Friday, September 21, 2012

Do You Want to Pay $9,000 for Someone Else's Pension?

The following article about Canada--same situation applies here in the U.S.--unfunded public pension liabilities:

Dan Kelly: Do You Want to Pay $9,000 for Someone Else's Pension?: "Imagine it's March, 2013 and you discover to your considerable horror that you must pay the government $9,000 in addition to the taxes you normally fork over. If every other Canadian made the same discovery, it's no small exaggeration to suggest there would be riots in the streets and governments would quickly find themselves out of office. Sounds pretty far-fetched, doesn't it? Well, you and I, and every other man, woman and child in Canada are each on the hook for an extra $9,000 to pay for the $300 billion (or more) in promises to public sector pension plans that governments don't have the money to pay. That's according to an excellent report, Canada's Hidden Unfunded Public Sector Pension Liabilities, by CFIB's chief economist, Ted Mallett."

Unfunded public pension liabilities in the U.S.? Just the states and local governments have at least 2 trillion dollars of unfunded public pension liabilities--

U.S. munis face $2 trillion in unfunded pension costs | Reuters: "U.S. states and localities have run up more than $2 trillion of unfunded pension liabilities, Moody's Investors Service said on Monday, citing data on plans offered by 8,500 local governments and over 14,000 individual entities.The Wall Street credit agency said that according to its estimate, the total liabilities for fiscal 2010 were more than three times the amount reported by local governments."


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