There is a really big crisis coming.
Think about it this way. After 8 years and a 230% stock market advance the pension funds of Dallas, Chicago, and Houston are in severe trouble.
But it isn’t just these municipalities that are in trouble, but also most of the public and private pensions that still operate in the country today.
Currently, many pension funds, like the one in Houston, are scrambling to slightly lower return rates, issue debt, raise taxes or increase contribution limits to fill some of the gaping holes of underfunded liabilities in their plans. The hope is such measures combined with an ongoing bull market, and increased participant contributions, will heal the plans in the future.
This is not likely to be the case.
This problem is not something born of the last “financial crisis,” but rather the culmination of 20-plus years of financial mismanagement.
An April 2016 Moody’s analysis pegged the total 75-year unfunded liability for all state and local pension plans at $3.5 trillion.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
3 comments:
As the saying goes, sh*t is about to hit the fan.
Maryland state pensioners needs to thank our Politians for robbing our pension funds to pay for all the freebies they give away / supporting illegals and lawbreakers to name a few programs. They robbed these funds to balance an out of control budget.
How many millions of Americans will they rip off and scam?
GUARANTEED --- THEIR pension is looking GREAT!
Put some people in prison. This couldn't have happened in a vacuum --- someone mismanaged money and did it so badly that pension plans across the country are trillions in debt with NO WAY to honor all the rosy promises these leeches made.
What in the hell happened to ACCOUNTABLITY in this country? HUD loses $500 MIILION and no one knows anything? The IRS can find $35 you didn't report in 2009 and will ruin your life over it, but HUD can lose $500 million and no one even gets a letter of reprimand??
Unions take dues and promise pensions, but spend $60 million for "lobbying"? THEN say "we can't afford our pension promises".
Union members who see their $2800/mth turning into $485/mth should meet at the front door of the union headquarters. Go inside and start the hanging from the first floor and work their way up.
They have been cheated, lied to, and stolen from.....and they are now supposed to shut up and start eating crackers for dinner while their union leaders and political heroes eat steak and vacation in Paris.
REVOLUTION is coming.
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