States Are Running Out of Money... (economy, Illinois, good news, retirement)

[Aeran]

...to Pay Their Public Employee Pensions


https://www.msn.com/en-us/money/mark...tandhp&ffid=gz

Pew says that pension funds were well-funded until about 2000. Around that time, many states increased pension benefits without a way to pay for them. In some states, such as California and Illinois, courts usually find that the government must honor those commitments.

Also in the early 2000s, the tech stock bubble burst, spiraling investment returns downward. Some states, such as New Jersey, made things worse by skimping on their contributions.

Colorado, Connecticut, Illinois, Kentucky and New Jersey had less than half the assets they needed to meet their obligations, according to the report.

Just four states — New York, South Dakota, Tennessee and Wisconsin — had at least 90 percent funding. Draine said those states and some others that have repaired pension shortfalls since the Great Recession will be in better shape the next time the economy slides.

Somewhat good news for New Yorkers...

[BBMW]

At some point a lot of states and municipalities are going to be defaulting on their pension obligations. And at some point Social Security is going to run out of money. At some point retirement is not going to be looking so goo.