investigating public pensions by craig harris

Winner of the 2011 GoldAward in the Barlett & SteeleAwards for InvestigativeBusiness Journalism

Winner of the firstToner Prize for Excellencein Political Reporting

Session sponsor

Investigating Public Pensions

Quick Pension Quiz

How familiar are you with public pensions?

By Flickr user Nevada Tumbleweed (Mark Holloway)

3

Quick Pension Quiz

How many states have underfunded public pension systems?

By Flickr user Nevada Tumbleweed (Mark Holloway)

Quick Pension Quiz

How many states have underfunded public pension systems?

By Flickr user Nevada Tumbleweed (Mark Holloway)

Answer: 34

6

6Source: Pew Center on the States, 2012

Quick Pension Quiz

Which state fully funded its pension cost in 2010?

By Flickr user Nevada Tumbleweed (Mark Holloway)

Quick Pension Quiz

Which state fully funded its pension cost in 2010?

By Flickr user Nevada Tumbleweed (Mark Holloway)

Answer: Wisconsin

What Does It Mean?

•Taxpayers likely are paying more to fund public pensions.

•Widespread interest from readers.

•Great enterprising stories.

By Flickr user Mayor McGinn

What You Will Learn•How to uncover abuses in public pension

systems•How to spot red flags in an unhealthy public pension system •How to win battles with public records

requests•How to do quick-hit stories and a series

with impact

Photo by Flickr user kjarrett

Getting Started Do the homework/Learn

the terms:▫Cheat-sheet handout

(Milstead – Defined Benefit Plan, Defined Contribution Plan)

▫Unique local issues – DROP (Deferred Retirement Option Plan), Return to Work.

▫Explain the terms as if you were teaching Pensions 101. Always do the math for the reader.

By Flickr user smbuckley23

Biggest Things We Found

•1. Arizona elected officials make more in retirement than when they served in office.

•2. Police officers and firefighters can retire after 20 years and receive six-figure lump-sum retirement payments and annual pensions.

•3. Convicted felons were receiving healthy public pensions.

Finding Red Flags•Look at funded ratios: If they

are low and contribution rates are high, you have a story.

•See who is receiving large public pensions. The information may be surprising, e.g., former college football coaches and felons.

•Fights over public records.

By Flickr user Victoria Reay

Filing Public Records Requests• Start small and work your way up/focus on

one system.• Arizona Republic Project: 67 requests

▫A. One with each of the four state systems/two municipal systems (some multiple times).

▫B. All 57 school districts in Maricopa County.▫If you have multiple systems, use strategy to

get records.

What do you ask for?

•A. Be specific in what you are seeking.•B: Cite the law that entitles you to get the

information.

What do you ask for?•C. Ask for the information electronically. •D. Ask the public entity to put into writing the

law that would allow information to be withheld.•E. Set a deadline to get the information.

x x x x x x x xx x x x x x x x

x x xx x x x x x

x x x O

Photo by flickr user Joe Lanman

Seeking Information•1. Be specific in what you want

▫A. The list of names of any and all public employees who are currently receiving a pension check from a retirement system.

▫B. The monthly and/or annual amounts of each pension for each one those employees.

▫C. The year the individual retired.▫D. The years of service for each retiree.▫E. The last place of employment and last

job for each retiree.

ASRS SpreadsheetLAST NAME FIRST NAME EMPLOYER

NAMERETIRE_DATE TOTAL SERVICE Monthly

Benefit

Years of Service Purchase

Cost of Purchased Service

Annual Benefit

Peck Carol

Alhambra Elementary District 68 7/4/2002 35.12 18,868.51 4.12 97201.66 226,422.12

Duvall Debra Mesa Unif Dist 4 10/17/2008 36.55 18,032.99 14.99 124761.6 216,395.88

Snyder GeraldArizona State University 6/27/2009 44.25 16,872.11 6.75 91395.79 202,465.32

Hoskisson RobertArizona State University 6/29/2009 34.78 16,447.40 29.78 1225496 197,368.80

Krahenbuhl GaryArizona State University 7/1/2003 38 15,256.80 8.00 178206.5 183,081.60

