There are only three possibilities regarding these pension obligations. You agree to let them double your real estate taxes, government employees agree to take cuts or the States declare bankruptcy and default on their promises. Which do you think will happen?
Chart of the Day
IL, CA, NJ, TX and PA Worst at Keeping Pension Promises
September 12, 2014: IL, CA, NJ, TX and PA are the five worst states at keeping their pension promises. These states continue to increase their pension debt instead of setting aside enough money to pay retired employees.
|
State |
2012 Unfunded Pension Benefits Due |
2013 Unfunded Pension Benefits Due |
|
|
Illinois |
$94.6B |
$100.5B |
|
|
California |
$53.4B |
$59.4B |
|
|
New Jersey |
$34.7B |
$37.6B |
|
|
Texas |
$31.6B |
$35.9B |
|
|
Pennsylvania |
$29.3B |
$34.0B |
|
· These States promise their employees pensions but do not set enough money aside to pay them
· Pensions should be fully funded yearly, since they are part of employee compensation.
· Future taxpayers will be responsible for paying for these debts – for services they never received
Government accounting rules allow these states (and others) hide much of their pension funding problem from public view. See Hidden Pension Debt: CA, IL, NJ, PA, TX 2009-2013 Check your state by selecting ‘Edit Chart Criteria’ below the chart, select your state, scroll down and ‘Generate Chart.’ READ MORE
