Researcher and Writer in Washington, DC

The exasperating politics of pensions and trust funds

Across the United States, myriad pension and trust funds are in trouble. Serious trouble.

The U.S Postal Service’s retiree health benefits fund is underfunded by $70 billion and will be depleted in 10 years. In Illinois, the state’s teacher pension fund is 60 percent underfunded. Kentucky’s public pension is so underfunded that some employers have to fork out an 85 percent premium on payroll — meaning, as the Economist reports, “employing someone on $50,000 a year requires an extra $42,500 of contributions.” Meanwhile, Rhode Island’s Providence Employee Retirement System is way underwater and will be tapped out in 15 years…. (Read more)

Related Posts Plugin for WordPress, Blogger...
Similar posts
  • The Postal Service’s $130 billion pro... The United States Postal Service has many troubles. Mail volume has plunged more than 30 percent since 2007. The agency, which was designed to be self-funding, has run deficits for many years. And earlier this year, the postmaster general told Congress the agency would run out of cash in 2024. If that happens, the USPS [...]
  • Elizabeth Warren declares war on char... Last month, Elizabeth Warren paid a visit to the National Education Association (NEA). She was doing what candidates always do: hunting for votes. So one can understand why she was there and why she wanted to please the union. But her comments on charter schools were an affront to any parent or anyone who cares [...]