Cities borrowing from their own pension funds, where is this leading (federal, states)

[mountainrose]

Mircea,

I had no idea about the PBGC---is it the same set up as AIG was? And if so, wasn't AIG allowed to not have the adequate funds to cover the insurance payout-funding, so that when things crashed AIG didn't have the equity to pay out---may happen to PBGC if they don't have the funds to cover all these pension programs going under, even at the discounted amount.

[HappyTexan]

Originally Posted by TuborgP

We are on the same side I just accept fully the fiscal hole and political dynamics at work in our society and the implications of them if things aren't changed. So prisons and schools go unfunded so pensioners get their checks and tax payers stay in state and ............

What has happened so far is that cities have declared bankruptcy and then no one gets their pension money or pensions are reduced.

Prichard, Alabama (they have no money to pay pensions)
Central Falls, Rhode Island (talked of a 50% cut to public pensions)
Vallejo, California (reduced penion beneifts)
Harrisburg, PA (big cuts to pensions)

Just a few I found with google.

[newenglandgirl]

Originally Posted by Mircea

Let the new class warfare begin: The Pension Class versus The Taxpayers.

Refereeing tonight's match...

Mircea

Yeah, if I ever moved back to Missoura I sure as heck wouldn't want to be subsidizing Curmudgeon's cushy lifestyle down in the Aux-Arcs

[newenglandgirl]

On a serious note, I'm trying to grasp the overall picture for retirees and future generations in terms of my pet peeve, property taxes (the ones that don't just go up slowly over time, but skyrocket). Looks like a burden many will not be able to handle.

[newenglandgirl]

Originally Posted by Curmudgeon

Absurd! Members of the "pension class" worked, paid taxes, in most instances contributed to their retirement funds and I doubt as taxpayers they are going to make war on their own class.

As did people of the "social security class," lest we forget.

[Curmudgeon]

Originally Posted by newenglandgirl

Yeah, if I ever moved back to Missoura I sure as heck wouldn't want to be subsidizing Curmudgeon's cushy lifestyle down in the Aux-Arcs

Move to California, the state I retired from. They'll be more than happy to take most of your money and I'll send ya a nice Thank You note.

Originally Posted by newenglandgirl

As did people of the "social security class," lest we forget.

I mentioned that!

[texdav]

I would be more worried about the huge increase in state funding needed to support the shyrocketing increase numbers on medicaid under Obama care starting in 2017. If it holds up ony Nebraska will be spared as Nelson(D) got a exemption for his state saying it would bankrupt the state.

[Curmudgeon]

Originally Posted by HappyTexan

What has happened so far is that cities have declared bankruptcy and then no one gets their pension money or pensions are reduced.

Prichard, Alabama (they have no money to pay pensions)
Central Falls, Rhode Island (talked of a 50% cut to public pensions)
Vallejo, California (reduced penion beneifts)
Harrisburg, PA (big cuts to pensions)

Just a few I found with google.

Not so. They can only reduce or do away with pension payments going forward. The cannot touch the benefits earned by the already retired.

[newenglandgirl]

Originally Posted by Curmudgeon

Move to California, the state I retired from. They'll be more than happy to take most of your money and I'll send ya a nice Thank You note.

Oops, I meant if I ever moved to California...

By the way, how is CA's economy now, is it picking up any, or still dismal?

Seems like the coastal and more northern cities have a lot of liability, from overspending.

[Curmudgeon]

Originally Posted by newenglandgirl

Oops, I meant if I ever moved to California...

By the way, how is CA's economy now, is it picking up any, or still dismal?

Seems like the coastal and more northern cities have a lot of liability, from overspending.

Suffice it to say it's still the Land of Fruits and Nuts. 'Nuff said!