[OttawaFreeper]

The Soviet Union...thump...the Soviet Union...thump...the Soviet Union...thump...the Soviet Union..

[tired&retired]

I used to audit pension funds as a CPA. I remember talking with the actuary who stated that a 1 percent change in assumed ROI could easily change the required current funding to increase 15% or more. If we have a stock market downturn the actual yields could be negative really creating a financial disaster.

This is a ticking time bomb for many states...

[goodnesswins]

Oregon ping

Making leaving Oregon easier and easier...sad how the progs are ruining the state

[tired&retired]

If a .3% reduction in assumed ROI increased current year by $2.4 billion, that could be easily a 3% reduction and an increase of $24 billion.

[Wally_Kalbacken]

The critical thing is to look out for attempts to federalize the irresponsibility of various states (Illinois at the forefront, California not far behind) by offloading the costs to the taxpayers of all 50 states. This is lurking out there, and I sort of expected Obama to move in that direction in his lame duck phase, but it didn't happen. The Illinois constitution prohibits reductions in the pension benefits of public employees, and that was recently affirmed by their Supreme Court. This means the only way out for them is to keep raising state income taxes, which is only driving people with income and discretion to leave the state.

There is a fairly broad array of states in terms of funding public pensions, with a few fully funded, one or two were recently rated as slightly over funded. But then the majority are in a spread down to CA, which may presently be covering around 50% of its unfunded pension plan liability to state employees. That is 50% of an enormous number. Something has to give at to give, following the dicta which states - that which cannot continue, will not continue.

[blueunicorn6]

Maybe Oregon can borrow some money from Puerto Rico.

[dennisw]

The solution is simple. Rape the taxpayers.

[vetvetdoug]

California, Oregon, Illinois, and other state's Democrat “public service” employees have voted themselves the golden parachute that is really a Ponzi scheme that is going to implode.

[eyeamok]

Since Ponzi schemes are clearly illegal, the Feds should just Abolish the fraudulent retirement ponzi schemes at the State Level, seize all the assets, roll the assets and All retiree’s into Social Security. Which is also a Ponzi scheme.

[dragnet2]

Like the private sector has experienced for 20+ years, simply cut their salaries, wages and benefits.

Very simple.

If it’s good enough for private sector America, it’s good enough for those in government sector.

[rollin]

he real problem is that the chances of making 7.2% ireturn is only about 10%.

With the bond portfolio returning less than 4%, perhaps, a more meaningful expected rate of return would be 5%, of 2.2% less than the revised number.

Now that will cause a little angst among the politicians.