According to a first-of-its kind pension-tracking website created by a team at Stanford’s Institute for Economic and Policy Research, America’s unfunded pension liabilities—the difference between the value of state pension funds and the amount owed to public sector workers—totals over $4.8 trillion, or $41,219 per household. The Stanford team arrived at number assuming a three percent rate of return—far lower than the 7.5 percent “actuarial” rate many pension funds rely on, but rarely meet. (Even if the actuarial basis were accurate, state pension funds would still owe a combined $1.04 trillion, or $8,872 per household).Now admittedly the article mentions that the critical differences is that States can't just print their way out of these problems.Might be time to pay some careful attention to your state executive and legislative races. The hour gets late.
Monday, June 13, 2016
Tick Goes the Pension Bomb
And this is just State pensions not Federal pensions or "TOO BIG TO FAIL" union pensions: