U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-20-2010, 08:21 AM
 
Location: Sitting on a bar stool. Guinness in hand.
4,429 posts, read 5,959,683 times
Reputation: 1713

Advertisements

http://finance.yahoo.com/tech-ticker/11-state-pension-funds-that-may-run-of-out-money-535516.html?tickers=^dji,^tnx,^gspc,spy,dia

Quote:
11 State Pension Funds that May Run Out of Money
Posted Oct 18, 2010 03:50pm EDT by Gus Lubin in Investing, Recession, Election
Related: ^dji, ^tnx, ^gspc, spy, dia
ShareretweetEmailPrint
Provided by The Business Insider, October, 18, 2010:

Here's a shocker: The most immediate state pension crises aren't in New York or California. They're in Middle America.

When it comes to state pensions in the most trouble, do places like New Hampshire come to mind? Probably not, unless you live there, and maybe not even then.

After all, it makes sense that the biggest, most populous members of the union, where budget follies are fairly common, would be facing the most urgently needed fixes. The truth is considerably different. The Granite State claims the No. 11 slot, and it's not the only unexpected name facing pension woes.

Hawaii, Kansas and others made their way on to the list. Now, these pension plans aren't going to be obliterated tomorrow -- New Hampshire, for instance, is estimated to see its plan run out of money in 2022, so they've got 12 years to rectify the situation.

For some other states, the matter is more pressing, and no more so than for the Land of Lincoln.

Illinois is just 8 years away from exhausting its pension fund and creating a yearly $14 billion hole, according to data from Joshua Ruah an associate professor of finance at the Kellogg School of Management at Northwestern University.

That's a projected 32 percent of the state's revenue going to fill a pension hole. Every year.

Indiana, Louisiana, Oklahoma and Colorado are among the next pension funds to fall. The rest of the union is just around the corner.

But wait. Just to make sure the list is not a complete surprise, know that the New York City suburbs of Connecticut and New Jersey made it on board. They have until 2019 to sort it out.

And Now, 11 State Pension Funds That May Run Out of Money

#1 Illinois

Year pension fund runs out: 2018

Bill in the following year: $13.6 billion

Share of state revenue: 32%

#2 Connecticut

Year pension fund runs out: 2019

Bill in the following year: $4.9 billion

Share of state revenue: 27%

#3 Indiana

Year pension fund runs out: 2019

Bill in the following year: $3.6 billion

Share of state revenue: 17%

#4 New Jersey

Year pension fund runs out: 2019

Bill in the following year: $14.4 billion

Share of state revenue: 34%

#5 Hawaii

Year pension fund runs out: 2020

Bill in the following year: $1.7 billion

Share of state revenue: 24%

#6 Louisiana

Year pension fund runs out: 2020

Bill in the following year: $4.3 billion

Share of state revenue: 27%

#7 Oklahoma

Year pension fund runs out: 2020

Bill in the following year: $3.7 billion

Share of state revenue: 30%

#8 Colorado

Year pension fund runs out: 2022

Bill in the following year: $7.8 billion

Share of state revenue: 54%

#9 Kansas

Year pension fund runs out: 2022

Bill in the following year: $2.5 billion

Share of state revenue: 23%

#10 Kentucky

Year pension fund runs out: 2022

Bill in the following year: $5.3 billion

Share of state revenue: 35%

#11 New Hampshire

Year pension fund runs out: 2022

Bill in the following year: $1.0 billion

Share of state revenue: 30%




Hmmmm......most of these state I wouldn't have though were in as rough of shape as some other, more talked about states. Well you learn something everyday.

Last edited by baystater; 10-20-2010 at 08:29 AM..
Rate this post positively Reply With Quote Quick reply to this message

 
Old 10-20-2010, 08:56 AM
 
Location: Niceville, FL
9,412 posts, read 18,006,713 times
Reputation: 11126
At least in Florida, there's effectively a wall between the state pension plan and general state government spending and the state can't retake money and use it elsewhere once it is placed into the pension plan. So one or two bad years of state budget don't have that much of an impact on the pension funds since they're somewhat isolated.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-20-2010, 11:10 AM
 
Location: Ohio
22,798 posts, read 16,051,336 times
Reputation: 19294
Quote:
Originally Posted by baystater View Post
Hmmmm......most of these state I wouldn't have though were in as rough of shape as some other, more talked about states. Well you learn something everyday.
It's just another unfunded mandate that the tax payers will ultimately end up paying.

The S&P 500 have more than $500 Billion unfunded in their pension plans. If they go belly up, then the Pension Guaranty Corporation steps in.

The pension plans are outrageous anyway. For the majority of states, 30 years of service nets you more than 50% - 75% of your ending salary as your retirement pension, and they contribute practically nothing to their benefits.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-20-2010, 04:43 PM
 
Location: Near a river
16,042 posts, read 20,134,881 times
Reputation: 15735
What about California? I would have thought, with all the fiscal trouble there, they'd be near the top.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-20-2010, 08:34 PM
 
Location: Great State of Texas
86,068 posts, read 77,025,502 times
Reputation: 27653
Quote:
Originally Posted by newenglandgirl View Post
What about California? I would have thought, with all the fiscal trouble there, they'd be near the top.
California already ran out..they have a $75 billion shortfall.

Trouble Brewing: The Disaster of California State Pensions | The Foundation For Educational Choice
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-20-2010, 08:52 PM
 
20,194 posts, read 21,624,204 times
Reputation: 9235
Gosh, sure does make government jobs look very lucrative... the states mentioned above are either very liberal or very corrupt... so it doesn't surprise me at all that they are at the top of the lists...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-20-2010, 10:56 PM
 
Location: Los Angeles area
14,017 posts, read 18,958,517 times
Reputation: 32450
Quote:
Originally Posted by HappyTexan View Post
No California has not "already run out". The shortfall is in future unfunded liabilities. California has the money to continue to pay for the next 20 years. (Note I am talking about the state of California. Various cities and counties within the state, which have their own retirement systems, could be on the brink.)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-21-2010, 09:10 AM
 
13,723 posts, read 24,030,065 times
Reputation: 14057
Quote:
Originally Posted by evilnewbie View Post
Gosh, sure does make government jobs look very lucrative... the states mentioned above are either very liberal or very corrupt... so it doesn't surprise me at all that they are at the top of the lists...
I can't speak for the others but NH is neither; they are the epitome of the conservative movement. Or generally have been until late. There is no sales or income taxes in NH and they HATE to spend $$ there, my guess is they need to raise taxes but keep voting it down.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-21-2010, 04:38 PM
 
Location: Texas
2,847 posts, read 2,139,957 times
Reputation: 1754
Recent studies estimate California has $500 billion in unfunded pension liabilities, not to mention over $50 billion in unfunded retiree health care liabilities.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-31-2010, 11:15 PM
 
4,711 posts, read 11,529,300 times
Reputation: 3789
Quote:
Originally Posted by evilnewbie View Post
... the states mentioned above are either very liberal or very corrupt...

Very corrupt.

Our new Republican governor in Virginia "balanced" the current State budget by stealing 600+ million dollars from the pension fund. A few more years of that crap ought to put VA on this list. I wonder if these States' pension funds have also been looted?

Wow, California has "unfunded retiree health care liabilities"??? VA sure doesn't have that problem....when you retire you pay your ENTIRE health care premium costs. In some cases, these costs eat up the entire pension benefit. Yeah, that's lucrative!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top