Theodore Lipscomb
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.

Press Releases by Theodore Lipscomb

Theodore Lipscomb

Abele Should Stand with Milwaukee County Residents and Help Shoulder the Burden of our Fiscal Challenges

"It's time for Abele to share the burden of Milwaukee County's fiscal challenges, like he promised."

Theodore Lipscomb

Lipscomb Hails Supervisors’ Adoption of Balanced Budget

Budget cuts spending, reduces tax levy, halves wheel tax

Theodore Lipscomb

Chairman Lipscomb Calls for Referendum on $60 Wheel Tax

Finance Committee unanimously recommends proposal to full board.

Theodore Lipscomb

Abele’s Budget Math Off by $2.5 Million

County Executive Chris Abele provided the County Board with an unbalanced budget on Monday, because he failed to apply his proposed fringe benefits increase to all the appropriate job classifications.

Theodore Lipscomb

Milwaukee County Board Kicks Off Public Meetings on 2017 Recommended Budget

MILWAUKEE – Board Chairman Theodore Lipscomb, Sr., has made special arrangements to provide County Executive Chris Abele with an opportunity to present the details of his 2017 Recommended Budget to the County Board of Supervisors on October 3, 2016, at 3:00pm. County Executive Abele will present his Recommended Budget to the Committee of the Whole […]

Theodore Lipscomb

Board Chairman Lipscomb and Parks Committee Chair Haas Announce 9/13/2016 Public Hearing on Pokemon Go and 2017 Parks Budget Request

Invite Public to Testify about Pokemon GO in the Park and Proposed Parking Meters on the Lakefront

See More Releases

Leave a Reply

Your email address will not be published.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