Someone Is Reading the Numbers

Today’s Washington Post talks about the real problems that state and local pension systems face in light of the massive losses of the last downturn. The story talks about the stark choices facing pension systems throughout the country.

The upheaval on Wall Street has deluged public pension systems with losses that government officials and consultants increasingly say are insurmountable unless pension managers fundamentally rethink how they pay out benefits or make money or both.

Within 15 years, public systems on average will have less half the money they need to pay pension benefits, according to an analysis by Pricewaterhouse Coopers. Other analysts say funding levels could hit that low within a decade.

After losing about $1 trillion in the markets, state and local governments are facing a devil’s choice: Either slash retirement benefits or pursue high-return investments that come with high risk.

The story is a good one that details the severe problems facing cities and towns. With steep pension losses Massachusetts communities will be faced with huge bills that will force them to decimate existing services in order to fund these obligations.

Read the Washington Post story here.

This entry was posted in Methuen, Municipal Finance, National News, State News and tagged . Bookmark the permalink.

1 Response to Someone Is Reading the Numbers

  1. Jules Gordon says:

    Your Honor,
    Overgenerous Public employee pensions are policies that should never been enacted. So, because of extensive political mismanagement, from which they have benefited by maximizing their own take,the public his now at risk now that the chickens have come home to risk.

    Do you think there will be an Obama pension czar who will penalize all the publicly elected politicians by cutting their salaries and seizing all their assets derived from their ill gotten gains and use the bounty to pay off the debt, thereby saving the taxpayer?

    Will Obama’s Attorney General start an investigation into the matter? Will the brilliant state representative call a halt to his witch hunt for insurance companies who have profited from the slave trade, now redirect his energy to find the culprits who scammed their constituents, going all the way back to colonial times and seize their assets?

    Nah. Working Families and pensioners will take it on the chin.

    Well now we know why POLITICIAN is the only occupation (beside used car salesmen) that is a pejorative.

    Any more good news?

    Jules

    Like

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