Over the past several years, we’ve written a countless number of posts on the precarious financial situation of numerous state and local public pensions around the country all while frustratingly wondering how the massive $3-$6 trillion dollar ticking time bomb doesn’t seem to be that much of a concern to frothy asset markets. As it turns out, precisely no one (our readers excluded, of course), including the workers who are active participants in insolvent public pension ponzi schemes, have any idea just how underfunded they really are.
According to a staggering new survey conducted by Spectrem Group, 6 out of 10 CalPERS retirees and 8 out of 10 NYC retirees are apparently under the illusion that their pensions are fully funded…
NYC Funds pension members were the most likely to indicate that their pension is fully funded (80%) while the CalPERS members were the least likely to indicate that their pension was fully funded (63%). Sixty-six percent of National members indicated that they believe their pension fund is fully funded. In reality, none of these pensions are fully funded. Based upon annual reports, CalPERS is funded at 68.1% and NYC Funds is funded at 62%.
…and that’s a survey of the people who are actually owed money by these ponzi schemes…which means that the general population working in the private sector has no clue whatsoever that underfunded pensions could literally result in a complete, global economic crisis at some point over the next 10-20 years.
Of course, as this one simple map illustrates, reality is somewhat different than the hopes and dreams of America’s public pensioners. In fact, when using realistic discount rates, there is only 1 state pension system in the entire country, Wisconsin, that is more than 50% funded….all the others are trillions of dollars short.
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