"Just about every state and local government is in a financial bind because they're spending more than they take in. Public sector pensions are a major factor here.
They already represent a big part of spending and they're underfunded by somewhere between one and five trillion dollars.
As those shortfalls come due, either taxpayers are going to get screwed through higher taxes and reduced services, or public sector employees are going to take a hell of a haircut.
Here are three reasons to reform public sector pensions now.
Unsustainable pension payouts played a large role in the municipal bankruptcies of Detroit and Vallejo, California.
In the 250 largest cities in the country, pensions on average soak up 10% of budgets, a 30% increase over just the past five years.
As retirees start outnumbering workers – and the NYPD already has more former cops drawing a pension than active ones walking a beat – the amount of money spent on pensions is only going to skyrocket."
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