Pensions Time bomb In America – "Global Crisis” Cometh

[MindWars]

Pensions Timebomb In America – "Global Crisis” Cometh | Zero Hedge

Pensions Timebomb - Pensions "Are Going To Be A National Crisis"

• America’s underfunded pension system is “not a distant concern but a system already in crisis”...
• Tax may explode as governments seek to bail out insolvent pension plans
• Illinois, California, New Jersey, Connecticut, Massachusetts, Kentucky and eight other states vulnerable
• The simple mathematical mismatch at the heart of the pension crisis...
• Why the pension crisis really is “America’s silent crisis”...
• Pensions timebomb confronts Ireland, UK and most EU countries

By Brian Maher, Managing editor, The Daily Reckoning

"This .....................................
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And just think Obama sold the military out, because they now do 401 k's instead of the normal retirements wonder how that will be affected if at all?

The pensions have been stolen for a long time, the reason most don't know it is we don't hear about it or they put it into a different title or excuse as to why and what.

Infowars spoke of pensions getting stolen a LONG TIME AGO, but Noooo he's always full of chit what is pathetic is if one doesn't like him whatever, but the fact is this information can be found anywhere outside of him.
It's called understanding what you are reading , reading in between the lines and learning how to decode what is in plain view...........

Good luck some of yah suckers are going to have a rude awakening.

 

[Dale Smith]

Pensions Timebomb In America – "Global Crisis” Cometh | Zero Hedge

Pensions Timebomb - Pensions "Are Going To Be A National Crisis"

• America’s underfunded pension system is “not a distant concern but a system already in crisis”...
• Tax may explode as governments seek to bail out insolvent pension plans
• Illinois, California, New Jersey, Connecticut, Massachusetts, Kentucky and eight other states vulnerable
• The simple mathematical mismatch at the heart of the pension crisis...
• Why the pension crisis really is “America’s silent crisis”...
• Pensions timebomb confronts Ireland, UK and most EU countries

By Brian Maher, Managing editor, The Daily Reckoning

"This .....................................
------------------------------------------------------------------------------------------------------------------

And just think Obama sold the military out, because they now do 401 k's instead of the normal retirements wonder how that will be affected if at all?

The pensions have been stolen for a long time, the reason most don't know it is we don't hear about it or they put it into a different title or excuse as to why and what.

Infowars spoke of pensions getting stolen a LONG TIME AGO, but Noooo he's always full of chit what is pathetic is if one doesn't like him whatever, but the fact is this information can be found anywhere outside of him.
It's called understanding what you are reading , reading in between the lines and learning how to decode what is in plain view...........

Good luck some of yah suckers are going to have a rude awakening.

Yep, that will be the next house of cards to collapse. People without hard assets are totally screwed.

 

[MindWars]

Pensions Timebomb In America – "Global Crisis” Cometh | Zero Hedge

Pensions Timebomb - Pensions "Are Going To Be A National Crisis"

• America’s underfunded pension system is “not a distant concern but a system already in crisis”...
• Tax may explode as governments seek to bail out insolvent pension plans
• Illinois, California, New Jersey, Connecticut, Massachusetts, Kentucky and eight other states vulnerable
• The simple mathematical mismatch at the heart of the pension crisis...
• Why the pension crisis really is “America’s silent crisis”...
• Pensions timebomb confronts Ireland, UK and most EU countries

By Brian Maher, Managing editor, The Daily Reckoning

"This .....................................
------------------------------------------------------------------------------------------------------------------

And just think Obama sold the military out, because they now do 401 k's instead of the normal retirements wonder how that will be affected if at all?

The pensions have been stolen for a long time, the reason most don't know it is we don't hear about it or they put it into a different title or excuse as to why and what.

Infowars spoke of pensions getting stolen a LONG TIME AGO, but Noooo he's always full of chit what is pathetic is if one doesn't like him whatever, but the fact is this information can be found anywhere outside of him.
It's called understanding what you are reading , reading in between the lines and learning how to decode what is in plain view...........

Good luck some of yah suckers are going to have a rude awakening.

Yep, that will be the next house of cards to collapse. People without hard assets are totally screwed.

Imagine how many jackwads have no clue they have no pensions, and what makes it even more hysterical will be those who claims this is fake information, and they go to get their pensions in lets say a month or so and they get told sorry your shit's gone lmao.

 

[task0778]

Many states have it written into their state Constitutions that all current AND future public employee union pensioners must be paid their money, so unless that changes everything else is 2nd in line or further down. My understanding is that some 40 of the 50 states have underfunded pension programs to some degree, just not yet as severe as the states mentioned in the OP. And the amount of the shortfall is huge in some cases, no amount of tax hikes is going to come close to fixing the problem. And while cities and counties have bankruptcy laws for them to use, there's no such mechanism for the states; they are considered sovereign, which means the federal gov't cannot interfere with the way each state does it's fiscal business. BUT if enough states begin clamoring for help from the Feds, and some already are, then Washington might be politically forced have to legislate how a bailout might be done

There's already a sort of precedence, Washington already passed legislation last year to bail out Puerto Rico and they could do the same for a financially troubled state. There are some Constitutional issues to deal with, this country was setup to delineate power between the federal gov't and the states because many people were very afraid of a central gov't that was too powerful. So I would assume any federal judge or group of judges that oversee a state bankruptcy might not be able to order a state to do this or that, but I'm thinking they could withhold federal funding until and unless the states comply with whatever is determined to be necessary to get the state's fiscal house in order and that might mean changing a few state Constitutions. If you think we're a divided nation now, wait until we start bailing some states out of their financial mess at the expense of others.

