausetherearemanyexceptions tothat.

Thu,May10at02:44PMbyBusinessMan|Reportthiscomment

www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/

2/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

Thisisfunny,Iknewthisarticlewouldbringoutthewitcheswarlocksand trollsofthewearegoingbrokecrowd.Idobelieveinmoreindividualsystems thatallowyoutopickthegambleyouwanttotakeonyourretirement,but, dealsweremadewhentheseteacherswhosignedontotrytoeducateyourill tempered,spoiled,snotnoseoffspring,sostanduptothedealforthosethat paidtheirdues.Nextyouvermenwillbecomingafterretiredmilitarypersons too.

Thu,May10at10:02AMbyLoCoWonders|Reportthiscomment

@LovesTeaching Benefitssuchaspublicpensionsdidnotcausethefinancialdisastersoflate. Thekeyis:oflate. Justwait.Thereisnowaystatesandcitiescanprovidethebenefitsthathave beenpromised.JustlikethemortgagefiascoyouKNOWthisisntgoingto endwell.

Thu,May10at09:17AMbyCursedSeedofCain|Reportthiscomment

ToobadtheycantfobofftheircommittmentstothePensionBenefit GuaranteeCorporationlikethelargeprivatesectorconcernsthatspenttheir employeesmoney.

Thu,May10at05:58AMbyCommonSense|Reportthiscomment

Pensionsshouldnotexist.Theyareadrainonexistingfundsforformer performance.Itsanunsustainablesystemwithpeoplelivingwellbeyondthe agewhentheyretire.Imagineateacherworkingfromage25toage55. Retiringatage55andlivinguntilage85.Thats60yearsofincome,withhalf ofitbeingpaidfornowork.ThisiswhyGeneralMotorswentbankrupt. Theonlysustainableretirementplan,istopayintoaplanwhileyouwork. Whenyouretire,paymentsstopandyoustartlivingonthemoneyyouvesaved withnofutureimpactoncurrenttaxpayerfundingofthesystem.

Thu,May10at05:28AMbywac|Reportthiscomment

@economicsWelldangmeifyoushouldntpaytaxesonwhatyouearn.
Thu,May10at12:15AMbyDonny|Reportthiscomment

Imnotsoldondefinedbenefitpensions.Witha401K,YOUareinchargeof yourdestiny.SamewithanIRA.ItsaseparateaccountforYOU.Yournameis onit. Withapensionscheme,itsallpooledmoney.Astheorganizationgoes throughhardtimesandcantkeepcontributing,thenumbersstarttocrater. Whenthethingcollapsesasponzischemesalwaysdo,theemployeesonthe tailendgetscrewed.Itsfirstin,firstout.Thatsnogoodforlastout,even thoughtheyworkatthesameorganization.Fortyyearsisalongtimeto expectapensiontoholdandshenanigansnottostart.Plus,thepensionspay outaflatamounteverymonth,soyougetkilledbyinflation. JustlookatUSSteel,theAirlines,DetroitAutomotiveWorkers,Enron.All Broke.Theyhadtorelyonthecollectivebraintomakedecisionsabouttheir retirementandtheygotscrewed.Samewithsocialsecurity.Itsgoingbroke. YES,ITIS!www.usdebtclock.org Peopleneedtobeinchargeoftheirowndestinyandthiscollectivistmentality needstogo,becausefrankly,Icantrelyonanyonetomakesounddecisions. Toomanyscammersandpensionsarerightatthetop.Theyreallgoingbroke andhittingthetaxpayerupviathePBGCwhichisalsorunningoutoffunds. Thatsnotright.WhyamIsuddenlyresponsibleforeveryoneelse?Ihavemy ownfamilytotakecareof,andfortyyearsisalongtimetorelyonpeopletodo therightthingandnotscrewme. No,Iwantaseparate401KorIRAaccountinMYnameandunderMY
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/ 3/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

