Public Pensions

The NY Times recently ran a story on public pensions in the city. 13 police officers retired at age 40 with annual pensions of $100,000 and up. And 9 additional officers were in the 30s when they retired with $100,000 annual pensions. And these pensions will go up annually, with inflation. (Curious if they will go down in the event of deflation.)

http://www.washingtonexaminer.com/opinion/columns/When-a-public-pension-is-a-trust-fund-94698759.html

Meanwhile, stiking teachers are complaining about proposed cuts in pay in California. These teachers are making an average of $100,000 per year. We have reports that public pension endowments are underfunded to the tune of $3 trillion.

There is a significant problem here. We are heading to a cliff, like Greece.

http://keithhennessey.com/2010/05/26/underfund-pensions/