Government pension plans are headed for disaster

[MindWars]

Lawmakers raid funds for themselves


The combined debt held by U.S. public pension plans will top $1.7 trillion next year, according to a just-released report from Moody’s Investors Services.

This “pension tsunami” has already forced towns like Stockton, California and Detroit, Michigan into bankruptcy. Perhaps no government mismanaged their pension as badly as Puerto Rico, where a $43 billion pension debt forced the commonwealth to seek protection from the federal government after having defaulted on its obligations to bondholders — a default which is expected to spread to retirees in the form of benefit cuts.
Government Pension Plans Are Headed for Disaster
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Say what you want, deny it if you want but when your pension is gone you will believe it then.
The Government has already been taking pensions, most aren't going to know it because they may not receive pensions yet, but guess what by the time your ready it won't be there.

 

[ShootSpeeders]

Alll pensions are collapsing because of the super low interest rates obobo imposed on the economy for 8 years. Pensions have always been able to get a safe 6-8 % return on investments and structured their payouts on that assumption. But under obobo it's been 2-5%.

 

[Andylusion]

Alll pensions are collapsing because of the super low interest rates obobo imposed on the economy for 8 years. Pensions have always been able to get a safe 6-8 % return on investments and structured their payouts on that assumption. But under obobo it's been 2-5%.

Are all pensions in low interest investments? I honestly don't know.

Regardless, you can't ever make a defined benefit plan, because you never know for certain what rates of return you will make.

No matter what investment you choose, there is no guaranteed rate of return on anything. Thus you should never have a defined benefit plan.