control.
Wed,May09at08:50PMbyEconomics|Reportthiscomment

Scam,itsatravestythatprivatesectoremployeeswerethrowntothewolves likethat.Individuallymanagedaccountslike401(k)sviolateabasictenetof economics:specializationincreaseseconomicgains.Comparedtodefined benefitpensionplans,401(k)plansarevastlymoreexpensiveininvesting, administrationandothercosts.Thatswhytheaverageinvestormakesmuch lessthanthemarketreturn. Insteadofpoolingthemoneysoprofessionalinvestorscanmanagethemoney asisdoneindefinedbenefitplans,individualsaresuddenlyexpectedtobe expertsatinvestingtheirretirementmoneyindefinedcontributionplans. Moneythatcouldhavebeentakenascashwagestodayendsupinthepockets ofsecuritiesdealers,trusteesandotherswhoadministerandinvestthe money,insteadofthepocketsofretireeswhowouldspendthatmoneylocally.
Wed,May09at08:19PMby401(k)Scam|Reportthiscomment

Correction:Mostprofessionsthesedaysdonthavepensions.Wegettogo tothewhitecollarequivalentofLasVegasandrollthediceonWallSt.to fundourretirement.Thosethathaveanydefinedbenefitcompensation(let alonehealthcarebenefits)waitinginretirementshouldbethankful,evenif theyhavetokickinasmallpercentage.

Wed,May09at08:16PMbylcpsteacher|Reportthiscomment

Peopledontrealizethatifteachersweretofundtheirretirements,LCPSwould notbematchingthecontributions.Everyonekeepssayinglettheteachers fundtheirownretirement,buthowmanyofyouhave401ksthatarematched byyouremployer?Oratleastmatchedpartially?LCPScontributingtotheVRS systemisthepublicsectorsversionofmatching.

Wed,May09at07:48PMbyLovesTeaching|Reportthiscomment

averageprofessionteachers AnotherexampleofaGOPattempttoderailpubliceducators.
Wed,May09at07:07PMbyEconomics|Reportthiscomment

The5%wasnotwaived.Itwaspassedfromtheemployercontributingon behalfoftheemployee(pretax)directlytotheemployee,whereitbecomes documentedsalaryandsubjecttoSocialSecurityandMedicaretaxes.Both employeeANDemployermustpaythosetaxes.

Wed,May09at06:55PMbywac|Reportthiscomment

Didntthat5%getwaived?
Wed,May09at05:10PMbyjrosen|Reportthiscomment

Wellsaid,Economics!Nowwhoislistening?
Wed,May09at04:10PMbyEconomics|Reportthiscomment

Whatportion?Clearlyyouveforgottenaboutthe5%oftheemployeessalary thatthelawmandatesbeinvestedintheVRSandareignoringanyadditional contributionstheemployeechoosestomake.

Wed,May09at04:00PMbyFairShare|Reportthiscomment

Tiredofpayingfreightforahardworking,butaverageprofessionteachers. Mostotherprofessionalsfundtheirownpensions,sotherereallyisno
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/ 4/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

disparityinpayforthisgroup.Atatimewhenmanyarestruggling,letthem payandhavetheemployerfund35%liketherestofus.
Wed,May09at03:51PMbyInjun|Reportthiscomment

Whatportion?Ithinkyouspeakwithforkedtongue
Wed,May09at03:41PMbyEconomics|Reportthiscomment

