Quote:
Originally Posted by secondcurve
Looks like your the best house in a bad neighborhood according to the below excerpt from a September 2012 article I just found on the web:
"The percentage of unfunded liability varies from state to state. North Carolina has the lowest at 37.1 percent (if having a third of your pension debt unfunded can truly be called low). Illinois has the highest at 71.8 percent. Something else to keep in mind when thinking about all those raises the teachers in Chicago just received."
Everyone out there should be focused on these unfunded state pensions because ultimately, the US government will be asked to bail out the state systems since these pensions are insolvent. The problem is the US government is insolvent, too.
While I agree that it is difficult not to receive a pension that was promised that is exactly the way it works in the private sector. Case in point: I was working for a triple A rated, large multinational several years back. In june it announced its pension would be terminated in December! That was it. End of story. I didn't whine but I did leave and join another organization for a better deal to help me make up the shortfall. That is the way it works in the real world.
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Good points, and lets hope the government stays away for bailouts and lets things work out the way they should have a long time ago.
Like the housing market, no one forced many of the homeowners to sign on the doted line full well knowing they were putting themselves in a position to fail should something change.
It is easy to cast blame on the banks but in the end the decision is ours on how far our income can be stretched.