Monday, October 15, 2012

Big Government + Big Promises = Big Problems

Everyday we fail to get honest answers on how the federal, state, counties and cities are going to come up with the funds to pay out all of the unfunded, mandated promises of future pension payments.

There is only one real solution to this problem and that is to stop making promises we cannot afford to keep!  If we the people insist that our elected public servants stop increasing the level of public spending beyond the tax payers ability to pay, remove the mandates to pay prevailing union scale wages, start privatizing as much government services as quickly as we can; maybe we can avoid the upcoming. fiscal train-wreck, headed our way.

Enjoy the article provided below and stay tuned…this one is coming soon!

YiT ~  Shelly


Exclusive: Study shows $1.2 trillion gap for public pensions

A pair of elderly couples view the ocean and waves along the beach in La Jolla, California March 8, 2012. REUTERS/Mike Blake

By Hilary Russ - Mon Oct 15, 2012 3:01pm EDT

(Reuters) - The largest 100 public pension funds have around $1.2 trillion of unfunded liabilities, about $300 billion above the nearly $900 billion they reported themselves, according to a new actuarial study to be released on Monday.

The pension systems reported a median funding level of 75.1 percent. The study by the actuarial firm Milliman, which used different ways to value assets and measure liabilities, finds an aggregate level of funding of 67.8 percent.

But Milliman, one of the world largest actuarial firms took a close look at U.S. public pension funding for the first time, and said the multibillion-dollar difference was good news.

Rebecca Sielman, the report's author, said results should reassure the public that America's public pensions in general are accurately reporting their funding shortfalls.

The difference between what public pensions across the United States have reported and what Milliman found wasn't significant, Sielman said. She noted that a relatively small change in the way the figures are calculated could lead to seemingly outsized results because the funds are so large.

"The numbers really didn't change that much," she said. "It really didn't move the needle."

Both the pension funds' reported results and Milliman's findings fell within the range of previous estimates from other studies of the total size of the public pension shortfall in the United States.

With the study, Milliman, stepped into the debate about whether public pensions are underreporting the size of their liabilities.  (Click here to read the full story)

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