$5.2 Trillion Of Government Pension Debt Threatens To Overwhelm State Budgets, Taxpayers

[pipedreams]

"Pension Tracker, a project of the Stanford Institute for Economic Policy Research led by former California State Assemblyman Joe Nation, Ph.D., is out with its updated assessment of the nation’s unfunded state and local government pension fund liabilities. It’s not a pretty picture—especially if you live in Alaska, California, Connecticut or Illinois where your per household pension debt ranges from $102,084 to $76,398. "

https://www.forbes.com/sites/chuckdevore/2019/05/31/5-2-trillion-of-government-pension-debt-threatens-to-overwhelm-state-budgets-taxpayers/#213eb3f7759d

[Historian]

I wouldn't want to be a government employee in those states.

 

 

[minervadoe]

Since government employees got the right to unionize, they have driven their salaries to unsustainable levels.  Plus, most government bodies did not match pension funds and invest them as they should have.  Also, most pension funds predicted a high rate of return for their investments which they did not get (even if funds were secured and invested). 

[Historian]

My state passed several laws regarding pensions to avoid this.   The most important is we have to be able to fund 80 percent right now.  

That 80 percent includes people like me with 17 years state time who are not ready to retire.   In short, we actually have room for bad things to happen without breaking the bank.

We also contribute directly from our take home with a match from the state.  So we have skin in the game.

We also have shown positive returns on the investments for the last 10 years.

And we have fewer state retirement employees.   Most counties are in the state retirement system in my state and some larger cities.   So it's not just state employees who benefit from the retirement system.

States like California have let the unions take over and they have failed the plan.

[fastbolt]

Not all local government employees are part of a state retirement system here in CA.

My retirement system has been around for 74 years, and as of the last annual financial report it was 87.5% funded.

[Historian]

19 minutes ago, fastbolt said:

 

My retirement system has been around for 74 years, and as of the last annual financial report it was 87.5% funded.

That's showing a lot of financial stewardship for your system.  The way it should be.

 

[Historian]

I have to balance my bills.  Your government should too.

Edited June 5, 2019 by Historian

[Moshe]

On ‎6‎/‎5‎/‎2019 at 10:29 AM, minervadoe said:

Since government employees got the right to unionize, they have driven their salaries to unsustainable levels.  Plus, most government bodies did not match pension funds and invest them as they should have.  Also, most pension funds predicted a high rate of return for their investments which they did not get (even if funds were secured and invested). 

Actually GS-13 and above are not entitled to Union Representation.  You get FLEOLA and hope for the best.  Pensions for FERS are mostly based on a percentage of the highest three years served, plus whatever you have put into the TSP (stock market), which is matched partially by the Government.  However, much like Social Security, Congress regularly raids the "G" Fund, which are stocks and bonds.  Obama needed that for all his multi-trillion dollar "stimulus," packages that never saw their way to the America Public, but merely pork projects for Democrat Cronies.  This led to the National Debt skyrocketing.  However, at that time, Congress needed a scapegoat for their unscrupulous spending, as did Obama.  So, the Government employee was the mantra they kept banging and using for blame.  They figured if you lie enough, and have the media you control lie for you enough, it will be believed.  So, it went from almost 8 years of being a pariah, to Trump and being heroes.   In the end it is all bullshit.