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States Warned of $2 Trillion Pensions Shortfall

Posted By admin On January 18, 2011 @ 8:31 am In Money Watch | Comments Disabled

Nicole Bullock
Financial Times [1]
Tuesday, January 18, 2011

US public pensions face a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.

The severe US economic recession has cast a spotlight on years of fiscal mismanagement, including chronic underfunding of retirement promises [2].“

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States Warned of $2 Trillion Pensions Shortfall 5months 340x169 [3]

States face cost pressure, most prominently from retirement benefits and Medicaid [the health programme for the poor],” Orin Kramer told the Financial Times.

“One consequence is that asset sales and privatisation will pick up. The very unfortunate consequence is that various safety nets for the most vulnerable citizens will be cut back.”

Full story here. [1]

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URL to article: http://www.prisonplanet.com/states-warned-of-2-trillion-pensions-shortfall.html

URLs in this post:

[1] Financial Times: http://www.cnbc.com/id/41129099

[2] chronic underfunding of retirement promises: http://www.cnbc.com/id/40026538/

[3] Image: http://prisonplanet.tv/

[4] Pension Pains: States Cut Benefits to Skirt Massive Funding Shortfall: http://www.prisonplanet.com/pension-pains-states-cut-benefits-to-skirt-massive-funding-shortfall.html

[5] Unfunded Benefits Dig States’ $3 Trillion Hole: Orin S. Kramer: http://www.prisonplanet.com/unfunded-benefits-dig-states%e2%80%99-3-trillion-hole-orin-s-kramer.html

[6] Broken Promises: Pensions All Over America Are Being Savagely Cut Or Are Vanishing Completely: http://www.prisonplanet.com/broken-promises-pensions-all-over-america-are-being-savagely-cut-or-are-vanishing-completely.html

[7] Here Comes the Pain: Detroit To “Significantly Cut Vested Pensions” For Retirees: http://www.prisonplanet.com/here-comes-the-pain-detroit-to-significantly-cut-vested-pensions-for-retirees.html

[8] States fear that five words in Obama health law will open door to lawsuits: http://www.prisonplanet.com/states-fear-that-five-words-in-obama-health-law-will-open-door-to-lawsuits.html

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