Allegheny Treasurer Rejects Resignation Call Over $1.4 Billion Pension Deficit
Updated
Updated · WPXI Pittsburgh · Sep 15
Allegheny Treasurer Rejects Resignation Call Over $1.4 Billion Pension Deficit
3 articles · Updated · WPXI Pittsburgh · Sep 15
Summary
Erica Rocchi Brusselars refused to step down from Allegheny County’s pension board, arguing the $1.4 billion shortfall built up over two decades and could not be solved in her roughly 2 1/2 years in office.
More than $100 million a year would be needed to restore the fund’s solvency, according to a July analysis that thrust the pension gap into public view after a 30% property-tax hike heightened fears of another increase.
District Attorney Stephen Zappala demanded Monday that board members resign, cooperate with his investigation and abolish the board, accusing them of wasting hundreds of millions, meeting behind closed doors and ignoring whistleblowers.
Tuesday brought swift pushback from council members and County Executive Sara Innamorato, who said Zappala had also been in office during the years of mismanagement and was attacking officials trying to protect retirees.
SEIU Local 668, representing about 20% of county workers, backed exploring a merger with statewide pension funds, while the board is set to meet Thursday to discuss how to close the gap.
With a $1.4 billion deficit threatening Allegheny County pensions, how will leaders secure $100 million annually without triggering another massive tax hike?
If the Allegheny County pension fund runs dry by 2043, what drastic measures will be forced upon retirees and taxpayers to survive?
Beyond the political finger-pointing, what hidden financial missteps allowed a staggering $1.4 billion pension shortfall to secretly build up over decades?