Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

$5 Trillion Price Tag For Public Pensions

Friday, November 9, 2012 - 1:20 PM
From US News
As strapped state and local governments scramble for ways to balance their budgets, it's become very clear that it will be impossible for many to honor their pension promises to new employees and even current retirees.

Read more

Not only will this issue have effects on taxpayers, but as Allan Roth describes in this CBS News article, this pension risk could have a serious impact on muni bonds.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Friday, November 9, 2012 - 2:50 PM
 Bankrupt San Bernardino halts payments to CalPERS pension fund
Bankrupt San Bernardino halts payments to CalPERS pension fund -
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,614
2. Saturday, November 10, 2012 - 9:00 AM
The one good thing I read in the article is that this does not (at this time) affect retiree payments. This is why I feel  if  these retirees had the option to take their pensions in a lump sum they should have taken it and not depend on the state for the future of their benefits.  Any retiree who has the lump sum option and still leaves their money in the hands of the state or their companies is just looking for problems, imo.  I'd rather have the money in a 2% CD of my own choosing than no money at all.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,151