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General Electric Company Message Board

  • qaydan qaydan Apr 19, 2014 2:36 PM Flag

    85% of Public Pesions could fail over the next 30 years

    Bridgewater Associates study reports that eighty-five percent of public worker pension plans could fail within thirty years. These plans have a combined three trillion dollars, but liabilities of ten trillion dollars. The overly generous terms of the pensions and way to little payments into the plans means trouble ahead.

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    • gaydan: Two thoughts come to mind when reading your post: 1) You won;t be around, 2) You subscribe to :gloom and doom." Groups that preach gloom and doom are bound to be right as markets go through a cycle as you should know. The gloom and doom predictors depend on people like you to keep them in business.

    • Most states, counties and cities and federal gov't jobs the employees do not have to pay into the pension fund. Some states do.
      Those states where the employee pays into the fund, the funds are on rather sound footing, that is up until Obama. With the Federal controlled interest rates these funds are starting to see problems. Prior to Obama these fund were earning about 5-6% interest. Today they are earning maybe 1%.
      Also, many of these retirement plans are very unfair with the benefits they pay. Within a state, some retirees get a COLA, others do not. Some retire with 100% of benefits at age 50 while others must be 62 and in a few cases 65.
      Again, politicians promise great increases in pensions if they get elected. What most of you voters don't realize, they raise your taxes to pay for this. I
      In most states gov't employees earn an average of about 30% more than the tax payer. As Jesus said, "It ain't right for poor people to give their hard earned money to gov't so gov't employees can live so much better". Paraphrased.

    • Thank God all those cops who might get screwed out of their pensions have guns so they can get what they were promised.

    • I think they came very close to failing in 2008. A lot of people got notices back then saying the funding was at warning levels. The bailouts that saved the markets and the subsequent rising markets really saved private and pension funding. If the markets should have a big drop again, the funding percentages could reach crisis levels again. And then once again, congress did a real stupid thing. Tied to the unemployment bill was a provision where companies could contribute less to their pension funds. Combine that with some states that contributed less to their pension funds, and in one case I believe next to nothing for three years to pay for a state tax cut, and you have the makings for a public and private nightmare again should the markets fall.

 
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