'Dysfunctional' pension plans need radical fix now > Blog > State Budget Solutions
Public-sector context is where taxpayers are on the hook for fundamental flaws and outright corruption in state and municipal defined benefit plans.
As of June 30 of this year, they fell at least another 9.3 percent behind where they need to be - by their own arithmetic - to pay pension benefits.
They lost money, all contributions went to paying current benefits instead of being invested to pay the future benefits earned by current workers, and they had to cannibalize assets to pay benefits.
Taken as a whole, public defined benefit plans have fallen and never can get back up.
The numbers are irrefutable.
Somebody is going to have to make up more almost $5 trillion because the tab is rising fast and so-called "reforms" in 44 states do little or nothing to pay it down.
Politicians expect taxpayers who already face a retirement crisis of their own to pay trillions of dollars more to receive no government services of any kind.
No comments:
Post a Comment