This is the chart of doom for government workers across the land and the taxpayers funding these pension plans with their hard earned money. The truly frightening fact isn’t how underfunded these plans are today. The frightening fact is the change from 2009. The stock market bottomed out in March 2009. It has risen 120% since March 2009. The funding ratio of these pension plans should have soared higher, along with the stock market. Instead it has declined in most states. My great state of PA has seen its funding ratio PLUNGE from 85.45% in 2009 to 65.61% in 2012. This means that the states have not been contributing the required cash into these plans. This is because they would need to raise property taxes by 10% to 20% to honor the promises they’ve made to government workers.
Now for the kicker. They have been using an 8% long-term return assumption for their plans. Stocks are now overvalued to the point where the long-term expected return is 2.5% and bonds will be lucky to return 0%. Put that in your model and smoke it. If a realistic assumption was used to calculate the future value of these pension assets, you would slice 20% off each of those funding ratios. Now, with the stock market bubble reaching a new peak before the next pop, these pension plans are about to take a 30% to 50% hit over the next few years. Bye Bye pensions.
If you are a government employee and expect your state to honor their pension promise to you, then you are a delusional fool. It’s just math. The taxpayers are not going to allow their real estate taxes to be doubled in order to pay your pensions. I suggest you make alternative plans for your retirement. I hope you like the taste of cat food. The politicians and government bureaucrats lied to you.
The socialist state of Illinois wins!!!!!!!! Hooray!!!!!!
My fucking neighbors will get their bloated pension erased in 3, 2, 1…..They’ll have to go back to work, which is fine, because they retired at 50. Fuck ’em with a hot poker.
If you look across the column for Illinois, the pension balance should reach ZERO some time around 2022.
Obamba will cut a deal. The deal will be a fully funded pension to any and all states that are democrat.
The frightening fact is that when these pensions shrivel to the size of a WALMART receipt, the city,county, state, is still in debt.
Where is the turnip?
Shit, WIP,…
http://www.pbgc.gov/
Many company pension plans are underfunded. From the Ludwig von Mise Institute During FY 2002 [PBGC’s] balance sheet went from a $7.7 billion surplus to a $3.6 billion deficit, a loss of $11.3 billion, more than five times larger than any previous one-year loss. In January, the Financial Times reported that “Actuaries at Towers Perrin estimate the average Fortune 100 company is now storing up more than $3 billion in deferred pension costs which have yet to show up in published profit and loss figures.”
In May, Business Week reported that a Congressional estimate suggests PBGC could face a shortfall of $120 billion over the next decade. PBGC says that it needs $23 billion over the same period.
The Cato Institute warns that PBGC faces a savings-and-loan level bail-out: “Pension plan underfunding stands at more than $350 billion, which increases the likelihood that more pension plans will go under and taxpayers will eventually be called upon to provide a bailout.”
My fucking neighbors will get their bloated pension erased in 3, 2, 1…..-AWD
Yet the debt remains.
Awesome post Admin. My pal Al and I took this story to NJ legislators in 2011 – the pols we met with turned ashen. They had no freak’in idea.
The first question they asked was, “How long until it crashes?” You could tell they were calculating if they would be in office when the SHTF.
Of course, Fatso has not contributed to NJ pensions in 3 years – took the pension dough, dropped it into the general operating funds to “balance” the budget.
God forbid any fake journalists ask Fatman about this ticking time bomb.
No, instead they let him take a victory lap. Christie can’t run. They’ll have to change the term to waddle for Prez.
DRUNK DRIVING
We should not do it. First we have to know if we are doing it.
See here:
The Public Be Suckered
http://patrick.net/forum/?p=1230886
Hell 401’s will crash as well, no ones gonna have a retirement, what worse than that, law and order will not hold. You live on the east coast, west coast, large population center your retirement will be the least of your concerns going forward.
The real smart people have farms in the middle of no where, stock piles of Ammo and the ability to live off the electric grid without gasoline. NOW that’s a retirement plan, anything short of that’s a fools game period.
