Report: Bennet-backed pension deal costs millions

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The Denver school system is reportedly stuck paying millions of dollars in interest and fees because of a pension financing deal recommended by Sen. Michael Bennet while he served as superintendent.

The New York Times reported Friday that the deal has cost Denver at least an extra $25 million.

The Denver school board unanimously backed the deal in 2008 in hopes of saving tens of millions of dollars in annual debt costs. But, much like an adjustable rate mortgage, the deal’s interest rate was subject to change depending on economic conditions.

Bennet and former chief operating officer Thomas Boasberg say the deal saved the district from having to pay $20 million to cover a pension shortfall. They say no one could have predicted the credit crisis that ended up making it so expensive.

2 Responses to Report: Bennet-backed pension deal costs millions

  1. Another PensionPig……..paid for by we, the people…..I wonder what the Founding Fathers would think of this and all the other PensionPigs.

    Ed Skalisky
    August 6, 2010 at 11:44 am

  2. It would have been nice if due diligence were done to look at future possibilities and impacts.!

    August 6, 2010 at 2:27 pm