Sup. Theodore Lipscomb, Sr.
Press Release

New $17 Million Pension Administration Error Disclosed

Milwaukee County paid $11 million in lump sum pension payments in November to retirees and their beneficiaries to correct for underpayments.

By - Dec 1st, 2016 02:04 pm

MILWAUKEE – Milwaukee County paid $11 million in lump sum pension payments in November to retirees and their beneficiaries to correct for underpayments made to County employees who retired between 2001 and 2008. Future payouts are expected to cost an additional $6 million.

Although a correction was made in 2009 to ensure accurate pension payments, the 2001-2008 underpayments were not addressed until November 2016, which resulted in dramatically larger lump sum payments due to interest costs that accumulated at a rate of 8% annually.

County Board Chairman Theodore Lipscomb, Sr., has requested an analysis from the County Comptroller of the additional costs that were incurred as a result of the County Executive’s failure to act sooner to implement an administrative fix of the problem.

Chairman Lipscomb made the following statement.

“Has the County Executive known about these errors since he took office in 2011?  The amount the County owes grew every year by 8%, saddling us with dramatically larger costs than what we would have paid if the problem had been corrected sooner.

“I was disappointed to learn that County Executive Abele waited almost a month after receiving an actuarial report before informing the Board that in just four days, $11 million in lump sum payments would be paid out to retirees or their beneficiaries.

“By waiting nearly a month to inform the Board of underpayments to retirees, the County Executive denied the Board the opportunity to discuss the $17 million error during the budget process, and kept the public in the dark.

“The lack of previous disclosure and transparency from the County Executive and staff under his authority in the Employee Retirement System is disappointing. I have urged the Director of Retirement Plan Services to hold their meetings at a location where proceedings can be livestreamed for the public and recorded.”

The County Board will meet to discuss the issue in committee meetings scheduled for December 2 and December 8. Supervisors on the Personnel Committee and Finance and Audit Committee expect to receive additional explanation about the extent of the errors and delayed response in addressing them.

Mentioned in This Press Release

Recent Press Releases by Sup. Theodore Lipscomb, Sr.

Supervisors Take Action to Block Illegal Raises

The Abele administration has kept hidden the total amount of the raises it unlawfully awarded.

County Executive Abele Granted Unlawful Raises

Ruling affirms Milwaukee County Board of Supervisors authority over compensation of county employees

County to Participate in Property Assessed Clean Energy Program

Financing Program Reduces Cost of Energy and Water Saving Upgrades

Leave a Reply

Your email address will not be published. Required fields are marked *