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Checkmate for Pensions

Discussion in 'U.S. Politics' started by Stalin, Apr 9, 2009.

  1. Stalin

    Stalin Active Member

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    no tin foil here..no indeed...it only finance clerks who..er..made errors of judgement..

    "... The crisis facing pension plans for US state and municipal employees is deepening as investment losses deplete the resources of retirement funds for teachers, police officers, firefighters and other local government workers.

    The largest state and municipal pension plans lost 9 per cent of their value in the first two months of this year, according to data from Northern Trust. That followed a loss of 26 per cent in 2008. Smaller funds, which underperform the larger ones, lost more, experts say.

    The pension funds, which number 2,600 in total, hold more than $2,000bn after losses last year of close to $1,000bn.

    The losses have left retirement plans about 50 per cent funded – that is, they have only half the money needed to cover commitments to 22m current and former workers, experts say. State governments typically put the funding figures closer to 60-70 per cent, although most experts use different calculations.

    “There is a massive national underfunding problem,” said Orin Kramer, chairman of the New Jersey pension fund. ”

    Unlike company pension plans, state and municipal retirement funds have no federal guarantee fund. This has led to predictions of benefit cuts and possible federal intervention.

    “The federal government will get involved, without question,” said Phillip Silitschanu, analyst at Aite Group, a consultancy. “They could provide federal loans, or demand cutbacks as a condition of stimulus money, or there could be a federalisation of some of these pensions.”

    Without investment income, funds are liquidating assets at huge losses to pay pensions.

    Police pensions are in especially poor shape, in part because states have promised earlier retirement on full pensions, but seldom increased contributions...."

    http://pensionpulse.blogspot.com/2009/04/checkmate-for-pensions.html

    as well

    http://www.moneyshow.com/investing/blog.asp?aid=Blog-16035

    http://www.pensiontsunami.com/

    Another great public service from Comrade Stalin
     
  2. samsara15

    samsara15 Member

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    One more wonderful benefit brought to you by the advocates of unfettered capitalism! Save and invest your money so that the sharks on Wall Street, and those who run the banks, can steal it from you and provide themselves with generous financial golden parachutes.
     
  3. Dr.Who

    Dr.Who Well-Known Member

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    Um, it is the state pension plans that are in the most trouble.
     
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