[PieterCasparzen]

The citizen should understand that almost a trillion dollars is owed by the taxpayer to the Federal employee retirement system.

The pension does NOT invest in the private sector, thereby producing investement returns for Federal employee pensioners.

Instead, it invests in future taxes.

The Treasury (the taxpayer) is paying interest - those are the "investment returns" for federal employee pensions.

[PieterCasparzen]

Because OPM and the U.S. Treasury are both parts of the Federal Government, these assets and liabilities offset each other from the standpoint of the Federal Government as a whole. They are eliminated in consolidation for the U.S. Government-wide financial statements.

This language describes how the Federal government produces a deceptive consolidated balance sheet where it's liabilities are understated, in this case by almost $1 trillion.

Make no mistake - this is NOT the future liability the pay out the defined benefit of the pension. This is NOT that liability.

This $916 billion is Treasury debt owed to the Federal employee pension system. It is the realest of real numbers, it is not debated - it's what's actually on Federal books and records.

[mountainlion]

The FERS Federal Employees Retirement System is the largest unfunded retirement system in the world.

[muawiyah]

If, for example, the Treasury had invested retirement system holdings in gold futures rather than US government (debt/bonds) a mere 10 years ago the price of gold would probably be $10,000 an ounce or more ~ and you'd been in some serious tax trouble ~ EVERYBODY would be paying like they were millionaires eh!

But, fur shur the federal employee retirement fund would be flush with ALL THE CASH.

So?

[Mouton]

The citizen should also realize social security, medicare, and any other “federal program” is financed the same way. I think Ron Paul suggested just doing away with all “trust” funds and just paying the costs out of general revenue some time ago. Unfortunately, with the dumbed down populace we have, they don’t see it.

I believe when political type says the national debt is not so worrisome because it is money we owe outselves, this is what they base that comment upon. Of course, they never consider these funds would be foreced to be paid under contractual law inasmuch as the benefits were partly, in most cases very small partly, paid for with the recipients funds.

[jagusafr]

I assume this is not the same thing as my Thrift Savings Plan...

Colonel, USAFR