Sunday, June 3, 2012

Public Pensions: Unsustainable

That Which is Unsustainable Will Go Away: Pensions « SGTreport: "Publicly funded pensions and Medicare are two examples of unsustainable systems that will go away in the decade ahead. . . . Whether we like it or not, or are willing to accept reality or not, unsustainable public pensions will go away. What makes “defined benefit” pensions unsustainable? 1) Promised cash/benefits packages that are not aligned with the fiscal realities of what can be contributed annually to the pension funds 2) New Normal low yields on low-risk investments and 3) skyrocketing costs of healthcare benefits. This is easily illustrated with basic math. Recall that defined pensions are not “pay as you go” plans like Social Security . . . "

Hogs at the Trough: Are You Listening?


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