(The Center Square) – The Milwaukee pension system had a net liability of $2.1 billion at the end of 2023 and a fiduciary net position of $5.8 billion, according to a Legislative Audit Bureau report on the city’s finances.
The report also found that the Administration and Operations Committee of the Board improperly went into closed session three times between 2022 and 2023 using a closed meeting clause that was repealed in 2011 and 11 committee meetings were closed between February 2013 and December 2021 for the same improper reason.
The audit also found two material weaknesses in the system’s financial reporting, including not properly classifying all investments and improperly calculated the net pension liability in employer schedules.
“The ending net pension liability was understated by $85.1 million and the total deferred outflows of resources and the total deferred inflows of resources were each overstated by $395.2 million,” the audit said.
Earlier this year, Truth in Accounting graded Milwaukee with a “D” for its financial position as it owed $15,300 per taxpayer for its obligations. Any city with an average taxpayer burden of between $5,000 and $20,000 was graded with a “D.”
In 2023, the Milwaukee pension system reported $545.9 million in net investment income and $203.7 million in total contributions as it paid pension benefits of $466.6 million with $8 million in administrative expenses.
