Despite reducing pension benefits for their public-sector retirees and compelling workers to...

Despite reducing pension benefits for their public-sector retirees and compelling workers to make bigger contributions, states have cut just $100B of the $900B funding crater in their pension plans, the WSJ reports. One problem is that assumed investment returns have been reduced because of market volatility, while another is that many states are introducing the changes for new hires only.

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Comments (14)
  • lostalloncoal
    , contributor
    Comments (373) | Send Message
    Good job Obama. Senior sure do like you. Terrible to see how you are puppet of big medical insurance companies and started Obamacare; which is a scam by itself.


    Please drive whole nation bankrupt. Thats what you want to do. Your ant-constitutional EPA is costing economy more than half a TRILLION every year.
    23 Sep 2012, 05:17 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    Straight out of the textbook that he grew up being schooled on.

    23 Sep 2012, 07:47 AM Reply Like
  • surfnspy
    , contributor
    Comments (406) | Send Message
    Wow. What an insidious concept. Sucks to think that's what our top academics are dreamimg up. Thanks for the link.
    23 Sep 2012, 10:25 AM Reply Like
  • kitesurfer
    , contributor
    Comments (12) | Send Message
    Blaming it on Obama will not solve the problem. Republicans won't fix it either.
    23 Sep 2012, 09:15 AM Reply Like
  • Pwdrskir
    , contributor
    Comments (134) | Send Message
    Wisconsin is going to play out across the country. Dems, siding with Public Unions, will fight the private sector taxpayer.


    Obama will use the bully pulpit to denigrate the small business taxpayer once again by giving credit for building businesses to public union workers.
    “ If you've got a business—you didn't build that. Somebody else made that happen.” – Pres Obama Jul 15, 2012


    Oct. 19, 2011 Harry Reid (D-NV) said, “…it’s clear that Private sector jobs are doing just fine, it’s Public sector jobs where we’ve lost numbers…” YouTube


    June 8th, 2012, President Obama said, “…the Private sector is doing fine, where we’re seeing weaknesses in our economy has to do with state and local government…” YouTube
    24 Sep 2012, 11:45 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9903) | Send Message
    Well with interest rates near zero, thanks to Uncle Ben, it should be no surprise that pension funds, insurance companies, etc. are seeing decreased investment returns. After all they are required by law and some fiscal prudence to have certain levels of risk free investments in order to meet cash obligations. When you force them to earn negative returns on such investment, it should be no surprise that they cannot reduce funding shortfalls.
    23 Sep 2012, 01:45 PM Reply Like
  • Pwdrskir
    , contributor
    Comments (134) | Send Message
    $900B is nothing compared to what's coming.


    In GASBombed (Kevin D. Williamson):
    "...the Governmental Accounting Standards Board (GASB) is poised to blow a $3 trillion hole in the budgets of state and local governments."


    "State and local governments have, for the most part, woefully underfunded their employee-pension systems. As a result, they have massive unfunded liabilities for future pension payments — liabilities that total as high as $3 trillion, by some estimates. They can’t forgo writing those pension checks, they don’t have money set aside to cover those pension checks, and they are promising ever more generous pension checks in the future."


    "CalPERS, the gargantuan California public-sector pension system, managed to avoid making adequate pension contributions for years by convincing the state legislature (which was only too willing to be convinced) that the Dow would hit 25,000 in 2009. (It didn’t. And it also may not hit 28,000,000 by 2099, as CalPERS predicted.) The legislature used those numbers to justify an enormous increase in pension benefits for California’s public-sector parasites, at a theoretical cost of $0.00: “No increase over current employer contributions is needed for these benefit improvements,” the fairy tale went. Those who want a stronger government whip hand over the investment industry should consider how governments act when they are investors."

    23 Sep 2012, 02:39 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
    Who the f*ck runs these pension funds? They need some better fund managers.
    23 Sep 2012, 05:25 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9527) | Send Message
    Given that one pension fund in California returned a whopping 1%, this comes as no surprise. Many of these funds are established with the concept of returning a fixed percentage each year. Throw in a "managed" fund that comes in y/y at 1%, and you get major problems.


