5 ms·
It isn't the debt by itself that is the problem, it is the debt plus the unfunded liabilities. The pension liability alone is estimated at an additional $500 bi
by NoPiece 14y ago
It isn't the debt by itself that is the problem, it is the debt plus the unfunded liabilities. The pension liability alone is estimated at an additional $500 billion. Plus there is the debt and financial problems of the various cities and counties.
- rprasad 14y agoThe unfunded liability will last out most another 50 years (when the last of the employees covered by these generous pensions dies). New employees receive far less favorable pensions: either significant reduced defined-benefit pensions, or a switch to defined-contribution pensions. New employees are also subject to higher retirement eligiblity raises and cannot apply as much (if any) vacation time or unused sick days toward increasing their pension-base salary.