America’s pension systems are in trouble. Here’s a little sample of what’s gone wrong:
- Illinois: New Governor, Same Old Pension Pyramid Scheme
- Is Your State’s Pension System about to Collapse?
- Pensions are Still Hiding from the Truth
- Connecticut: Big Government Utopia Begins to Crack
- Broke States Trying New Tricks to Wrangle Lending
- California Pensions Continue to Make Headlines
- Pensions in a Load of Trouble
- Fuzzy Math Can’t Hide This State’s Pension Trouble Anymore
In light of the pension troubles facing New Jersey, politicians are finally starting to take steps to privatize some of the state’s retirement system. But is it too little too late? The Wall Street Journal’s Joseph De Avila and Heather Gillers write:
Some New Jersey lawmakers are pushing an overhaul of the state’s pension system, one of the most deeply indebted retirement systems in the U.S., as payments are expected to more than double by 2023.
A bill introduced by the state Senate’s Democratic leadership would shift new state workers and teachers, as well as those with less than five years of experience, into a hybrid retirement plan that combines a pension with something like a 401(k) plan.
“The pension system is in a crisis,” said New Jersey Senate President Steve Sweeney, who co-sponsored the legislation. “It’s crowding out any investment we want to make.”
New Jersey isn’t alone. Pension funds across the country are by some estimates $4 trillion short, putting pressure on municipal budgets and forcing tough decisions.
he proposal of a hybrid plan in a Democratic stronghold shows how popular the idea of sharing investment risk with public workers has become. At least 11 major public plans since 2008 have made changes tying at least part of their workers’ retirement benefits to market performance, according to the National Association of State Retirement Administrators.
Read more here.
Originally posted on Your Survival Guy.