    "Assumed" investment return managers should have taken a lesson from Felix Unger years ago when he said:


    "When you assume, you make an ass out of u and me."
    23 Sep 2012, 03:31 PM Reply Like
  • Metals are Precious
    , contributor
    Comments (707) | Send Message
    We are passed the tipping point, way too much debt, start collecting your physical metals. Also make sure it is real as the NY POST reported 10 new bars have been proven fakes..Maybe the ETF'S OWN some of these as well!! Obama is a lock!


    Thats the major problem i have with our system. READ BELOW!


    In 1887 Alexander Tyler, a Scottish history professor at the
    University of Edinburgh, had this to say about the fall of the
    Athenian Republic some 2,000 years prior: "A democracy is always
    temporary in nature; it simply cannot exist as a permanent
    form of government. A democracy will continue to exist up until
    the time that voters discover that they can vote themselves generous
    gifts from the public treasury. From that moment on, the majority
    always votes for the candidates who promise the most benefits from
    the public treasury, with the result that every democracy will finally
    collapse over loose fiscal policy, (which is) always followed by a


    "The average age of the world's greatest civilizations from the
    beginning of history, has been about 200 years. During those 200
    years, these nations always progressed through the following sequence:


    From bondage to spiritual faith;
    From spiritual faith to great courage;
    From courage to liberty;
    From liberty to abundance;
    From abundance to complacency;
    From complacency to apathy;
    From apathy to dependence;
    From dependence back into bondage."
    The Obituary follows:


    Born 1776, Died 2012
    It doesn't hurt to read this several times.
    Professor Joseph Olson of Hamline University School of Law in
    St. Paul, Minnesota, points out some interesting facts concerning
    the last Presidential election:


    Number of States won by: Obama: 19 McCain: 29
    Square miles of land won by: Obama: 580,000 McCain: 2,427,000
    Population of counties won by: Obama: 127 million McCain: 143 million
    Murder rate per 100,000 residents in counties won by: Obama: 13.2 McCain: 2.1


    Professor Olson adds: "In aggregate, the map of the territory
    McCain won was mostly the land owned by the taxpaying citizens
    of the country.


    Obama territory mostly encompassed those citizens living in low
    income tenements and living off various forms of government


    Olson believes the United States is now somewhere between the
    "complacency and apathy" phase of Professor Tyler's definition of
    democracy, with some forty percent of the nation's population
    already having reached the "governmental dependency" phase.


    If Congress grants amnesty and citizenship to twenty million
    criminal invaders called illegal's - and they vote - then we can say
    goodbye to the USA in fewer than five years
    23 Sep 2012, 10:05 PM Reply Like
  • Pwdrskir
    , contributor
    Comments (134) | Send Message
    Snopes calls your post into question Metals are Precious. It's sad that people push this false info around.

    24 Sep 2012, 12:58 PM Reply Like
  • Metals are Precious
    , contributor
    Comments (707) | Send Message


    Thanks for finding this out...


    24 Sep 2012, 01:36 PM Reply Like
    , contributor
    Comments (5) | Send Message
    The situation is mathematically hopeless and NOBODY can fix it. It's much like quicksand. Your efforts just make a bad situation worse. Nature has an out, but it won'ts be pretty.
    24 Sep 2012, 12:43 AM Reply Like
  • Pwdrskir
    , contributor
    Comments (134) | Send Message
    This is what Dems do to economies under their watch.


    California Debt Higher Than Earlier Estimates, a Task Force Reports - NYT


    "The task force estimated that the burden of debt totaled at least $167 billion and as much as $335 billion."


    "Its members warned that the off-the-books debts tended to grow over time, so that even if Mr. Brown should succeed in pushing through his tax increase, gaining an additional $50 billion over the next seven years, the "wall of debt" would still be there, casting its shadow over the state."

    24 Sep 2012, 01:14 PM Reply Like
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