Tindall Jr RobertUniversity Of Arizona 7/31/2003 40.32 15,021.97 3.05 35490.71 180,263.64

Randolph Phillip

Maricopa Co Community College Dist 7/6/2005 41.21 14,692.82 1.00 16262.4 176,313.84

Aranda LuisArizona State University 7/31/2002 32.13 14,155.52 5.08 132395.5 169,866.24

Nicodemus Karen

Cochise Community College 8/1/2009 30.22 13,836.42 7.00 109666 166,037.04

Expect a fight• 1. Arizona State Retirement System initially denied

parts of the request.• 2. Use strategy. • 3. Be prepared to get your lawyer involved• 4. Newspapers in other states (Oregon and

Nevada) have filed suits.

Photo by flickr user Joe Shlabotnik

Pension Project/School Districts

• 1. Filed 57 Public Records Requests: One with each school district in Maricopa County▫ A. Goal to see if anyone was

double-dipping and the cost to Arizona State Retirement System

▫ B. Resistance

Photo by flickr user scott1723

Quick Pension Quiz

By Flickr user Nevada Tumbleweed (Mark Holloway)

Who makes more in a public pension? The former city manager in Phoenix or ex-presidents of the United States?

Former Phoenix city manager vs. former president?

Frank Fairbanks, $246,813

George W. Bush, $199,700

Managing Data•1. Keep track of data

with spreadsheet▫A. When request was

sent out▫B. Who received the

request▫C. When the

information was returned

▫D. Compile the information

Photo by flickr user IvanWalsh

Organizing the data

•1. Keep data in separate spreadsheets.

•2. Keep notes in separate folders.

•3. Map out stories with editors.

Photo by flickr user numberjuan2

Executing a project/series1. Plan firm deadlines for

stories and graphics.2. Do graphics with

corresponding stories.3. Coordinate with data

editor.4. Expect long hours.5. Always, always, always

do the math.6. Don’t be afraid to double-

and triple-check.7. Make it simple.

The Series: A Soaring Burden•1. Overview•2. Elected Officials•3. Public Safety•4. City of Phoenix•5. Educators•6. Convicted

Felons•7. Other States•8. Solutions/Op-Ed

Pieces

Expect criticism/praise

•1. No one likes others messing with their money.

•2. Allow critics to write op-ed pieces.

Photo by flickr user Grant.C

Love Letter

“Why don't you go with the dept. of Corrections employees on a week shift at the Maximum Security.  Take the day shift so you won't have to work from midnight till 8.

“Let them throw feces and urine in your face, wonderif they are going to shank you when your back is turned, deal with the crazy people that are taken off the street by brave people, the police.

“Do that for 20 years and see if you earn your pension.

“The most dangerous thing you do is drive to work, and make more money writing articles in your climate controlled office then they do.”

Photo by flickr user Vectorportal

Results

• 1. Laws changed

Arizona lawmakers OK bill on public pensions systems

Craig Harris Apr. 19, 2011 The Arizona Republic

• The state Senate has sent sweeping changes to Arizona's public retirement systems to Gov. Jan Brewer for her likely signature into law, but a public employees' lawsuit challenging the reforms looms on the horizon.

• Arizona is at least the 11th state this year to make changes to its public-pension programs as states across the country are struggling with the soaring costs associated with public retirement plans.

Results

A. Savings for taxpayers

B. Harder to double-dip/return to work

C. Felons no longer can get pensions

D. Changes to DROP (Deferred Retirement Option Plan)

E. Elected officials pay more

F. Spin-off stories/lawsuits

Photo by flickr user DonkeyHotey

What I would have done differently

• Better online presence/interactive graphics. • Stories on average pensioners.• Done an online chat early in series to talk with readers.

http://www.usatoday.com/news/nation/2011-10-11-1A-state-lawmakers-pump-pensions.htm

Contact info

•craig.harris@arizonarepublic.com•602-444-8478 – direct•602-509-3613 – cell •Series link:

http://www.azcentral.com/news/articles/arizona-pension-funds.html