OMAHA- Omaha Public Schools teachers union and a key Nebraska lawmaker may pave the way for the state to take over management of the district's troubled pension fund. LB147 cleared a huge hurdle as the Omaha Education Association reversed its original position and backed the plan.

“The people in Omaha need to see the money is being handled properly and the plan is being run efficiently,” Kolterman said.

The change to state management would not observe the school district of the $848 million shortfall in the Retirement System. The Omaha World Herald investigation two years ago traced the shortfall to investment blunders by district-appointed trustees. The investigation further found that the trustees bailed heavily on the stock market amid the 2008 crash. They decided to move the money into exotic investments such as real estate in India and oil in Kazakhstan. Half of the system's dollars were put into investments with ties to the fund's investment adviser, despite that very obvious conflict of interest.

This shortfall is now forcing the district to spend $25 million a year to bring the fund back to solvency, a figure that is projected to keep growing. Now that the teachers union supports the bill, the only opposition comes from an organization representing current OPS retirees. The bill will also requires OSERS to complete a compliance audit, as the organization has not completed one in over 70 years.

Read the full article by clicking HERE