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America’s Pension Bomb

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  • America’s Pension Bomb

    America’s Pension Bomb: Illinois Is Just the Start

    EXCERPT:
    We’ve been hearing it for years: America’s public pensions are a ticking time bomb.
    Well, at long last, the state of Illinois is about to expose just how big this blowup could be.
    As of the 2015 fiscal year, Illinois had promised its employees $199 billion in retirement benefits. Right now, it’s $119.1 billion short.
    That gap lies at the center of a years-in-the-making fiscal mess that’s threatening to drop the state’s credit rating to junk-bond status.
    But Illinois is hardly alone. Connecticut and New Jersey—states that, to most of the world, seem like oases of prosperity—are under growing financial strain, too.
    We’ve ranked the states by the size of their funding gap.

    ...
    http://www.msn.com/en-us/money/retir...FH7?li=BBnbfcN


    Promising what you don't have to those of the Present, expecting to rob from those of the Future ~ usually don't work.


    TANSTAAFL
    TANSTAAFL = There Ain't No Such Thing As A Free Lunch

  • #2
    A Related Facet

    50 worst cities to live in

    http://www.msn.com/en-us/money/reale...RM1?li=BBnb7Kz
    TANSTAAFL = There Ain't No Such Thing As A Free Lunch

    Comment


    • #3
      The states are hoping they can run the same scam as Social Security is running. For years Social Security pulled in more money than it paid out. What did Congress do with the surplus? They spent it and left IOU's to cover the "loan". They also expect a lot of federal help!

      The first thing they should stop paying is all the pensions to government officials. Most never paid in the full amount anyways. Federal employees should also share the pain.

      Pruitt
      Pruitt, you are truly an expert! Kelt06

      Have you been struck by the jawbone of an ASS lately?

      by Khepesh "This is the logic of Pruitt"

      Comment


      • #4
        And more ...
        Illinois Blows Budget Deadline, Pushing Closer to Junk Rating...

        NJ, Maine Shut Down Govts Amid Impasses...
        TANSTAAFL = There Ain't No Such Thing As A Free Lunch

        Comment


        • #5
          One of the problems facing much of the Western World is that when the actuaries (an actuary is someone who found accounting too exciting) did the sums when many pension schemes were established life expectancy was quite a bit lower than it turned out to be in reality. People just live longer and draw more pension as a result. Black holes are opening up in pension schemes all over the world and not just in the public sector. One reason why retirement age is rising over here and perhaps it may do in the USA as well.

          In Britain we had once a politician called Boothby who suggested that the state could save money by handing out free booze and fags to all of pensionable age!
          Human history becomes more and more a race between education and catastrophe (H G Wells)
          Mit der Dummheit kaempfen Goetter selbst vergebens (Friedrich von Schiller)

          Comment


          • #6
            Originally posted by G David Bock View Post
            America’s Pension Bomb: Illinois Is Just the Start

            EXCERPT:
            We’ve been hearing it for years: America’s public pensions are a ticking time bomb.
            Well, at long last, the state of Illinois is about to expose just how big this blowup could be.
            As of the 2015 fiscal year, Illinois had promised its employees $199 billion in retirement benefits. Right now, it’s $119.1 billion short.
            That gap lies at the center of a years-in-the-making fiscal mess that’s threatening to drop the state’s credit rating to junk-bond status.
            But Illinois is hardly alone. Connecticut and New Jersey—states that, to most of the world, seem like oases of prosperity—are under growing financial strain, too.
            We’ve ranked the states by the size of their funding gap.

            ...
            http://www.msn.com/en-us/money/retir...FH7?li=BBnbfcN


            Promising what you don't have to those of the Present, expecting to rob from those of the Future ~ usually don't work.


            TANSTAAFL
            It is worse than promising what you don't have. It is theft and fraud.
            The scam can be lad at the feet of Illinois House leader Mike Madigan. A dem.
            He has a super majority and has essentially run the state for 20 years.

            I take issue with the "promising what you don't have" and will explain.
            I am in one of the Illinois l pension systems.
            The State takes 11% of my salary to pay for my pension.
            Then, rather than put that money into the pension system, they give me an IOU for my own money and spend it on other things.
            They pull the same fraud with all the other pension systems.

            I am not a financial expert, but have been told by one that my 11% contribution should just about completely pay for my pension.
            A pension is supposed to be funded to meet 80% of its obligations to be considered viable. The old Wrigley gun company pensions, for instance, were funded about 95%. Several years ago, the State told me my pension was 28% funded (with my money) the last time I asked what the number was, they refused to tell me.

