Skip to comments.Maryland begins potentially painful pension process (US only $1 trillion in the hole)
Posted on 10/07/2010 7:53:06 PM PDT by Libloather
Maryland begins potentially painful pension process
By Nicholas Sohr
Daily Record Business Writer
Posted: 7:35 pm Thu, October 7, 2010
ANNAPOLIS Maryland began on Thursday a nine-month process to examine its underfunded pension system while many of its neighbors and other cash-strapped states across the country have already altered retiree benefits.
The 50 states combined were $1 trillion short of the amount needed to cover retiree healthcare, pensions and other benefits at the end of 2008, according to a Pew Center on the States report released in February. And in 2010, 19 states decided to act.
There has never been a year in my memory when more states have enacted such significant retirement legislation than 2010, said Ron Snell, of the National Conference of State Legislatures.
Some of the states shifted from defined benefit programs, like pensions, to mix in aspects of defined contribution plans, like a 401(k). Others raised employee contribution efforts without increasing benefits, and some increased age and service requirements necessary to retire.
Marylands $34 billion pension fund has struggled under the weight of investment losses not only in the most recent economic recession, but in the recession that followed the bursting of the tech bubble earlier in the decade. Lawmakers created a commission in the spring to examine the issue and craft a strategy to rejuvenate the system.
Its a fire bell clanging in the night, said Senate President Thomas V. Mike Miller Jr., D-Calvert and Prince Georges, addressing the commission at its first meeting. Its a cancer on our budget. It needs to be addressed.
(Excerpt) Read more at mddailyrecord.com ...
Someone on the PENSION roll ain’t going to get their money. Like Braniff Airlines. Zippo.
a trillion here and a trillion there and pretty soon we all go broke
Trying to lay the tech bubble on Bush? Nice try no biscuit.