Cincinnati NAACP
Media Release
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CINCINNATI, OHIO - November 8, 2010 - The Cincinnati Pension Fund
could go broke before the projected 2028 date.  The city pension board
continues to use a rate of return of 8% to calculate the pension going
broke in 2028.  However, the pension rate of return over the last 10
years is dramatically lower than the projected 8% of return.  The
pension could go broke in half the time if City Hall does not inject
$600 million of cash in the pension.  "At some point City Council is
going to have to face the reality of the real rates of returns and not
projections.  Cincinnati retirees should demand that City Hall provide
them all calculations based on real rates of returns," Christopher
Smitherman, president of the Cincinnati NAACP says.
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City Council appointed a new board to provide recommendations to the
Mayor and City Council on how to fix a financial crisis within the
Cincinnati Pension.  The pension is sending $200 million a year in
benefits.  The pension value has dropped from $2.5 billion to $1.8
billion over the last 6 years.  It is difficult to send out $200
million a year in benefits and the pension post consistent negative
returns.  "The new board is going after current retiree benefits.
This is what you call a broken promise for 30 years of work,"
Smitherman says.