Skip to comments.Republicans draw attention to public pension gaps (shortfall $600 billion to $3 trillion)
Posted on 12/10/2011 7:33:21 AM PST by Libloather
Republicans draw attention to public pension gaps
Reuters Thu, Dec 8, 2011
WASHINGTON (Reuters) - Republicans in Congress on Thursday sought to shift attention back to public pension shortfalls, with estimates of the total deficit ranging from $600 billion up to $3 trillion.
Leaders on a joint congressional committee on the economy are releasing a series of reports on states' struggles to cover the costs of pensions for future retirees.
"States are already $3 trillion in the red, a crisis four times larger than the Wall Street bailout," said Sen. Jim DeMint of South Carolina, who released the report with Kevin Brady, a Representative from Texas.
Differences in the estimated gaps spring from varying investment return projections.
DeMint hinted legislation on pensions may be coming soon.
(Excerpt) Read more at news.yahoo.com ...
Most pensions budget for 8 percent, a return closer to historical averages and one that allows governments to make smaller contributions than the lower 4 percent.
The Republican report also criticized current accounting standards saying that "if states were forced to use private sector market value liabilities, their projected unfunded liabilities would rise exponentially over time."
"Current accounting methods assume pension funds can earn high investment without risk, typically 8 percent. When pension liabilities fall short, taxpayers are required to make up the undisclosed difference," it added.
While almost all pensions have enough money to cover the benefits of current retirees, some are already struggling. The city of Central Falls in Rhode Island was recently felled by its pension obligations and filed for bankruptcy.
Forget about the grandkids. This problem will hit much earlier than that with the 10,000 a day baby boomers retiring every day for the next 20 years. The bill will hit most current taxpayers.
Obummer is the all powerful Whiz!
State and Local State and Local State and Local State and Local State and Local State and Local
A taxpayer is a taxpayer and a consumer whether we are talking about federal, state, or local. We bear the brunt of government policies regardless, sometimes as a taxpayer, sometimes as a consumer but most of the time as both.
STATE AND LOCAL STATE AND LOCAL STATE AND LOCAL
Some people buy steak and others buy salmon. Steak and salmon are different. We all bear the brunt of grocery store policies regardless, sometimes as a customer for steak and sometimes as a customer for salmon, but sometimes for both.
STATE AND LOCAL.
If nothing else, the Obama spending spree has changed the conversation to the dangers that government spending has/is causing. Untli now it’s been reassurances that Uncle Sugar would take care of everyone and now it’s a look at the reality.
Let ALL the pensions go feet up... ALL OF THEM..
A smart republican would do things to force them to go feet up quickly..
America can only recover AFTER the bankrupcy(S) HAPPEN..
To me, that seems a clear violation of the 10th Amendment. It may have a tangential relationship to inter state commerce because investments may be in other states but it seems clear that the problems are state problems, not federal problems. The same is true of speed limits, smoking laws, liquor laws, etc.
new employees can get a little extra stipend for their own private 401's...
all these cities and states "cutting" the good public services like parks and libraries so they can keep sending their youngish retirees off to nirvana land must stop....now..
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