Apensionplanisthedirectresultofdeferredcompensationmoneythat employeeswouldhavebeenpaidascashsalarybutchoose,instead,tohave placedinthestateoperatedpensionfundwherethemoneycanbe professionallyinvested(atalowercostofmanagement)forthefuture. Youarefamiliarwiththeconceptofdeferredcompensationfromreading aboutthelatestmultimilliondollardealwithsomeprofessionalathlete.Asa meansofallowingtheirballclubtohaveenoughmoneytooperate,lowering theirowntaxobligationsandforotherbenefits,ballplayersoftendefer paymentofmoneytheyaretobepaidtoalaterdate.Inthemeantime,that moneyisinvestedfortheballplayersbenefitandthenpaidoveratthetime andinthemanneragreedtointhecontractbetweentheparties. Doesanyonebelievethat,inthecaseoftheballplayer,thedeferredmoney belongstotheclubownerratherthantheballplayer?Istheownersimply providingthismoneytotheathleteassomesortofgift?Ofcoursenot!The moneyissalarytobepaidtotheballplayer,deferredforreceiptatalaterdate. Thesameholdstrueforteachersandpublicsectorworkers.Ifthiswerenot true,aseriouscrimewouldbetakingplace:thegiftofpublicfundsratherthan paymentforservicesrendered. Teachersandpublicemployeesalreadypay100%intotheVRSfromtheir compensationpackage,butaportionofitisdeductedfromtheirpaychecks andaportionofitgoesdirectlytothepensionplan.Thedeferred compensationjustdoesnotshowupinpaychecksasalineitem,thesame waythathalfofSocialSecurityandMedicaretaxesdonotshowupon paychecks,butarestillpartoftotalcompensationtoeachworkerinthose plans. Inotherwords,sincetheworkersalreadycontribute100%ofthemoneygoing tothepensionplan,therealissueisachangeinaccounting.Theworkers salarygoesupandtheirtaxburdenincreases,whichinturn,reducescash wagesandreducestheavailabilityoffundstoflowbackintothelocal economy. Additionally,whatwasonceapretaxbenefitforbothemployeeAND employerandbyextensionyouthetaxpayerisnowtaxablewagesand subjecttoemployerpaidSocialSecurityandMedicaretaxes.Simplyput,by requiringpublicemployeesandteacherstofundtheVRSwithoutthebenefitof deferredcompensation,youhavesimplyaddedtothetaxtheCounty/schools arerequiredbylawtopayintoSocialSecurityandMedicare.Whoisgoingto havetopayforthat?You.
Wed,May09at02:28PMbyjoan.grand1@gmail.com|Reportthiscomment

Cuttheschoolsbudgettomakeupthedifference.ItsHatTricksstupidityand threatsthatkeepincreasinghebudgetevenaftertheBOSandtheLCPShave alreadyagreedto. Toolate! Cutthebudgetintheadministrationareaandgetridofthehigherpaid Broadlandslackies!

Wed,May09at10:13AMbyLovesTeaching|Reportthiscomment

Benefitssuchaspublicpensionsdidnotcausethefinancialdisastersoflate. Hulloisindeedatrollandchangesnamesfrequently.
Wed,May09at10:09AMbyHowmanysuperintendentsdoesittaketorunLCPS?|Reportthiscomment

www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/

5/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

SeemslikealotofsuperintendentswithinLCPS.Perhapsweshouldcutouta fewofthemsowecanaffordretirementbudget.
Wed,May09at09:12AMbyechyone|Reportthiscomment

WhywasntthisinHatricksbudgettotheBOS?
Wed,May09at09:04AMbywow!|Reportthiscomment

IswearidiotslikeHulloareplantedbyLoudountimesmirrortostirup drama..thereisnowaythesemanyidiotcanliveinonelocation.Getalife!
Wed,May09at08:31AMbyLoCoWonders|Reportthiscomment

Thesizeandtimingofretirementplancontributionsareknownwellin advanceandare(orshouldbe)includedintheannualoperatingbudget. Thatshowitworksintherealworld,notinthebizaroworldofpublic finance.Whatkindsofgamesarebeingplayedhere?LoCoWonders.

