[SkyPilot]

The article lays out some incredible data points. I highly recommend reading it, especially if you or someone you know relies on a state pension.

This will also have profound impacts on U.S. economy as a whole, and millions of lives.

"In 2017, total pension liabilities for all states was US$4.1 trillion and assets were $2.9 trillion. That means collectively, state pension funds would need $1.3 trillion to be able to make payments to everyone promised a pension. This represents about 9% of the U.S. GDP...….The combination of the failure to contribute the state portion into pension funds, the reduced pension contributions from fewer full-time workers, and lower rates of return on investment over the next several years will turn the pension problem into a fiscal crisis for states. States will be obligated to pay pensions, but won’t have the money to pay for them."

[cuban leaf]

We are in the eye of the storm. The other side is economic.

[proxy_user]

That doesn’t actually sound too bad, depending how far out the payments are and what the rate of return on invested capital is. For example, at an interest rate of 6%, $2.9 trillion would be worth $4.11 trillion in six years.

Of course, they are already paying out money right now, and they may or may not be able to get 6%. But some of the payments are 20 or 30 years in the future.

I suspect the problem is in individual plans, not in the overall situation. Many states are fully funded, but the ones that aren’t are way behind.

[oldplayer]

I have a small retirement from a state agency. My state is a red “flyover state.” Our fund is 97% funded, which makes it sound under any actuarial definition.

Of course, it is not at all as generous as those retirements in the blue states where they pay and promise the moon, all to be figured out later.

[teeman8r]

some governments may take the opportunity to weaponize COVID to strike at those that may be enjoying the benefits of those public pensions—taking the chance of placing sick individuals among the population that is most vulnerable and most likely to be on a pension. hmmm. NY nursing home much?

[P.O.E.]

Fixed-income recipients hardest hit by inflation.

Printing trillions correlating with rising prices and shrinking packaging at the market.

5lb bag of sugar is now 4lb.

Tomato sauce used to be 28 oz.

Spaghetti was $1/box, now $1.50.

So far, no wage/price spiral being reported AFAIK

[blueunicorn6]

The lesson?

Don’t believe the lies of the Democrat Party and their con men politicians.

[BlackAdderess]

They have had plenty of warning but I doubt we are going to get through this without some federal aid for states that have had many decades of bad decision making. The price for that help should be a complete halt to rewarding corrupt officials and a cap on pension payouts that does not touch the average powerless schmuck but does cut off the people who should have known better from drawing six-figure annual retirement payouts. The alternative is the current generation paying for the screwups of decades before, and mass economic destruction. It is what it is, but there needs to be a completely transparent reckoning so that people don’t keep doing the same things all over again.

[knarf]

[familyop]

Less money for retired Democrats means less political influence for retired Democrats. Let them work until they croak, like the men who worked in factories over 40 years ago before being displaced by economic globalism.

[familyop]

Big, fat, trivial government had to end one way or another. The tens of millions of voters receiving employment incomes from the various levels of government repeatedly voted to shut down men’s jobs in real production in the U.S. The debts piled up as a result of that policy with lack of sustainable revenues from manufacturing and building. Those shortfalls were compounded by the resulting balance of payments deficits in trade. So majorities voted for the other way since the middle of the 1970s.

Well, the hens are coming home to roost, and they’re going to get skinny.

[Herakles]

Politicians, i.e. lawyers , will just raise taxes to cover their incompetent, outrageous promises that should have never been made. Confiscate their wealth first!