Pensions out of money

Pensions may be cut to 'virtually nothing' for 407,000 people


"The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said.
At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday."

http://money.cnn.com/2016/05/20/retirement/central-states-pension-fund/

I'd been meaning to post this for the last 2 weeks and finally remembered to. Either shat hits the fan in a BIG way or some govt entity will have to bail it out.

I'm waiting for them to raid private 401Ks to fund the government.
errr...not looking forward to it I should say.

I fear I will face the same fate. The NJ Supreme Court last year ordered the State to pay their share into the pension system and to pay back all the money it "borrowed" that we the workers paid into. So far the Governor has refused. Just wrote to my State Senator yesterday.

That makes Christie as bad as Obama. Or worse I guess, at least in NJ the courts do something.

It's a global issue. I saw a recent article on Australia's pensions. They're taking excess risk to maintain 7-8% per year in growth. The hedge funds are feeding on the prey.

Diesel Dan wrote:

I'm waiting for them to raid private 401Ks to fund the government.
errr...not looking forward to it I should say.

I think you're right. A few years back I started using (post tax) Roth IRAs hoping they would be somewhat immune.

Christie is trying to disband our pension system. My wife has 5 years to go until she will get her pension, and I'm afraid that if somehow she came face to face with Christie, there would be a fat man lying on the ground hurt bad. We took less pay working in government and schools knowing that in the end we would at least have a pension (which we paid into 7% of our gross) when we retired. The state not paying their agreed share, then loosing billions in bad investments with our money makes my blood pressure rise.

This kind of debt doesnt help. All those dumb football stadiums in the DFW area are surely going to come back to haunt them.

http://watchdog.org/267047/puerto-pension-debt/

theshyguy wrote:

This kind of debt doesnt help. All those dumb football stadiums in the DFW area are surely going to come back to haunt them.

http://watchdog.org/267047/puerto-pension-debt/

It's a scary situation. We closely follow Chicago's pension related debt issue and I'm not surprised they were #1 on that list. Chicago tried a number of ways to get out of it and now plans to dramatically increase property taxes. The problem is Chicago already has high property taxes. It looks like businesses and people will be fleeing the area.

My late father in law had rental properties in Chicago and there's a tiny margin to be made from rental income when you include high property tax, high association fees, the crooked local business people, etc. Add to that the risk of dramatically dropping home values and we are racing to sell them as the leases end. In the last few weeks we sold 3 condos at near full asking price. One offer was from a Chinese investor. Apparently Chinese investors are trying to get their money out of China to avoid the devalued yuan.

It might take time to settle but this mess probably won't turn out well for anyone. The world is awash in debt.

Until they start imprisoning the corrupt politicians that raid those funds, it won't stop.

The more money, the more corruption. There is no limit they won't exceed with their greed for YOUR money.

Didn't they have issues like this in the Roman Empire?
IIRC they just hit the reset button on the currency. Maybe that is where the world is heading, new global currency.