Wed,May09at07:00AMbyfundyourown|Reportthiscomment

Thatsbaloneythepublicsectoremployeesnowmakemorethantheprivate sectoremployees.Yourideasarefromthe20thcenturyandoutdated!
Wed,May09at06:54AMbyLiketheoak|Reportthiscomment

Hullo?Youmoveforwardwithcommentsthatassumeeveryoneshouldshare yoursituation.Public Sectoremployeesoftendedicateyearsofserviceovertimewithfixedsalaries, fewraises,nobonuses,andabenefitspackage.Iwouldsubmitthatofmostof thepublicsectoracquaintancesIknow,thebenefitspackageismore importantthanthesalary.Thetradeoffisthatthepublicsectoremployee tradesstabilityandbenefitsoveralongtermapproachversustheprivate sectoremployeewhocanreceivebonuses,stockoptions,etc.intheshort term.Inthelongrun,itallprobablyevensoutbutgovernmentsbenefit becausetheygetlongtermemployeesandtheemployerdoesnothaveto constantlyspendfundsontrainingnewpeople. Justlikeanydealmade,whenyoushakehandssignthecontractyoustick tothedealthatwasmade.Changingthingsupnowmidstreamcouldresultin legalchallenges.Itwouldbeliketheschoolboardobtainingemployeesby falsepretenses(offeringitintheadvertisedbenefitspackage,hiringthe employeewhocommitstoalongtermcareer,thenchangingthetermsofthe agreement). Maybeemployeesaredisposableinyourworld,butanorganizationisonlyas goodasthehumanresourcesittrainsandmaintainstakecareofyourpeople andtheywilltakecareofyou.
Wed,May09at05:10AMbyDonnaP.|Reportthiscomment

Theysuredidwaittothelastminutetogetthisfunding.Retirementbenefits areprenegotiated,theworkerswantingthesebenefitsaredoingtheir9to5 jobslikemostpeopleandareexpectingtheirretirementtocomeaboutas promisedbytheiremployer.JustlikeallofuswhoworkandpayintoSocial Security,weexpectthemoneytobethere.ItisunfortunatetheFederal GovernmentstoletheSocialSecuritymoneyandputinIOUs.

Wed,May09at05:09AMbytoomuch|Reportthiscomment

Whenisitenough?Theschoolsystemisaboondogglethesizeofmetro.Let umpayintotheirretirement,wedo!
Wed,May09at12:07AMbyloudounguy|Reportthiscomment

Wow,youreanidiot.
www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/ 6/7

5/17/12

Retirement funding needed by LCPS | LoudounTimes.com

EvenWalmarthasaretirementplanthattheypayintoespeciallyforthe whitecollarjobslikemanagers.Themoneythisarticleistalkingaboutis mandatedbynewaccountingpracticestocoverFUTUREretirementliabilities otherthanpensions.Basicallytheyhavetoprefundtheobligations (probablymostlyhealthinsurance)sothemoneywillbetherewhenpeople retireinsteadofwaitinguntiltheyretiretofindthemoney.

Tue,May08at10:53PMbyHullo?|Reportthiscomment

GIVETHEMNOTHING.Theycanfundtheirownretirementliketherestof theworld.

Commentsexpressonlytheviewsoftheauthoranddonotnecessarilyreflecttheviewsofthiswebsiteorany associatedpersonorentity.Anyuserwhobelievesamessageisobjectionablecancontactusat moderator@timespapers.com.

Postacomment
Anyonecanpostacomment.Registrationisnotrequired. Bysubmittingacomment,youagreetoourTermsofService.

Name(required):

Email(required):

Remembermypersonalinformation Proveyouarehumanandnotaspambot: Actionsspeaklouderthan_____.Fillintheblank.

Submit

Byusingthissite,youagreetotheTermsofService. News|Opinions|Sports|Entertainment|Blogs|Video|Classifieds|ContactUs|WorkforUs Copyright2011LoudounTimesMirror,aTimesCommunityMedianewspaper. FauquierVANews|CulpeperVANews|GainesvilleVANews|VirginiaNewspapers

www.loudountimes.com/index.php/news/article/retirement_funding_needed_by_lcps123/

7/7