State and Local Government Pension Problems

Public pension deficit gaps are worse than what the mainstream media mention. That’s because the projected income used for investments in them is still are too high at 7% and 8% when actual earnings are more like 6% and often 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 the pension money.

                       

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