It is difficult to predict the future but when it comes down to it, most of the time when these pensions go belly up, it is due to significant mismanagement and

It is difficult to predict the future but when it comes down to it, most of the time when these pensions go belly up, it is due to significant mismanagement and incompetence. I think a big failing of government pension funds (and Social Security) is that there is always a tremendous temptation for politicans to borrow against them, and leave the repayment to someone who will be elected after they're long gone. The next person kicks the can down the road, and sooner or later you're Detroit. With sane and responsible management I'm sure some pensions would fail anyway because there's always the chance of catastrophe. But I've seen enough pension problems that were the result of risky investing, poor forecasting, and irresponsible borrowing that I feel like most of the time the pension needn't have failed or gotten cut.