Atlanta Public Schools underfunded its pension plan

Russell Grantham:

Beset by scandal over irregularities in test scores, Atlanta Public Schools has another, longer-running scandal on its hands: The district has underfunded its pension for custodians, bus drivers and cooks by more than a half-billion dollars.

APS has the worst underfunding of any large public pension plan in the state, according to a recent state audit. While it is generally agreed that, at any given time, a pension plan should contain 80 percent to 90 percent of the money it is obligated to pay out, APS has assets to cover just 17.4 percent of its pension promises.

The Jan. 1 report by the state Audits and Accounts Department found that pensions run by Georgia's cities, counties and other local governments are under water by almost $4.5 billion. Three plans run by the city of Atlanta, plus the APS plan, accounted for nearly 40 percent of the deficit statewide.

Posted by Jim Zellmer at March 28, 2011 1:18 AM
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