Does anyone know if these numbers were run under the new accounting principles? I recently read a piece that said NYS Teachers and NYS employee systems were actually 47% funded under the new principles
Not sure how to post youtube videos because every comment I post with a link doesn’t appear but —
I think this video should be front-page news on theburningplatform.com as well as every MSM outlet … but of course it would be a massive threat to the oligarchy so we all know it will end up in the toilet …
Regardless .. JQ .. I think it should be considered for a featured post on your website 🙂 …
take a look .. it’s long .. but mesmerizing and so accurate especially if you have been studying America’s economics and picking up tidbits here and there ..
This video basically knocks it all out of the park ! touching base on EVERYTHING. EVVVERRRYTHINNGGG.
youtube . com /watch?v=bYkl3XlEneA
sensetti, I’m not suggesting anyone not prep, but as history will attest the collective of weak and stupid will always prevail over the steady and strong.It’s simply a matter of organization and shear numbers of force.
Strong ,steady, independent types shun the collective and mostly seek solace in solitude.And,this is their weakness.
Just take a look at the current leadership amongst the current governing Thugacracy.How many strong ,silent types do you see?
I see only a pompous pack of pandering pussies who in the event of a socioeconomic collapse will unleash their collective minded jack-booted minions armed with the latest weaponry and technology upon any and all who attempt to live free and separate.
The agarian South tried to separate from the industrialized Union in 1861 and look what happened to that armed and organized confederacy of States?
The Union left the CSA in a smoldering state of economic ruin and human devastation .People were either murdered outright or starved off their land.Republican carpetbaggers descended like buzzards on a rotting carcass fighting over the spoils of a once proud and independent people.
To be a Southron in the winter of 1865 was to be deprived of hope,sustenance, human rights and property.It would be a hundred years before the south would begin to recover from the blue death and mostly due to easy credit/debt slavery which has now all but dried up.
Since the blue collar textile/manufacturing industry all but disappeared in the South, the winter of ’65 may be in for a self-reboot and I think it safe to say that an impoverished, lightly armed populace has little loyalty outside of stomach and creature comfort.
The blue devil devastation of the rebel lands and people occurred nearly 150 years ago utilized only simple weaponry of fire and steel.Imagine what an army of rebels would face today against the massive array of satellite surveillance, GPS, laser guided smart bombs, drones, C-130 weapon platforms and other air assault capabilities too numerous to mention.
That said, the only hope this Republic has against a deviant Democracy is in the voting booth and as long as a two party majority population of voters dependent of government sustenance are allowed a vote, the Republic will continue to crumble until it exists in name only.
https://www.youtube.com/watch?v=ceRg_rxXQ_E
Pompous pack of pandering pussies. Great alliteration. I may have to steal that for future use.
Bob.
Realistically you can’t expect the government to take care of you. The government’s not your mother, your parents, your children, your family, your church, or your friends.
The Big G(overnment) is several organizations that will tax you, draft your kids, or do whatever else is necessary for you to pay for and support their lifestyle and world view.
Your pension… Well, they control it and they have the money that they may or, may not, dribble out to you in years to come.
If you’re young enough and have a chance, set your future up this way. Save money so that you have enough to live on when you retire. Meanwhile, pay cash for everything, houses, cars, etc if you can. Learn to live on less. The happiest people are those who live a life of the mind, not the pocketbook.
As for your pension and Social Security, treat those bucks as gravy. Earmark much of it for your kids. If you’re open and honest with your kids about finances, if you’re generous and not selfish, they’ll follow your lead and love you for it. Most satisfying is to have people who you care for, care a lot for you.
When you’re dead, your gone – I should have been a Christian. But the good lessons you teach your children and grandchildren and the kindnesses toward them will live for generations… maybe forever. For example… I got zero, zilch, nada in money from my great grandparents, but the good examples and life’s lessons from them have been invaluable.
Think about it… Be a treasure to your children and your descendants. Think about it… you can do it? Figure it out and be a paragon for your family and their future.