State and Local Pension Deficits

                 

The public pension deficit gaps are worse than what the mainstream media mention. That’s because the projected income used for investments in them is too high at often- assumed 7% and 8%. Actual earnings are more like 6% or less.

                       

In reality, the estimated earnings on investments to pay

future public employee pension payments ought to be equivalent to what the state or city or other local entity has to pay when it borrows to finance pension money.

                       

Therefore, the problem we see has been hidden too long by politicians kicking the proverbial pension deficits can down the road. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)