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I believe public pensions should not be put at risk in the Stock market or any other private sector involvement. It should be set up where current payments are covered by current income. This would eliminate the risk of a market crash destroying the futures of people that never wanted to "invest in the market" or anywhere else beyond a long term savings account in a local bank. Public employees generally accept lower wages in return for health insurance, job security and a decent pension. Their employers with the problem pension systems have simply been cheating.
Some pension funds are indeed in serious trouble, but this article is heavily biased. Meredith Whitney has been predicting widespread municipal and state bankruptcies for quite some time now, to the extent that her career is VERY heavily invested in that outcome.
Glenn Hubbard, the other person quoted here, is more of your garden-variety pro-banking slimeball.
I believe public pensions should not be put at risk in the Stock market or any other private sector involvement. It should be set up where current payments are covered by current income. This would eliminate the risk of a market crash destroying the futures of people that never wanted to "invest in the market" or anywhere else beyond a long term savings account in a local bank. Public employees generally accept lower wages in return for health insurance, job security and a decent pension. Their employers with the problem pension systems have simply been cheating.
OK .....
1. no stock market
2. fund with current income
3. interest from a savings account
question ....
What kind of "current income"?
You do know that savings accounts are at close to zero interest and have been for years - this is part of the reason for the high stock-market. It's the only way to keep up with inflation and earn money on your savings.
It's not the fault of the Stock Market that Pension Managers and Government officials have lied about the rates of return for years. It's the fault of the employees and Union leadership for letting them get away with these lies.
According to CPER, the "unfunded liabilities are 0.22 percent of projected GDP over the next 30 years." That is hardly a crisis.
Moreover, they are unfunded because politicians decided not to fund promises that they already made so they can keep taxes low or divert the money to pet projects.
Smashing all the unfunded liabilities into one bucket to produce an apparently nice number vs. GDP doesn't help the states that have a big problem, does it?
Tax reform involving raising taxes on the upper class and wealthy corporations, getting rid of flat/regressive tax rates, and working together as a nation will solve our fiscal problems, not the me-first, screw everyone else mentality of the Republican Party. The right is trying to destroy the lives of public employees in the same manner as they attack the poor. Domestic enemies.
I believe public pensions should not be put at risk in the Stock market or any other private sector involvement. It should be set up where current payments are covered by current income. This would eliminate the risk of a market crash destroying the futures of people that never wanted to "invest in the market" or anywhere else beyond a long term savings account in a local bank. Public employees generally accept lower wages in return for health insurance, job security and a decent pension. Their employers with the problem pension systems have simply been cheating.
I disagree. I believe that public sector wages and benefits should reflect those of the average taxpayer. I never wanted to be forced to wear cheap safety glasses where I work. I have the option of buying quality ones instead. I buy quality.
Private sector employees don't get a whole lot of options or choices in their benefit or retirement packages, why should public sector be any different? I think in light of the fact that it is tax dollars that pay for public sector employees that perhaps it should be put to a vote.
I believe public pensions should not be put at risk in the Stock market or any other private sector involvement. It should be set up where current payments are covered by current income. This would eliminate the risk of a market crash destroying the futures of people that never wanted to "invest in the market" or anywhere else beyond a long term savings account in a local bank. Public employees generally accept lower wages in return for health insurance, job security and a decent pension. Their employers with the problem pension systems have simply been cheating.
The funds must be invested in something though.
They should be invested in Muni bonds.
The very public unions who want to collective bargain against the taxpayer should have their pension invested in the very securities backed by the faith and credit of their employer like many private sector American workers do.
OK .....
1. no stock market
2. fund with current income
3. interest from a savings account
question ....
What kind of "current income"?
You do know that savings accounts are at close to zero interest and have been for years - this is part of the reason for the high stock-market. It's the only way to keep up with inflation and earn money on your savings.
It's not the fault of the Stock Market that Pension Managers and Government officials have lied about the rates of return for years. It's the fault of the employees and Union leadership for letting them get away with these lies.
Don't expect to win arguments with lefties using facts.
The funds must be invested in something though.
They should be invested in Muni bonds.
The very public unions who want to collective bargain against the taxpayer should have their pension invested in the very securities backed by the faith and credit of their employer like many private sector American workers do.
It would be similar to ESOP plans.
They wouldn't consider it.
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