Are state/county/city retirements going to be safe in the future?

[raccoon]

Is there a place one could check to see if they're in trouble?

[flashl]

1. Last story remember reading ...

December 19, 2007
Pension Fund Shortages Create Hard Choices


Almost half of the states have been underfunding their retirement plans for public workers and may have to choose in the years ahead between their pension obligations and other public programs, according to a comprehensive study to be released to the public on Wednesday.

All together, the 50 states have promised to pay some $2.7 trillion in pension and retiree health benefits over the next 30 years, according to the Pew Center on the States, which spent more than a year studying the issue.

The amount does not include separate retirement plans run by local governments.

NY Times

[AnneD]

2. It's going to depend...

on how they are funded. There are many variables. You don't give a location so I am not sure about specifics. I snoop around-I have seen some graphics before.

[raccoon]

4. I was thinking of the state of SC. nt

[flashl]

6. Pew Center State Pension Report: SC Fact Sheet

South Carolina’s pension systems are funded below the 50-state average—but the state has been making a yeoman’s effort to improve its status. It is one of 16 states that has consistently paid 100% (or close to 100%) of its annual required contribution during the past 10 years. On the non-pensions side, the state faces a $10 billion bill coming due for retiree health care and other benefits, $4.2 billion of which is for state employees. The state had not set aside any funds toward this long-term obligation as of the end of fiscal year 2006. But in fiscal year 2007-2008 legislation, the General Assembly appropriated $113 million, awaiting an established formal trust fund. If South Carolina consistently funds its annual required contribution, the state’s total unfunded liability will drop to $2.9 billion for state employees and to $6.4 billion total. This is because the interest the state is likely to earn when it invests more money over the long term can be applied to paying down the bill.

Pew Pension Report SC (PDF)

[raccoon]

7. Thanks for the info/link. nt

[Warpy]

3. Retirement plans invested heavily in CDOs

meaning they get a little shakier every time another iffy loan gets foreclosed.

[AnneD]

5. Some states more than others...

here in Texas Gov Goodhair tried to pass a law that said the Teacher's Retirement system had to invest 10% of our funds in aggressive ventures here in the state of Texas. Fortunately-Enron was on everyones mind and that idea got smacked down in a hurry.

[Warpy]

9. Texas was lucky in that respect

Although a lot of states had their pension funds slammed when Enron collapsed into a heap of fraud and wishful thinking, they just didn't manage to learn.

Pension funds are going to be slammed by the foreclosure mess.

[InkAddict]

8. Won't matter if hyperinflation eats it away. n/t