Posted on 06/29/2022 9:36:26 AM PDT by RomanSoldier19
The public pension situation could get really messy in the near future.
There are currently about 300 state-administered and nearly 6,000 locally-administered public retirement plans, according to PublicPlansData, a project of the Center for Retirement Research at Boston College and the MissionSquare Research Institute.
Those public pension systems have 14.7 million workers (e.g., state and local government employees, teachers, police and fire departments) and 11.2 million retirees.
Collectively, those systems had some $4.5 trillion in assets at the end of 2021. After six months of stock and bond market declines, those assets have likely dropped significantly, putting public pension plans in financial stress.
It’s a pattern we’ve seen over and over again. Public pension systems, often pressed by government employee unions, underfund their plans and overpromise their returns. Like a Ponzi scheme, those systems can get by when the markets and the economy are good.
(Excerpt) Read more at thehill.com ...
Expect to get further fleeced so they can get more income when not working than I ever got working.
The prices of houses have shot up, so property taxes have often soared.
and 99% of the people receiving these pensions or in line to receive these pensions voted for zhao xiden- oh well....
Of course, lefties, maybe even many conservatives, will demand a taxpayer bailout.
This is the mother of ticking time bombs.
I have no sympathy for government employee pension plans. They never seem to have any repercussions when there is a market downturn, unlike the private sector that rely on 401k. I am willing to bet most government workers vote Democrat, so they should feel some impact from their voting habits.
This has been a known problem and FRAUD for nearly 40 years. I am sure the big CPA firms and various three-letter agencies will say, “We had no idea.”
A bunch of poor schmucks (a/k/a taxpayers) will get tagged with the bill.
non public employees would be stunned to find out how much these people make and how much they draw when they stop "working"....
Most of the systems have promised too much for decades.
Public employee pension payouts should be in line with Social Security payouts for proper legal equality as I believe is required by Amendment XIV.
Since they are playing golf and working from home and contributing nothing, I would recommend, firings and pension claw backs.
Public sector pensions are immoral. Government will take the last dollar, from the last taxpayer - at the point if a gun, in order to pay people not to work.
Ever since about 1974 the problem of pension financing has been well known.
What $4.5 trillion in assets?
‘immoral” and unconstitutional
Public pensions may run afoul of Amendment V, since paying people not to work has no financial benefit to those forced to pay property tax.
> Most of the systems have promised too much for decades.<
Yep. Traditionally, retirement pay was something like half-pay. That was pretty much enough. Folks had their homes paid off, and their kids were out on their own.
But then governments started using pension formulas such that an employee could easily retire at close to (or even over) regular pay. Such a system is bound to collapse sooner or later.
“often pressed by government employee unions”
Collective bargaining duties run in both directions.
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