Posted on 10/24/2011 5:34:32 PM PDT by dragnet2
Retirement programs for former federal workers — civilian and military — are growing so fast they now face a multitrillion-dollar shortfall nearly as big as Social Security.
The federal government hasn't set aside money or created a revenue source similar to Social Security's payroll tax to help pay for the benefits, so the retirement costs must be paid every year through taxes and borrowing.
The government paid a record $268 billion in pension and health benefits last year to 10 million former civil servants, military personnel and their dependents, about $100 billion more than was paid a decade earlier after adjusting for inflation. And $7 billion more was deposited into tax-deferred accounts of current workers.
In addition, the federal government last year made more than a half-trillion dollars in future commitments, valued in 2010 dollars that will cost far more to pay in coming decades. Added last year:
$107 billion in retirement benefits accumulated by current workers.
$106 billion in new benefits granted to veterans. Retirement
More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.
The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.
The retirement programs now have a $5.7 trillion unfunded liability, compared with a $6.5 trillion shortfall for Social Security.
Outgoing Defense Secretary Robert Gates told Congress in June in his final budget testimony that health care costs "are eating us alive."
Rep. Jim Cooper, D-Tenn., a member of the Armed Services Committee, says retirement benefits are an extremely sensitive issue. "We have a disconnect between all these sacred promises we've made and how they are not backed up by anything," he says.
(Excerpt) Read more at abcnews.go.com ...
Considering more money to went to 10 million government retirees, than 54 million on Social Security, it's a good question...Seeing tens of millions are out of work and their bloated intrusive government is going to go broke from lack of tax revenues, damn good question.
his part just bends the brain...
More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.
The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.
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I love how ABC News did a fraudulent fish investigation (saw thread on FR earlier this evening), yet not a peep about this impending train wreck!!!
This is what 20+ years of really bad leadership got us. Massive intrusive government, massive uncontrolled debt, a bankrupt country, lawless violent borders, beaten down middle class, etc.
Worst part is that most of those jobs are really not given to the best candidates. They are impossible to get unless you are related to the top people.
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