Letter to the editor.

• Author: Skiba, Richard H., Jr.
• Position: News & Numbers - Letter to the editor

The following three articles caught my attention in the February 2011 edition of the Government Finance Officers Association's Government Finance Review (GFR):

* Lies, Damned Lies and Statistics, Jeff Esser, GFOA executive director

* Setting the Record Straight About Public Pensions, Leigh Snell, director of federal government relations, National Council on Teacher Retirement

* Addressing Media Misconceptions about Public-Sector Pensions and Bankruptcy, Ronald D. Picur, professor emeritus of accounting, University of Illinois at Chicago', and Lance J. Weiss, senior actuarial consultant, Gabriel, Roden Smith and Company

In these three articles, the GFOA strongly demonstrates its support of and confidence in public-sector defined benefit pension plans. Mr. Snell cites the cost effectiveness (GFR, February 2011, page 13-14) and pre-funded nature (GFR, February 2011, page 11) of such plans. Dr. Picur and Mr. Weiss discuss the lack of actuarial expert input in the works of others whose goal may be to change public policy (GFR, February 2011, page 23).

I agree that the valuation of defined benefit pension funds' net assets and the corresponding plan sponsors' unfunded actuarial liabilities belong to those in the field of actuarial science. Investment yield assumptions and present value of plan liabilities also belong to them. It is the accountants' responsibility to include them in the financial statements of sponsoring state and local governments.

Given all the confidence expressed by the GFOA in the three articles listed above, the GFOA should have no problem...