Wednesday, December 29, 2010 12:30 PM

Pension "Armageddon" in Pittsburgh; State Threatens Takeover of City Pension Plan

Pension stories seem to be going viral lately, not any story in particular, just the sheer number of them. Please consider Pittsburgh City Council, Mayor Clash on Pension ‘Armageddon’ http://noir.bloomberg.com/apps/news?pid ... 2VEEvis31g

Pittsburgh’s City Council ordered Mayor Luke Ravenstahl to attend a meeting today to hash out a plan to avoid a state takeover of the underfunded municipal pension, which may more than double its cost to taxpayers.

A vote to compel Ravenstahl to come before the council’s finance committee followed about six hours of debate on shoring up the pension system using parking fees. The retirement plan has about $325 million in assets to cover $1 billion in promised benefits, according to a consultant’s report. The city has until Dec. 31 to show the state how it will bolster the plan.

“It’s merely an accounting gimmick to get past Dec. 31,â€