            The Illinois dem party, which claims to be a friend to the unions already tried to screw the teachers out of their pensions. The Illinois Supreme Court ruled against that nonsense. If the dems here are going to screw their most loyal supporters, what chance does anyone else have.

            They now want another tax hike to pay for the pensions. The last time they did that, they spent the extra money elsewhere.
            Avatar is General Gerard, courtesy of Zouave.

            Churchill to Chamberlain: you had a choice between war and dishonor. You chose dishonor, and you will have war.

            Comment


            • #7
              According to the map, looks like I'm good. Everyone should be like "backwards, redneck NC" then. 95.5 percent funded, and we're at the point with LEO retirement that there's been talk of lowering the retirement age.
              Tacitos, Satrap of Kyrene

              Comment


              • #8
                Originally posted by Cambronnne View Post
                It is worse than promising what you don't have. It is theft and fraud.
                The scam can be lad at the feet of Illinois House leader Mike Madigan. A dem.
                He has a super majority and has essentially run the state for 20 years.

                I take issue with the "promising what you don't have" and will explain.
                I am in one of the Illinois l pension systems.
                The State takes 11% of my salary to pay for my pension.
                Then, rather than put that money into the pension system, they give me an IOU for my own money and spend it on other things.
                They pull the same fraud with all the other pension systems.

                I am not a financial expert, but have been told by one that my 11% contribution should just about completely pay for my pension.
                A pension is supposed to be funded to meet 80% of its obligations to be considered viable. The old Wrigley gun company pensions, for instance, were funded about 95%. Several years ago, the State told me my pension was 28% funded (with my money) the last time I asked what the number was, they refused to tell me.

                The Illinois dem party, which claims to be a friend to the unions already tried to screw the teachers out of their pensions. The Illinois Supreme Court ruled against that nonsense. If the dems here are going to screw their most loyal supporters, what chance does anyone else have.

                They now want another tax hike to pay for the pensions. The last time they did that, they spent the extra money elsewhere.
                I'm in a public pension system myself. When I tell people that, a lot of them act as if I'm stealing money from them. That's not the case. A pension is my money, that I let my employer set aside for me, like a savings plan. Instead of my employer paying me that $100 a week, or whatever it is, I let them put it into, what is in effect, a savings account, it gains interest over the years, and when I retire, I can draw out of it.

                The problem with the short fall in the public pensions systems is not the fault of the people in those public pension systems. The fault lies both with the the politicians who robbed from those systems to buy the votes of their electorate, and the people who elected those politicians because of all the freebies they were promised....paid for in part by money from those pension systems.

                Comment


                • #9
                  Originally posted by phil74501 View Post
                  I'm in a public pension system myself. When I tell people that, a lot of them act as if I'm stealing money from them. That's not the case. A pension is my money, that I let my employer set aside for me, like a savings plan. Instead of my employer paying me that $100 a week, or whatever it is, I let them put it into, what is in effect, a savings account, it gains interest over the years, and when I retire, I can draw out of it.

                  The problem with the short fall in the public pensions systems is not the fault of the people in those public pension systems. The fault lies both with the the politicians who robbed from those systems to buy the votes of their electorate, and the people who elected those politicians because of all the freebies they were promised....paid for in part by money from those pension systems.
                  I agree completely. I'm in the same boat. I have other investments but my pension is a good chunk of my retirement.

                  Comment


                  • #10
                    The sins of our fathers. When you export your pollution and slave labor I suppose you deserve what you get.

                    For years I have been trying to explain to people that capital and wealth are distinct. Capital=control, wealth=material well-being. If you confuse the two intentionally most likely you end up with all sorts of ponzi schemes and a lot of cognitive dissonance and really bad policy. The EU is a prime example of a system dependent on financial institutions that exert extreme control without adding materially to the world's wealth. Germany now seems posed to do what it couldn't do in two World Wars by means of a type of economic warfare. Britain is once again the last remaining bastion of liberal democracy it would seem. The U.S. in order to temporarily maintain it's hegemony has sold it's soul. The Military financial complex reminds me of the late Roman Republic. Bread and circus and a mercenary army.
                    We hunt the hunters

                    Comment


                    • #11
                      Originally posted by phil74501 View Post
                      I'm in a public pension system myself. When I tell people that, a lot of them act as if I'm stealing money from them. That's not the case. A pension is my money, that I let my employer set aside for me, like a savings plan. Instead of my employer paying me that $100 a week, or whatever it is, I let them put it into, what is in effect, a savings account, it gains interest over the years, and when I retire, I can draw out of it.

