Will Many Go Broke Without A Pension?
IF YOU THINK HEALTH CARE IS A BIG ISSUE?
PRICHARD, Ala. -- Prichard's municipal pension fund doesn't have enough money to pay retirees next month, according to a letter from the pension board's chairman and City Council member Troy Ephriam.
With less than $50,000 left in Prichard's pension fund and monthly payments of about $150,000 to the city's 193 pensioners, Ephriam asked Mayor Ron Davis on Tuesday for an answer this week on "how the city plans to make the required September pension payments."
Ephriam wrote that "Wachovia Bank, the custodian of the funds, has requested direction in the winding up of the fund."
Ephriam told the Press-Register that only $43,872.27 was left in the account.
Davis did not respond to phone messages left Tuesday with his spokeswoman.
AND THIS FROM OUR BUDDY KARL DENNINGER:
Now, CALPERs chief actuary is finally speaking up:
Ron Seeling, the CalPERS chief actuary, described the process used to “smooth” the rate increases that will be imposed on the 1,500 local government agencies in CalPERS in 2011 in the w ake of the stock market crash.
Instead of a rate increase of 4 to 20 percent of pay, the smoothing will reduce the rate hike to a more manageable 0.5 to 2 percent of pay.
“I don’t want to sugarcoat anything,” Seeling said as he neared the end of his comments. “We are facing decades without significant turnarounds in assets, decades of — what I, my personal words, nobody else’s — unsustainable pension costs of between 25 percent of pay for a miscellaneous plan and 40 to 50 percent of pay for a safety plan (police and firefighters) … unsustainable pension costs. We’ve got to find some other solutions.”
Oh, but he DID sugarcoat it.
Hmmmmm. How will Americans be told that the pension they depend on to live is simply broke?
And so is social security, and medicare, and medicaid, and unemployment if we want to keep 20,000,000 people employed for government and prosecute a few wars?
The numbers just don't add up, unless Obama starts taxing our all of our income and assets as well.