The New American: After reviewing the investment results for 230 public pension plans for the last two years, Pew reported last Thursday that, despite strong recent stock market performance, the gap between liabilities (promises) and assets for those plans widened by 17 percent, to $1.4 trillion.
Put another way, those plans should have nearly $4 trillion in assets to enable them to keep their promises. The latest data shows them with just over $2.5 trillion instead.
The numbers are daunting. Only one state — South Dakota — has fully funded its pension liabilities. The next four — Wisconsin, New York, North Carolina, and Tennessee — are close, averaging 97 percent funded. The really bad news is for the bottom five: Pennsylvania (55.8 percent), Connecticut (49.4 percent), Illinois (40.2 percent), Kentucky (37.8 percent) and, in last place, New Jersey, at 37.5 percent. more …
Opinion: If you have been coming to this website for any length of time you will have seen a lot of discussion on how low interest rates have/are destroying the retirement of tens of thousands of senior citizens.
The Federal Reserve, European Central Bank, and Bank of Japan have printed trillions of dollars, bought gigantic amounts of bonds and forced interest rates to zero.
Pension plans by law must have a SIGNIFICANT amount of retirement dollars in high-rated bonds, and while the Fed has been desperately trying to raise rates without destroying the entire economy, they have been slowed down by poor economic growth and even worse inflation numbers.
Our post from March 17, 2017 here:
“With tens of trillions in unfunded liabilities, the weight of an avalanche remains dangling over our heads. An aging population is cashing in on needed retirement benefits while the younger generations must support multiples that are unsustainable financially.
Somewhere between the retiree that needs clothing, food and lodging, and the bankruptcy of cities and state governments is the makings of the next economic crisis.”
Since we can have confidence that Romans 5:9; 1 Thess. 1:10, 5:9; Rev. 3:10 all precede Revelation 6:5-6, we can warn those who have no knowledge of what is to come.
Think of it as the door of the ark is not quite ready to close (Genesis 7:16), yet.