                      The problem with the short fall in the public pensions systems is not the fault of the people in those public pension systems. The fault lies both with the the politicians who robbed from those systems to buy the votes of their electorate, and the people who elected those politicians because of all the freebies they were promised....paid for in part by money from those pension systems.
                      This is a problem with most pension plans, private or public. The corporation or government running them runs into money issues by a downturn the market, incompetence, poor management, or whatever. The people running things think "I know! We can cover the losses with pension funds and pay it back later when things get good again." Only things don't get good enough again to cover what's really the equivalent of a mound of credit card debt on top of having to pay current bills.
                      In government, what makes it even worse is that they keep promising more and more to people who are often fiscally insolvent themselves. That is they take but don't contribute.

                      GM did that. They robbed the pension plan to keep the company operating. Never mind they were building crappy cars. Never mind that they did little to really fix their foundational problems. It was business as usual until the money ran out...

                      Comment


                      • #12
                        Originally posted by G David Bock View Post
                        The relationship between poverty and crime is not necessarily causal. I personally know of extremely poor areas with relatively low rates of serious crimes. The link between crime and large numbers of young males however is clearer.

                        The fact that most studies fail to find a significant link between unemployment and crime rates is interesting. See this study for example


                        https://smartech.gatech.edu/bitstrea...ncimerates.pdf


                        What the researchers seem unable to address is differences in cultures. Large urban areas with large numbers of young males, high unemployment and poverty have a different culture than say a small town with equivalent poverty rates.

                        Young males living in environments where successful mating is unlikely or activity discouraged by the welfare system are likely to go rogue. Community values are also less likely to be enforced in large urban areas.

                        With the near elimination of absolute poverty poverty has become more a state of mind than a threat to existence. Young males are biologically inclined to form groups outside the more stable reproductive core. In all highly social apes young males tend to be disruptive and poorly behaved existing on the fringes of society. In essence they are expendable members of the society an atmosphere not conducive to patterns of responsible behaviour but highly conducive to spiritual poverty.

                        Religion and patriotism once formed a counter weight to the natural inclinations to anti social behavior. Those institutions however never completely penetrated urban centers of poverty where crime has historically been even higher than it is today. I would argue that poverty in these subcultures creates the environment for criminality but is not the cause.

                        If we want to cure the crime problem we need to restore the spiritual health of our communities especially the community of young males. An important part of that spiritual healing would be to restore the institution of marriage. To do so obviously involves addressing poverty and employment. Unfortunately our intellectual community seems to actively work against the restoration of marriage as an institution. Cultural Marxism, post modernism, and the welfare state as well as many socialists hypocritically disparage the idea of commitment. Statistics show that the intellectually classes are much more likely to successfully form long term relationships something they seem to want to deny the victim classes including indoctrinated feminists.

                        The problems we face are not new but the intellectually barriers to solutions are. Ideological purity is a barrier to practical solutions and is a breeding ground for cognitive dissonance. A narrow view of spirituality adopted by intellectuals is leading to all the problems Nietzsche predicted would result from the death of God. We can't just focus on healing the body and pretend the soul does not exist. When I listened to the debate between Sam Harris and Daniel Dennett on freewill it became clear to me that our intellectual class is unable to come to grips with the dichotomy of physical and cultural reality. The soul to steal Dennett's idea is as real as home runs, social justice or neurons.
                        We hunt the hunters

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                        • #13
                          The link with crime and young males has not so much to do with poverty, as having nothing to do. Poverty simply reinforces the having nothing to do.
                          Wisdom is personal

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                          • #14
                            Originally posted by Karri View Post
                            The link with crime and young males has not so much to do with poverty, as having nothing to do. Poverty simply reinforces the having nothing to do.
                            In previous centuries, the way that could be dealt with was having a nice big war somewhere and killing them all off. That seems to no longer be an option.

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                            • #15
                              Originally posted by Karri View Post
                              The link with crime and young males has not so much to do with poverty, as having nothing to do. Poverty simply reinforces the having nothing to do.
                              Did you read the paper I linked?

                              The link to unemployment is dubious which is why I included it. Some explanation besides poverty is necessary.
                              We hunt the hunters

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