States sinking in pension plan debt
Original post made by Arnold, Another Pleasanton neighborhood, on May 29, 2013
Taxpayers nationwide are staring down a swelling tidal wave of government pension debt. Recent estimates put the combined unfunded liability of state pension systems at $2.5 trillion. Nearly every state has tried to reduce these unsustainable costs, but most reforms have proven to be baby steps or worse -- leaving future generations up to their necks in waves of debt.
One inescapable fact remains: Without meaningful reform, paying down these liabilities would cost the average American household an additional $1,385 in taxes every year for the next three decades."
In Pleasanton the unfunded employee cost for pensions and retiree health care is ONLY about 200 MILLION DOLLARS. The payment terms are about to change and the cost is expected to increase dramatically. Of course nobody would know that based on city managements plan to increase to compensation for themselves, which also increases unfunded pension liabilities even further.
The school district is in big financial trouble - the reality is only a year or two away. In the meantime the district and unions are busy fighting over wage increases. You just can't make this stuff up!
As Rome burns...
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