Info from July 1, 2010 (most recent year analyzed in district actuarial report):

  • The district has 271 active employees and 135 retirees. Figures do not included spouses.
  • Average age of IUFSD employees is 44 for men, 46 for women.
  • Of active employees, 43 are currently eligible to retire.
  • As of July 2010, all employees, retirees and their spouses receive free healthcare benefits for life (no co-pay, no deductible).
  • Present value of all benefits (other than pension) is $100,000,000.

I am still learning the meaning of “present value.”

In a nutshell, “present value” means that to cover these future costs, which we have promised to pay, we would need to put $100,000,000 in a bank account today at an interest rate of 4%.

NOTE, however, that state law does not allow us to do this: state law does not allow us to fund (save money for) the benefits we’ll be paying.

By law, we are required to pay-as-we-go, which means that future parents and non-parents alike will have to pay out that $100,000,000 (and the figure will be higher when residents pay it, of course, because future taxpayers won’t have the 4% compounding interest they would have had if the money had been saved and invested).

I’m going to fact-check this post and come back to it.

4 is not 2