DA Zappala sues Allegheny County, retirement board over 'Ponzi scheme' pension system

Politics and Government Politics and Government

Fri, December 13, 2024

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DA Zappala sues Allegheny County, retirement board over 'Ponzi scheme' pension system

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DA Zappala sues Allegheny County, retirement board over 'Ponzi scheme' pension system

_{//politics-government.news-articles.net/content/ .. ment-board-over-ponzi-scheme-pension-system.html}
^{Published in Politics and Government on Thursday, December 12th 2024 at 9:01 GMT by WESA}

Zappala called the situation "one of the most serious unfunded pension crises in the history of the Commonwealth."

Allegheny County District Attorney Stephen Zappala has filed a lawsuit against the Allegheny County Retirement Board, alleging that the county's pension system operates like a Ponzi scheme. The lawsuit claims that the system, which has been in place for over 100 years, relies on new contributions to pay benefits to current retirees, rather than being fully funded. Zappala argues that this practice is unsustainable and potentially illegal, as it does not adhere to actuarial standards for pension funding. He is seeking a court order to force the board to address the funding shortfall, which he estimates at over $1 billion, and to reform the pension system to ensure its long-term viability. The suit also highlights the lack of transparency and accountability in how pension funds are managed, suggesting that current practices could lead to significant financial distress for the county in the future.

Read the Full WESA Article at:
[ https://www.wesa.fm/politics-government/2024-12-12/da-zappala-sues-allegheny-county-retirement-board-over-ponzi-scheme-pension-system ]

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DA Zappala sues Allegheny County, retirement board over 'Ponzi scheme' pension system