Saturday, July 28, 2012

The Public Pension Crisis--does Obama have a clue?

When's the last time you heard Obama talk about the public pension crisis in this country? Probably never--does he not care? Or is it just more "amateur" hour?

Public Pension Crisis is Worse Than You Thought - Independent Voter Network: "Public pensions, under rules established by the Government Accounting Standards Board can discount based on what they assume their expected rate of return to be. This is generally between 6-8%, and number many financial analysts find to be laughably high. By contrast, private pensions use a fair-value method which produces a much low discount rate. This means they need to have much more money on hand. This is not a “he said, she said” argument; while public pensions are following GASB rules in calculating their liabilities, nearly all disinterested outside observers have concluded that these rules seriously understate pension’s true benefit liabilities. Public pensions are guaranteed by governments. If a public pension is in financial trouble and cannot meet obligations then taxpayers will be forced to make up the difference. This directly impacts all of us."


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