The Next Trillion Dollar Hole That Washington Will Be Forced To Fill
Is it time to require the taxpayer to bailout city and state pension funds across the country?
Poor management, the stock market drop and worst of all built growth projections that were not only unrealistic but pure fantisty, should more than qualify these funds for prudent taxpayer money!
I understand that the City of San Diego will have to triple payments to it's pension system to stay on funding projections.
The largest public pension fund in the country, the California Public Employees Retirement System, has built in 7.75%-8% into its projections…and has not done better than 3.32% in recent memory. Except for 2008, when it lost 27%. Look at the Teacher Retirement System of Texas – the seventh largest pension fund in the country – expects to make 8% off its endowment. In reality, it has been making 2.6% for over a decade.
In Chicago, I am told, the local transit authority has a $1.5 billion shortfall with its pension fund as of 2007. After the stock market fall in 2008, this shortfall could easily now be approching $3 billion.
With the outstanding job being done with these government run pension funds, it would seem certain the government will do a simular laudable job managening a new universal health care plan.
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4 Comments
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Even if the market bounces back, the required contribution by the County will have to triple over the next five years.
The hard reality is this: current benefits are not sustainable…
Texas lawyers
If I predict recession every year I will get it right eventually. My understanding of economics is that something either goes up or it goes down. There are 50-50 odds to guess right. Some may guess 60% right but will eventually revert back to the mean. It’s too bad this is a time when the system has been raped for every nickel and dime for the next few years.
Tijuana Mexico dentist
Mark these words, it will be much worse that the ‘73-’75 recession, it will very likely be worse than the Great Depression, but will be a depression, a real depression. A morning’s worth of true, overall. Thoughtful research will convince anyone willing to face the truth.
San Diego real estate agents
The downturn during the 1970s was caused primarily by Richard Nixon’s faulty economic policy. Among other things the imposition of widespread wage and price controls caused the extended recession of the 1970s we refer to today as stagflation. Oil prices played a role but it was the government’s response that truly put the United States over the edge. Unless the Government takes draconian measures like Nixon did to insulate the economy it doesn’t make sense to compare today’s situation to that of the 1970s.
Hoodia Diets