MSNBC article Growing deficits threaten pensions

marys1000May 11, 2008

FYI interesting reading on state accounting, state pensions etc.

Here is a link that might be useful: MSNBC article

Thank you for reporting this comment. Undo
chisue

Thanks Mary. This was timely. We just received our RE tax bill and I noticed hefty increases for each department's pension fund. (20% increases!) Could be some cities are honest -- or that employees have demanded better funding at the local level.

I was especially taken by Buffett's comments on the foolishness of assuming any investment will pay 7.5% to 8.5% per year when the Dow average over the whole 20th Century was 5.3%.

    Bookmark   May 11, 2008 at 12:01PM
Thank you for reporting this comment. Undo
jkom51

And this doesn't touch on the issue of unfunded retirement health benefits, which is in even worse shape in most counties.

OTOH, CalPERS, the pension fund of CA state employees (county and city participation is voluntary, BTW, so not all state employees belong to it), is well run and even better invested. Their reward for this? Twice in the last 15 years, the State Legislature has raided the PERS funds to balance their state budgets, taking out the "excess profits"!

    Bookmark   May 11, 2008 at 6:29PM
Thank you for reporting this comment. Undo
busymom2006

In the private sector, I think employees have almost come to expect that things like this may happen to their traditional pensions. Some are even worried that social security won't be around for them when they retire. We all need to do a better job saving for ourselves.

But I'm shocked that the benefits of our public servants may now be in jeopardy. What a recipe for disaster.

Did Mr. Buffet suggest a solution to any of this? Whatever we need to do, we need to start doing it soon.

    Bookmark   May 11, 2008 at 8:10PM
Thank you for reporting this comment. Undo
richardallen

Yes you all need to start smoking again so we can cut 5-10 years off your payments......Seriously we underestimated how many people stopped smoking and will collect pensions for 5-10+ years longer then the actuaries told them to put in... hence bankruptcy or lowered benefits say you get 85-90%.

Just the unintended consequences of all the anti smoking campaigns

-------------------------
But I'm shocked that the benefits of our public servants may now be in jeopardy. What a recipe for disaster.

Did Mr. Buffet suggest a solution to any of this? Whatever we need to do, we need to start doing it soon.

    Bookmark   May 15, 2008 at 10:20PM
Thank you for reporting this comment. Undo
azzalea

Not a big surprise, really. In my state, many years ago, a governor dipped into the state pension funds. State employees pensions here, have been in jeopardy for many years--they're just hanging on by a thread. I have several friends and family who are state workers and their concern about their retirement goes back long before our current economic woes.

    Bookmark   May 20, 2008 at 8:52AM
Thank you for reporting this comment. Undo
marys1000

The Fed is always trying to borrow against and get into Fed Govt TSP money. Not even sure if its happened or not:( So many things to try to stay on top of. Not that I'd be able to change the decision anyway I suppose.

    Bookmark   May 23, 2008 at 8:48AM
Thank you for reporting this comment. Undo
bethesdamadman

Mary, it has happened, but the Fed (as in Federal Reserve) has nothing to do with that; it is the President and the Treasury Dept. that authorizes that to happen. If you're interested, I'll explain the hows and whys, but suffice it to say, that no federal employee has ever lost a cent when that happens. The money is replaced with interest by Treasury.

    Bookmark   May 24, 2008 at 9:13AM
Sign Up to comment
More Discussions
Any advice for a lady whose husband hides $?
I am a widow and used to doing for myself. I have a...
topsiebeezelbub
Tiny pension - Taking lump sum or monthly annuity payment
I just received a notice from a previous employer asking...
azmom
Programmable Thermostat proof
Does anyone have hard copy proof of the savings that...
rjexit5
What is the fair ratio?
The living expense is paid between the couple (Husband...
azmom
Here's a question for those who pay with cash
It happens occasionally, I'll be in a checkout line...
SnidelyWhiplash
© 2015 Houzz Inc. Houzz® The new way to design your home™