 

[MindWars]

Many states have it written into their state Constitutions that all current AND future public employee union pensioners must be paid their money, so unless that changes everything else is 2nd in line or further down. My understanding is that some 40 of the 50 states have underfunded pension programs to some degree, just not yet as severe as the states mentioned in the OP. And the amount of the shortfall is huge in some cases, no amount of tax hikes is going to come close to fixing the problem. And while cities and counties have bankruptcy laws for them to use, there's no such mechanism for the states; they are considered sovereign, which means the federal gov't cannot interfere with the way each state does it's fiscal business. BUT if enough states begin clamoring for help from the Feds, and some already are, then Washington might be politically forced have to legislate how a bailout might be done

There's already a sort of precedence, Washington already passed legislation last year to bail out Puerto Rico and they could do the same for a financially troubled state. There are some Constitutional issues to deal with, this country was setup to delineate power between the federal gov't and the states because many people were very afraid of a central gov't that was too powerful. So I would assume any federal judge or group of judges that oversee a state bankruptcy might not be able to order a state to do this or that, but I'm thinking they could withhold federal funding until and unless the states comply with whatever is determined to be necessary to get the state's fiscal house in order and that might mean changing a few state Constitutions. If you think we're a divided nation now, wait until we start bailing some states out of their financial mess at the expense of others.

 

[MarathonMike]

This is also a Federal problem because the Pension Guaranty Benefit Corporation backs many pension plans and is of course tax payer funded.

 

[task0778]

This is also a Federal problem because the Pension Guaranty Benefit Corporation backs many pension plans and is of course tax payer funded.

I do not believe the PGBC is taxpayer funded, at least not yet. And I need to see some evidence of the gov't taking over 401k pensions.

Added: The PGBC is only for private pensions, not for public employee unions. And it is rapidly going deeper into debt with so many companies and unions having the same problems that the states and cities do, the people running the pension funds overpromised the benefits they could/would pay and overestimated the ROIs they would get from their investments. When you plan on getting 8% return on your investments but only get 2%, well it doesn't take long for a gap to grow into huge proportions between the money you promised in benefits and the money you actually have or will have.

This is going to be a big political problem going forward with so many people in both the public and private sector who are going to find out they won't be getting the pensions they were promised unless the federal gov't steps in. Those who are getting assistance will be relieved but those who are not and are paying for that assistance are going to be seriously pissed.

 

[MarathonMike]

About PBGC
What is the Pension Benefit Guaranty Corporation (PBGC)?
PBGC is a federal agency created by the Employee Retirement Income Security Act of 1974 (ERISA) to protect pension benefits in private-sector defined benefit plans - the kind that typically pay a set monthly amount at retirement. If your plan ends (this is called "plan termination") without sufficient money to pay all benefits, PBGC's insurance program will pay you the benefit provided by your pension plan up to the limits set by law.

 

[Dont Taz Me Bro]

And I need to see some evidence of the gov't taking over 401k pensions.

They aren't. It's conspiracy crap.

 

[my2¢]

401k's and pensions are 2 separate things. .

 

[MindWars]

Yeah such a CONSPIRACY they've been doing it since 2013 " STEALING PENSION" gawd dam ppl are clueless............

Detroit ruling opens door to pension cuts across the nation

 

[MindWars]

Such a conspiracy AGAIN 2013 It's been going on but American asses haven't a clue wtf is doing on let alone believe it unless OBAMA or MSN tells them

The top 10 biggest U.S. cities on the brink of pension bankruptcy

According to Business Insider, here are the top 10 U.S. cities whose pension obligations will soon collapse: (this article was originally published in 2010, so we have updated the “years” to reflect 2013)

#1 Philadelphia – Unfunded liability of $9 billion, $16,696 per household, only 1 year before the pension accounts are empty

#2 Chicago – Unfunded liability of $44.8 billion, $41.966 per household, money runs out in 4 years

#3 Boston – Unfunded liability of $7.5 billion, $30,901 per household, money runs out in 4 years

#4 Cincinnati – Unfunded liability of $2 billion, $15,681 per household, money runs out in 5 years

#5 St Paul – Unfunded liability of $1.4 billion, $13,686 per household, money runs out in 5 years

#6 Jacksonville – Unfunded liability of $4 billion, $12,944 per household, money runs out in 5 years

#7 New York City – Unfunded liability of $122 billion, $38,866 per household, money runs out in 6 years

#8 Baltimore – Unfunded liability of $3.7 billion, $15, 420 per household, money runs out in 7 years

#9 Detroit – Unfunded liability of $6.4 billion, $18,643 per household, money runs out in 8 years

#10 Fort Worth – Unfunded liability of $2 billion, $7,212 per household, money runs out in 8 years

Note that some of these numbers were actually optimistic. Detroit, for example, was predicted to run out of money in 2021, yet it already declared bankruptcy in 2013. What you are looking at here is a looming cascade of municipality bankruptcies over the next 10 – 20 years.

Cascading financial collapse