Unfunded Pension Liabilities Do Not Mean Insolvency

State and city pension funds are not insolvent. Pension funding for states and cities is under a microscope these days, with predictions that unfunded liabilities are going to lead to wide scale defaults and bankruptcies of municipal debt. These predictions are overblown, by people who have not followed state and city fiscal trends over decades, through 6 recessions, as I have. The following are some facts that informed investors need to know about public pension funding.

Herbert J. Sims & Co. is pleased to announce that, in addition to providing innovative financing solutions to senior living providers, Sims now offers invaluable resources to Senior Living Boards and management to assist in understanding the ever-changing financing environment. These resources include a variety of Board Education Modules, including our newest module, "Banks, Bailouts and Budget Busters – What the Senior Living Industry Can Expect from the Capital Market this Year."

Sims Converts FFT Senior Communities Bonds From Fixed Rate to Variable Rate Mode With an Initial Weekly Rate of 0.30%

On May 13, 2010, Herbert J. Sims & Co. remarketed $16.575 million of F.F.T. Senior Communities' ("FFT") Series 2000B bonds, which were converted from a long-term interest rate mode to a weekly mode. Sponsored by the FF Thompson Health System, Inc., FFT owns and operates a Canandaigua, New York continuing care retirement community known as Ferris Hills at West Lake. The community consists of 84 independent living units and 48 enriched housing units. The start-up construction of the community was originally financed by Sims with $23.855 million of Series 2000 tax-exempt bonds. The bonds were enhanced with a 5-year KBC Bank N.V. letter of credit. In December 2001, $5.3 million of bonds were paid in full. In 2005, KBC Bank renewed the letter of credit on the outstanding Series 2000B bonds for another 5-year term ending May 13, 2010, and the outstanding bonds were remarketed with a 5-year term.