Thursday, February 25, 2010
Public Employee Benefit Plans: Up to $1 Trillion in Unfunded Liabilities
The likely answer to this is higher taxes.
Now, if elected officials and their appointees negotiated contracts as if they were protecting their own money, things might be different.
Either that, or if payouts were flexibly linked to the revenue stream.
Better yet, go to private retirement plans and get the government out of it completely...
Now, if elected officials and their appointees negotiated contracts as if they were protecting their own money, things might be different.
Either that, or if payouts were flexibly linked to the revenue stream.
Better yet, go to private retirement plans and get the government out of it completely...
Jonathan Williams reports at BigGovernment.com:
"In fact, as of 2006, states had accumulated nearly $360 billion in unfunded pension obligations, according to a new 50 state study conducted for the American Legislative Exchange Council (ALEC). The report entitled 'State Pension Funds Fall Off a Cliff,' is co-authored by Dr. Barry Poulson of the University of Colorado and Dr. Arthur P. Hall of the University of Kansas.
Much of the current data regarding liabilities in public employee pensions was taken before the recent economic downturn, and the study’s authors warn the problem is much worse today since stock market losses have not been fully realized in many official government pension statistics. Other estimates with recent data place the unfunded pension liabilities at $1 trillion nationally."
