The Unfunded Pension Liability
“Mayors don’t spend a minute thinking about the unfunded pension liabilities,” said a former mayor about Everett’s unfunded pension liability.
As of this writing, Everett’s unfunded pension liability stands at $118 million, a tidy sum of money even in a smaller city allegedly awash in casino dollars.
“It is simply paid out of operating funds as part of the budget every year. There’s nothing to worry about,” added the former mayor.
Is there nothing to worry about or not?
We wonder how the city’s Chief Financial Officer Eric Demas and his boss the mayor might consider a $118 million owe by the city as having no meaning on its financial well- being or otherwise?
We wonder as well how approximately 1,000 Everett city employees past and present, retired or still working might feel if a year came by and the city couldn’t afford to take the pension money out of the budget?
How would that go down, we wonder?
What happens if there is not enough money in the city treasury to pay our retirees in a given pay cycle?