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Thread: AS I stated Major pension crisis starting in 2017

  1. #351

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    Feds move to take over Sears pension plans, will cover ‘vast majority’ of benefits for retailer’s 90,000 retirees

    The agency covers individuals’ pensions, up to certain limits, if an insured pension plan shuts down without enough money to pay all benefits. It estimates Sears’ two pension plans are underfunded by about $1.4 billion. As a creditor, the agency could attempt to recover some of that money through the bankruptcy.


    https://www.chicagotribune.com/busin...118-story.html

  2. #352

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    We’re Reaching the Beginning of the End of the Pension Fund Crisis

    Typically, public pensions assume a 7-percent discount rate so they need to generate a return higher than that. But according to Bloomberg, they aren’t getting those returns often enough.
    The Bloomberg article states that the average returns for pension-fund-like portfolios have only generated returns of 7 percent or greater for 50-year periods twice since 1871.
    The article continues, saying the problem is worse because of two primary reasons:
    “Cumulative returns are lower than the averages.”
    “An extended period of bad returns cannot be made up even with astronomical returns later.”
    For example: Over a 50 year period, if a fund were to have zero returns in the first 15 years, and goes broke, it wouldn’t matter what it did (or could do) after that. If that seems obvious, that’s because it is.
    And this example applies even if a fund started in June 1949 and earned an average of 7.99%, according to Bloomberg. Even if the pension is fully funded, “there is no chance existing assets are enough to pay already-contracted liabilities.”
    If that sounds dire, once the base of assets start to decline it’s game over, because shrinking assets can’t keep paying increasing liabilities. And according to Pew Research, they have been in decline since 2016.


    This means payments are increasing faster than contributions. If a business has expenses that increased faster than revenue, eventually it would go out of business.
    So will state and local pensions start “going out of business” over the next few decades? No one knows for sure, but it does look like they are on borrowed time. And as we’ve reported before, corporate pensions aren’t far behind.


    https://www.birchgold.com/news/were-...on-fund-crisis

  3. #353

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    The Postal Service was unable to pay the $6.9 billion it owed the federal government to prefund pensions and health benefits for workers, as has been the case for several years. It has more than $120 billion in debt and unfunded liabilities.



    Can you say insolvent.....

  4. #354

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    Could CalPERS, California's public pension system, be catastrophically underwater?

    Furthermore, the official assumption that CalPERS is even two-thirds funded may be wildly optimistic.

    With very little media notice, the Federal Reserve System late last year doubled its calculation of state and local governments’ unfunded pension liabilities to $4.1 trillion, using a new methodology that was devised by the federal Bureau of Economic Analysis.

    The new method, called “projected benefit obligation,” aligns pension assets and liabilities with new governmental accounting standards and how the federal government values its own employee pension program.

    Using that methodology, CalPERS’ current unfunded liabilities, officially $179 billion, could be more like $360 billion, completely overwhelming the fund’s current assets and making it, on paper at least, hopelessly insolvent.

    https://www.desertsun.com/story/opin...ry/2732926002/

  5. #355

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    Pension liabilities sharply limit state budget options


    https://www.stowetoday.com/stowe_rep...56ed361e0.html

  6. #356

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    Public pensions are the Trojan horses of US entitlements

    Total unfunded liabilities at U.S. state and local public defined benefit pension plans are about $1.4 trillion — more than three times their pre-financial crisis level. After a decade of strong investment returns, the funded status of public pension plans continues to worsen.


    https://thehill.com/opinion/finance/...s-entitlements

  7. #357

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    Chicago is loosing citizens and soon will fall below the 1:1 ratio or active employees vs retirees too.
    Chicago’s pension funds looking more like a collapsing Ponzi scheme[/B]

    https://wirepoints.org/chicagos-pens...-ponzi-scheme/

    A falling population means the city’s massive pension debts are falling on a smaller base of taxpayers. That’s bad news enough.

    But another key demographic – the ratio of active government workers to pensioners – is even more concerning.

    That ratio, which equaled 1.4 actives for every pensioner in 2005, has collapsed to nearly 1.05. And if the trend continues, in just a year or two there will be more pensioners draining money from the pension funds than active workers putting money in.



    What's the Frequency, Kenneth?

    432Hz

  8. #358

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    Quote Originally Posted by redraspberry View Post
    Chicago is loosing citizens and soon will fall below the 1:1 ratio or active employees vs retirees too.
    Chicago’s pension funds looking more like a collapsing Ponzi scheme[/B]

    https://wirepoints.org/chicagos-pens...-ponzi-scheme/

    A falling population means the city’s massive pension debts are falling on a smaller base of taxpayers. That’s bad news enough.

    But another key demographic – the ratio of active government workers to pensioners – is even more concerning.

    That ratio, which equaled 1.4 actives for every pensioner in 2005, has collapsed to nearly 1.05. And if the trend continues, in just a year or two there will be more pensioners draining money from the pension funds than active workers putting money in.



    But the government/union systems had to do this because many people don't save for retirement/last years. So let's just steal everyone's money then renig after reaping billions in cost to redistribute.

    Brilliant!
    Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

  9. #359
    Join Date
    Mar 2009
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    11,770

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    Heck of a pickle to be involved with a faulty pension plan. I think most are well beyond repair or salvaging at this point in time. The employees needed to contribute more, and the city or state needed to seek better investment returns. Too late now for 95% of the troubled plans.

    They need new plans with new rules.
    ...be your own Health Care System... grow your own and eat well

  10. #360

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    Expect more of this. Wait until the pensions start going bust many won't be happy.


    Walgreens cuts long-time health benefit for retired employees in ‘unusual’ move

    Walgreens said in a September letter reviewed by CNBC that it would no longer subsidize medical benefits for its former employees who hadn’t turned 64 by March 31, citing “rising and unpredictable healthcare costs.”


    https://www.cnbc.com/2019/06/07/walg...employees.html

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