US faces ‘disastrous’ $3.4tn pension funding hole

by Attracta Mooney  |  published on April 11, 2016

The US public pension system has developed a $3.4tn funding hole that will pile pressure on cities and states to cut spending or raise taxes to avoid Detroit-style bankruptcies.

According to academic research shared exclusively with FTfm, the collective funding shortfall of US public pension funds is three times larger than official figures showed, and is getting bigger.

Devin Nunes, a US Republican congressman, said: “It has been clear for years that many cities and states are critically underfunding their pension programmes and hiding the fiscal holes with accounting tricks.”

Mr Nunes, who put forward a bill to the House of Representatives last month to overhaul how public pension plans report their figures, added: “When these pension funds go insolvent, they will create problems so disastrous that the fund officials assume the federal government will have to bail them out.”

  • Stephen J. Koach

    Maybe the government stooges will finally seek the truth with regard to the identity thief in the White House.

  • Carl Pyzowski

    Hey! What about the pensions state and federal government employees and elected officials get? They dwarf anything anyone else gets. Serve 4 years in congress state or federal and receive a pension for life bigger than anything a teacher gets after 40 years of dealing with the results of meddling government and legal establishments. Gone are the days when a teacher was allowed to teach and not babysit. Gone are the days when a teacher was a respected member of society where his word was taken as being good for children. Now lawyers, parents, (who know nothing, having been raised in a don’t hurt my ego or feelings generation) take the part of the lying child over that of the teacher making the child feel that he can do no wrong and that he has been wronged. Put up with that for forty years and see if you don’t deserve a pension provided by the public you served. Get the politicians, lawyers and parents out of the picture and let teachers teach and discipline fairly without being afraid for their job or LIFE and maybe our kids will come out of high school being able to read on the fourth grade level, make change and know history about the foundations of this great country of ours. Lawyers are there only to make a buck and parents are there to make sure that their kids get privileges or play on the team of their choice. It is a school not a photo booth, book sale, school store, play day, field trip to a recreation park, entertainment center or nursery.

  • Roy Thomas

    Here in New York, the Welfare State, educators average $67,000 in pensions. Naturally, they escape elsewhere and NY taxpayers have to support them no matter where they go. Another form of welfare. What should happen is MANDATORY ROTH IRA’S to emphasize Individual Responsibility. Liberals, look it up in the dictionary.

  • Terry T

    Public pensions need to be eliminated entirely in favor of 401K type retirement plans. The private sector has been moving that way for years.

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